Employee is a real asset for any organization. Therefore, it is always necessary to understand their expectations and requirements. The employee life cycle covers these aspects contributing to the motivation and retention of your staff. This post will dig deep into the employee life cycle and understand its seven stages. We will also discuss the impact of effective employee lifecycle management on the success of your business.

Let’s start with defining the employee lifecycle to understand its importance in modern business.

What is Employee Lifecycle?

It is an organizational method useful for visualizing how an employee engages with the company they are working in and includes some key stages. In other words, the employee life cycle consists of seven key stages that show the person’s progress in the organization where he or she is working. It starts with awareness and ends with advocacy after exit.

Let’s discuss the employee lifecycle strategy before going through 7 crucial stages.

What is Employee Lifecycle Strategy?

An employee lifecycle strategy focuses on the journey of an employee within a company from the moment they first learn about it to when they leave the organization. A proper employee lifecycle management system can assist companies in implementing this strategy to improve employee experience, boost retention, and achieve their business goals.

The employee lifecycle strategy has several important aspects including employee lifecycle stages and a strategic approach to design targeted initiatives for each stage. For instance, attracting top talent through employer branding during attraction, and providing growth opportunities to retain employees during development.

A well-defined employee lifecycle strategy improves employee experience and satisfaction, leading to higher engagement, more productivity, and reduced turnover.

7 Stages of the Employee Lifecycle

Here we mention seven employee lifecycle phases that will help you make a strategy

Attraction

This is the first stage and it starts even before someone applies. It is about building awareness of your company as a great place to work. Think of it like marketing your company as a brand to potential employees. Effective strategies include a strong career page, regular blog posts, and social media showcasing your work culture, benefits, and employee experiences. Such strategies can attract talented people to your company.

Recruitment

This stage goes beyond interviews and encompasses everything from crafting compelling job ads to preparing new hires for their first day. Optimizing recruitment involves writing targeted job descriptions that attract qualified candidates who are a good fit for your culture. Also, be mindful of unconscious bias during the process and provide feedback to unsuccessful applicants. Such gestures can bring a positive impression in the applicant s mind.

Onboarding

This stage is about making new hires feel welcome and supported from day one. A clear onboarding process benefits everyone – new hires feel at ease, and HR and managers save time. The HR team can create checklists for managers to complete with new hires including setting up essential software and mandatory training. Encourage new hires to socialize with colleagues through social activities.

Engagement

Around the one-year mark, the focus shifts to keeping employees motivated and feeling valued. This involves promoting company culture and recognizing their achievements. You can get feedback regularly and remain proactive in addressing any issues that might lead to disengagement. It is also necessary to prioritize employee well-being and work-life balance to show you value them as individuals.

Development

Investing in training and development benefits both employees and the company. You can offer training on job-specific skills as well as soft skills like communication and leadership. This helps employees grow, become more well-rounded team members, and stay engaged. A buddy system for mentorship or subsidized training courses can work wonders. Appraisal software can track employee development.

Retention

Ongoing support for employees is a key to retention. This stage is crucial to avoid losing valuable talent. Performance reviews are a way to assess employee satisfaction and address any concerns before they lead to someone quitting. Regular check-ins through an employee lifecycle management system help you identify and fix problems early so that you can retain your staff for a long time.

Exit & Advocacy

A positive offboarding experience can turn a departing employee into an advocate for your company. You can streamline the offboarding process and keep them engaged during their notice period. It is also beneficial to conduct exit interviews to learn from their experiences and avoid future turnover. Companies can give best wishes for the future and ask for positive feedback.

When a company implements these 7 stages properly it can lead to business success.

Impact of Employee Lifecycle on Business Success

The employee lifecycle plays a critical role in business success. By strategically managing each stage, companies can cultivate a positive employee experience from attracting top talent to ensuring a smooth offboarding. This translates into a more engaged and productive workforce, leading to benefits like increased innovation, lower turnover rates, and improved job satisfaction. In short, HR practices with a well-managed lifecycle are a win-win for both employers and employees.

How to Optimise Employee Lifecycle Management

While the employee lifecycle can span from months to years and involve many stages, its optimization can significantly improve job satisfaction, motivation, productivity, and profits.

Here, employee lifecycle management software can act as a game-changer. It provides valuable data and insights across all stages, helping your company identify areas for improvement. Moreover, automation streamlines tasks, ensuring consistent employee support throughout their journey. This empowers HR teams, especially in smaller businesses to effectively manage the employee lifecycle and unlock its benefits.

Conclusion

Employee lifecycle management can take care of the company’s one of the most precious assets- employees. The right strategy can always increase the engagement of employees and reduce turnover significantly. Companies can take assistance from advanced employee lifecycle management software to implement the strategy and leverage its benefits to ensure more productivity through improving job satisfaction.

PowerHR 360 is a comprehensive HR software that can assist your company in managing the employee lifecycle effectively. Contact us to know more about the features of our robust HR solution or book a demo.