Employee Life Cycle: 7 Stages (+The Metrics That Matter)

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Low churn and high employee engagement rates are ideal for boosting productivity—a central task for all HR pros.

Achieving that is only possible by managing all the different stages of the employee's journey, aka the employee life cycle. Like customer experience is crucial to a business's growth, the employee experience is vital to managing and retaining employees.

🔄 What is the employee life cycle model?

The employee life cycle model or program is a series of stages that employees go through from the day they first apply for a role till the day they exit. A proven model used by HR teams across the world, the employee life cycle is broken down into 7 stages - 

• Attraction
• Recruitment
• Onboarding
• Development
• Retention
• Offboarding
• Alumni

❗️ Why is the employee life cycle important?

You don't want just customers. You want super-engaged customers that will buy again. 

Similarly, you don't want to create a culture where employee satisfaction boils down to a mere paycheck. 

You want loyal employees that are vocal about their support and grow with your company for years to come. The cost of replacing an employee isn't just tied to a financial loss; it drives down morale, diminishes the employer brand, and can have a direct impact on customer experience.

📶 7 Stages of the life cycle + the metrics that matter

To improve the employee experience and, by extension, the customer experience, you need to understand the employee life cycle and the metrics that matter at every stage. 

Maciej Kubiak (LinkedIn), Head of People at PhotoAiD, shares:
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“The employee life cycle involves several steps that coexist and influence each other. So if you want to develop a successful strategy, you need to keep different stages in mind rather than plan them separately.

"For example, recruiters should discuss career goals with candidates during job interviews to ensure positive development. Otherwise, they can realize after onboarding that the employee’s aspirations differ from the company’s goals."

It results in a conflict because an employee isn’t satisfied with career advancement opportunities, while the organization can’t offer those tied to employee needs. So integrity is the recipe for the successful model.”

#1. Attraction

The after-effects of The Great Resignation and the pandemic have created an intense competition to attract the best talent. That is why your employer brand is so important. It dictates how potential candidates view your company and their desire to work for you. 

Manage your online reputation to make sure you're viewed as a great place to work. Listen to feedback from current and former employees, employ social media listening, and monitor reviews on sites like Glassdoor. 

Metrics that matter: 

• Employer brand
• Online review quality and scores
• Social media feedback

#2. Recruitment

Recruitment covers all the stages from the minute a candidate applies to the time they accept their offer or get passed on. You wouldn't make your customers jump through hoops when they're buying from you, and neither should you subject candidates to complicated, time-consuming processes. 

Make the process as simple as possible and treat everyone with respect. Everyone should get a response—even if they don't make it to the interview stage. The candidates who don't make it and don't hear from you will likely leave bad reviews damaging your brand. 

Robyn Newmark, Founder & CEO, Newmark Beauty, shares,

“At this step, the application procedure should be as quick as feasible. For example, don't make folks fill out lengthy forms, especially if they're applying via smartphone. In that vein, the mobile recruitment option for applying is a must-have that should be fully utilized."

"You might conceive different ways for people to apply depending on your target applicant category. For example, if your primary emphasis is Gen Z, you might want to invite them to submit a short video CV rather than a traditional 'paper' resume."

"Also, at this point, be honest and authentic."

"You shouldn't oversell your firm or the position you offer in the same way you shouldn't oversell your employer branding initiatives. Instead, be open about the role and what it's like to work for your company.”

Metrics that matter: 

• Time-to-hire
• Offer acceptance rate
• Quality of hire
• Cost to hire

#3. Onboarding

According to Glassdoor, strong onboarding processes can improve retention by 82%. But not all organizations seem to have sprung into action because Gallup's data shows that only 12% of employees agree that their company has a good onboarding process. 

The gap between expected and actual outcomes can create a massive problem since a negative experience can make new hires twice as likely to look for new roles. First, identify what you're doing right and specific areas of improvement. Then, implement these changes and invest in onboarding software to offer a consistent experience.

Chris Walker, CEO of Superstar SEO, shares,

“The onboarding process lays the groundwork for the employer-employee relationship. Ensure that people's equipment is in order on their first day, including laptops and phones, and software applications and login credentials."

Additionally, invite the new hire's manager to participate in the ceremony to welcome them to the team and firm officially. Throughout the onboarding process, be sure to check in with your new hires frequently.

Consider holding a feedback session following people's first week, month, or quarter, for example. You can measure success during this stage by inquiring about their well-being and impressions of their job and the company thus far.

If there is a problem, you will fix it immediately and prevent individuals from becoming early leavers.”

Metrics that matter: 

• Ramp-up time
• New hire engagement
• Training effectiveness

#4. Development

Not enough growth opportunities? Millennials and Gen Z workers prioritize career growth, so the lack of a clear employee development plan is a huge red flag for them.

Trade-in your outdated LMS systems for a tool that integrates with day-to-day activities and more meaningful development frameworks. 

Metrics that matter: 

• Productivity
• 360 feedback
• Engagement
• Promotion rates

#5. Retention

Attracting top talent means nothing if you can't retain them. And no, employee retention is not about throwing in more perks or benefits—employees want to know they matter and that they're being heard. Frequent recognition and feedback are the easiest way to retain employees and turn them into loyal workers. 

David Farkas, Founder and CEO of The Upper Ranks, explains,

“As employee engagement elements are unique to each individual team member and fluctuate over time, you must have a method for surveying employees at various stages of their journey to ensure that they remain engaged.

By planning out the employee journey in the same manner that you map out the customer journey, your firm will reap two major benefits: greater talent retention and an increase in your company's overall reputation.” 

Metrics that matter: 

• Employee engagement
• Retention/Attrition rate

#6. Offboarding

Offboarding is just as important as onboarding. When employees exit disgruntled with the process, they're unlikely to recommend potential candidates or consider coming back if they've left voluntarily. 

Listen to employees. Ask for feedback and use those insights to improve your HR tech stack and make improvements to your employer brand. 

Metrics that matter: 

• Company rating
• CEO approval
• Reviews and ratings
• Business outlook and recommendations

#7. Alumni

While most employee life cycle models only feature 6 stages ending with an employee's exit, it's also essential to have a relationship with former employees. They might turn into boomerang employees, become your customer at their new job, or be asked to share their experience with potential hires. 

Create an alumni community and invest in it. Listen to what they have to say and use that feedback to close the loop on the employee life cycle model. 

Daria Maltseva, Head of Product at KeyUA, shares,

“To create a successful employee life cycle we should have happy leavers from our company.

After leaving the company they should always praise our company to others and the good working atmosphere of the company so that people will get a good image of the company and the reputation of the company will increase.

We should also work on negative reviews immediately to rectify it so that people can understand that we really are genuine and their opinion matters to us.”

Metrics that matter: 

• Reviews and ratings
• Employee referrals
• Product recommendations

🔮 2 Latest employee life cycle trends

The use of 360 feedback and AI in the employee life cycle have recently surfaced as major trends in the employee life cycle program. But they're not without controversy. 

360 feedback is a great way to create an open growth culture. However, some tools that allow anyone to leave employees feedback anonymously can backfire by causing the team's morale. And the use of AI in HR streamlines all your processes but loses points when it comes to the human touch. 

Do employees want to talk to bots? Or would they rather be connected to each other and their managers? That's for you to decide. Of course, you can always have a hybrid mix of manual and automated check-ins to put your employees first. 

➡️ Treat your people like your customers

We've drawn the parallel between customer and employee experience several times by now. But if you really want to understand how to create a winning employee life cycle model, all you have to do is ask yourself one question: 

"What would you do if this employee were your customer?"

That answer can help you navigate tricky situations during all stages of the employee life cycle. If you wouldn't want your customers to wait for days to hear from you, don't do it to potential hires.

Or, if you wouldn't want to waste your time on an unqualified prospect, use the same standards for recruiting. If you have the ideal candidate in mind, you can use an ATS to filter out resumes you believe have the potential, all while ensuring they are in the best format for ATS resume to maximize your chances of finding the right fit quickly.

At the end of the day, businesses care about revenue. And revenue growth is inextricably linked to the employee experience. So, treat your employees like your customers and watch all the right metrics soar. 

Need help with tweaking your employee life cycle? Our experts at Zavvy are just a click away to assist you!

❓ Frequently asked questions about the employee life cycle

What is the HR life cycle?

The HR life cycle is the same as the employee life cycle. There's a lot of overlap between the different stages of the HR life cycle and the overall HR strategy. 

What is HRM?

Human resource management or HRM is a strategic approach to managing employees in the workplace. The aim is to get employees to contribute effectively to the company's goals and help them grow. 

How to map your employee life cycle

Based on each stage of the employee life cycle, ask yourself and the team questions to determine if your current processes are meeting employee needs. The mix of qualitative and quantitative data can help you prioritize your workflows and boost productivity and revenue. 

How to measure the employee life cycle

Without the right data to back your decisions, you're flying blind. Employee experience management software can help you keep track of all the feedback and measure the different metrics pertinent to each stage. 

What is the talent management life cycle?

The talent management life cycle refers to the entire process of attracting, managing, developing, and retaining employees in an organization. This cyclical approach ensures that the organization's human capital needs are consistently met and optimized. Each stage of the talent management life cycle has its unique tools, processes, and best practices. When combined, these stages ensure that organizations can attract the best talent, develop and engage them effectively, and retain them for the long term.