Keeping new employees engaged is critical to ensuring a productive long-term employment relationship and lower costs associated with employee turnover. However, globally, only 20% of employees declare themselves as being engaged at work, according to data published by Gallup. 71% more American employees are disengaged in 2021 than in 2020, according to the Achievers Workforce Institute.
Engagement and talent retention are extremely important for any company, as the longer the employee lifecycle, the more productive and valuable the employee is as an asset to the organisation. Recognising an employee’s accomplishments is key for companies for demonstrating how much they value their employee’s commitment to the company.
Employee Life Cycle in HR Practice
The term employee life cycle refers to an employee’s journey with the company, from the moment of applying for a job position through employment and the termination process. Thus, this employee journey is composed of multiple stages with specific elements and objectives.
As you pass through the various phases of your employee life cycle, in HR practice, different activities and techniques are devised with the overall objective of retaining your talent and skills within the organisation.
Strong employee life cycle HR management processes at your company are key to attracting and retaining top talent and differentiating your company from the competition.
In order to better understand how HR professionals manage your total employee experience at the company, we will differentiate between the main stages of the employee life cycle in HR.
The 5 Main Stages of the Human Resource Life Cycle
A well designed, executed and managed life cycle of HR can ensure that the right employees are in the right roles, that they feel engaged with the company, satisfied with their work and well-performing. All 5 stages of the Human Resource Life Cycle play an important role in the overall employee experience.
Thus, attention has to be paid to each and every one of the 5 stages of the human resource life cycle. As such, we have highlighted below the five core hr life cycle stages, with key data illustrating why each stage is important for the overall employee experience.
Stage 1: Talent Attraction & Recruitment
Nearly 7 in 10 (69%) of companies have reported talent shortages and difficulty hiring – a 15-year high, according to a ManpowerGroup survey carried across all industry sectors in 42 countries and territories.
So, given that it is becoming more and more difficult to hire the right employee for the job, talent attraction is a key element in any HR life cycle journey.
Talent retention starts with how the company presents itself in its official communication and through the job postings and interactions between potential candidates and talent acquisition professionals.
The recruitment phase starts at the moment the candidate submits a job application, and if it is successful, it concludes with an employment offer and a signed employment contract.
Recruitment is crucial for setting the right stage for the employment, and it is really important for the future employee to grasp as well as possible the details and requirements of the job in order to have a running start at the job.
Stage 2: Pre & Onboarding Processes
The Pre and Onboarding stages of an employee cycle can be many times a make-or-break moment in the nature and future possibilities of the employer-employee relationship.
A survey carried out in 2021 by introdus, found that 58% of employees are more likely to stay for more than three years in a job if they have experienced a good Pre & Onboarding process. Moreover, the study also found that for the overwhelming majority of surveyed employees – 90% of them – it only takes 6 months of being on the job in order to decide whether to stay or not with the new employer.
So, we can safely conclude that the Pre & onboarding stages of the employee life cycle lay the foundation for the future relationship. These processes should have both a formal and an informal dimension – the focus is not exclusively on gaining productivity, but also ensuring a human connection with the team, and gaining an understanding of the company culture and values.
If onboarding has been effectively implemented, you will feel like you have undergone a smooth transition, that you have been supported along the way and that your needs and expectations have been properly accommodated. Effective onboarding will lay the foundation for employee engagement.