What is the employee lifecycle?

If you talk to an employee on their first day, then again a couple of years after they’ve settled in, you’ll likely have two very different conversations. A lot happens in those two years. They’ve been inducted, they’ve been trained up, they might even have been promoted. They’ve experienced a lot and had the opportunity to engage with the company in a lot of different ways. In other words, they’ve moved through the employee lifecycle, and each stage of the lifecycle will have impacted how they feel about their company. It will also have affected the way they perform and how loyal they feel to their business.

Let’s take a closer look at the employee lifecycle as a concept. What is the employee lifecycle? What are the different stages and why do they matter? And, last but not least, why it’s important to survey employees throughout their lifecycle journey.

Related: Moments that matter — what they are and why they matter

What is the employee lifecycle?

The employee lifecycle is the series of stages an employee experiences during their time at a company. It starts with candidacy and continues through onboarding, performance, growth and, eventually, exit. HR professionals use the employee lifecycle model to understand how to support employees at each phase — and how to help them perform at their best. 

Understanding, and measuring, the employee lifecycle effectively has been known to result in a more engaged workforce and lower turnover. Each stage presents an opportunity for companies to influence the overall employee experience positively. On the other hand, employees who feel overlooked, unheard and unseen at each phase will likely feel invisible.

Stages of the employee lifecycle — the employee lifecycle model

While there are different employee lifecycle models, here at People Insight, we break the employee lifecycle down into five key stages, each of which plays an important role in shaping the employee’s experience.

1. Candidacy

The employee lifecycle begins far before day one. In fact, it starts with the candidacy phase — when potential employees first apply for a job and go through the recruitment process. This lifecycle stage involves the initial interactions between candidates and the company, from submitting an application to attending interviews and undergoing assessments.

Don’t underestimate the importance of a smooth, streamlined and positive candidate experience. Research by IBM shows that candidates who are satisfied with their recruitment experience are 38% more likely to accept a job offer and 80% more likely to apply again in the future. Organisations that communicate clearly, respect candidates’ time, and provide timely feedback can set the tone for a positive employment relationship from the very start.

2. Onboarding

After navigating interviews, tests and tasks, the recruitment process ends and the onboarding phase begins. Onboarding involves helping new hires acclimate to the company culture, understand their role and gain the skills and knowledge necessary to perform their job effectively. A structured onboarding process can hugely impact an employee’s future performance and engagement with the company.

Supporting employees, and checking in with them, during this stage is incredibly important for the employee’s long-term success. You want to make sure it’s done right. After all, companies with a comprehensive onboarding programme see new hire retention improve by 82%, according to a study by Glassdoor. Great onboarding not only helps new employees settle in, but also builds a foundation for long-term success. Providing ongoing support and regular check-ins during the first few months can be crucial in helping new employees feel connected to the organisation.

3. Performance

The performance stage focuses on the employee’s day-to-day contributions to the organisation. At this phase, companies assess how employees are meeting their objectives, contributing to team goals and living by company values. Performance management processes, including regular feedback, goal-setting and appraisals, play a central role in supporting employees to achieve their best work.

Regular, meaningful conversations about performance can help employees feel valued and provide clear pathways for improvement. Recognising achievements can also motivate employees to maintain high standards and strive for excellence. Pulse surveys are a great idea for this stage of the employee lifecycle — they show employees that their opinion matters and that they matter.

4. Growth

Growth is about offering opportunities for employees to advance their skills and career within the organisation. This stage can involve training programmes, mentorship, stretch assignments or formal education. Investing in employee development can drive motivation and retention, as it allows employees to see a future within the company and continuously improve.

Our benchmark data shows us that across sectors, 68% of employees believe they are getting the training and development they need to do their jobs. While this sounds great, it also shows us that 32% of employees don’t feel supported in this area. This is a shame, as we know that 94% of employees would stay at a company longer if it invested in their career development. During this phase, employee listening strategies should be put in place to make sure employees feel appropriately supported and encouraged.

5. Exit

The final stage of the employee lifecycle is, of course, the exit, which occurs when an employee leaves the company. This could be due to retirement, resignation or redundancy. Whatever the case, when the exit phase is managed thoughtfully and compassionately, you can demonstrate to employees that they were valued for their contributions.

Exit interviews can provide valuable insights into the reasons behind an employee’s departure, helping organisations improve retention strategies. Maintaining a positive relationship with departing employees can contribute to a favourable reputation as an employer and can potentially lead to boomerang hires — former employees who return to the company in the future. Employee listening is all too often forgotten during this stage of the employee lifecycle, but employers should remember that even when they’re leaving, employee voices matter.

Why you need to be surveying through the employee lifecycle

Surveying employees at each stage of the employee lifecycle is the only way of understanding employee experiences, needs and expectations. Regular surveys provide organisations with data to identify trends, pinpoint areas of improvement and make informed decisions about relevant organisational change and the direction of the company.

Optimising the employee lifecycle requires insights into each stage of your employees’ experiences. Our employee lifecycle survey provides valuable data on how well your organisation supports its workforce throughout their journey. Contact us today to learn how our survey can help you understand your employees better and create a rewarding, motivating employee lifecycle for your team.

Get in touch to enquire about an employee lifecycle survey and create an engaging employee journey from day one to exit.