6 Stages of the Employee Life Cycle: Tips for Employers to Optimize Talent
To successfully manage and optimize talent in an organization, HR and business leaders must prepare and strategize for all six stages of the employee lifecycle. From the day a prospective employee interacts with your brand for the first time, to the day they are onboarded, to the day of separation, organizations must formulate a cohesive strategy for managing their talent.
Balancing business objectives and talent objectives simultaneously can be quite sophisticated, so it is common for HR leaders to outsource one area of the employee lifecycle. Oftentimes, organizations will hire a recruitment agency or contractors for specialized job requirements. Other times, they may contract with a professional employer organization (PEO) to handle the onboarding of workers. Specialized agencies can be valuable assets in achieving a competitive advantage in one aspect of the employee life cycle. The downside to outsourcing for only one stage is your talent partner is focused on short-term objectives.
The following is a review of each of the six stages of the employee life cycle and some tips and resources employers may want to consider:
1. Attraction
Stage Overview: The attraction stage involves drawing the right candidates to your organization. This is where employer branding, job advertisements, community engagement, and recruitment strategies play a crucial role. Brand perception and expectations are typically established in this stage.
Some helpful ideas to maximize talent attraction:Utilize industry-specific job boards like Dice for tech talent and clearancejobs.com for roles requiring security clearances
Contract with a marketing consultant or agency to develop differentiated employer branding
Implement internal referral software to incentivize positive word-of-mouth
Optimize applicant tracking system to streamline communication and touch points with candidates
Engage and network with local and industry communities
Prepare a benefits summary document highlighting compensation, benefits, and total rewards
MLTG’s Recommendation: Conduct a full internal and external audit of your talent acquisition process to identify strengths, weaknesses, opportunities, and threats. Understand why your employees like working at your company and what the priorities are for job seekers. Highlight the unique aspects of each organization, ensuring that potential candidates understand the value the company brings to employees, their customers, and the community. MLTG can support you with this audit and guide talent strategy. Remember that candidate expectations are established in this stage, and the strategy to attract talent needs to align with how you will retain and develop it. Consistency is paramount and first impressions matter.
2. Acquisition/Recruitment
Stage Overview: Talent acquisition and recruitment is the process of identifying and selecting the right candidates for a job and your organization. It includes candidate sourcing, interviews, assessments, and job offers.
Some helpful ideas to maximize the talent acquisition and recruitment stage:Craft a detailed and inclusive job description including role, responsibilities, expectations, and work arrangements to ensure internal alignment with strategic objectives
Determine appropriate worker status, W2 or contract, for example
Establish a structured and efficient interview process (MLTG recommends 2-3 stages)
Proactively retain multiple recruitment agencies for high-urgency and impact positions
Contract with a recruitment process outsourcing (RPO) firm to source, qualify, and manage candidates through the recruitment process when internal resources are limited
MLTG’s Recommendation: The recruitment stage is an important two-way evaluation for the employer and the job seeker. Traditionally, employers would interview candidates with the mindset of “Why should I hire you?” However, in today’s recruitment landscape, candidates are very much interviewing companies for the right fit and asking, “Why should I work for you?” Organized recruitment documents and processes are one way to stand out, and streamlining the interview process is another. Employers need to be calculated and purposeful in how they interview, who they interview, and why they are interviewing. MLTG can provide consultation on your recruitment processes and introduce talent to your organization.
Thought-provoking questions to consider for recruitment teams:How will this hire impact our organizational or department goals this year and in years to come?
What is the career progression plan for this hire? Would it be more cost-effective or time-efficient to hire a contractor?
Who needs to interview candidates and why do they need to be involved in the process?
How and when will the team share interview notes so there is consistency in messaging?
What are the timelines between each stage of the interview process?
Are we confident in making a hiring decision on a candidate independent of other applicants in the process?
Can they do the job? Do they want the job? How well do they fit in with the team?
3. Onboarding
Stage Overview: Onboarding involves integrating new employees into the organization. It includes orientation, training, and acclimatization to company culture.
To maximize the employee experience, you may consider:Contract with a professional employer organization (PEO) to handle worker classification, onboarding paperwork, and compliance
Contract with a managed services provider (MSP) to administer company-issued equipment such as laptop, cell phone, or other devices
Develop and thorough onboarding and training program for new hires, customizing modules depending on the job function the new hires will be performing
Select an HRIS tool that automates most of the onboarding and tracks progress
Establish performance expectations and roadmap for the first 90 days
Consider implementing a personality or tendencies assessment for the employee and manager to better understand how each other work
MLTG’s Recommendation: A smooth onboarding experience can be a catalyst for a great employment relationship, whereas a poor onboarding experience can speed up the timeline to separation. Communication should start before day one to ensure proper expectations for day one. The first week for new employees should be highly structured and engaging, and hiring managers should be actively involved with new employees. Team integration is a crucial element of successful onboarding and relationship building should be prioritized in this stage. While team integration may seem natural, new employees can be intimidated by new surroundings and faces. Employers need to proactively facilitate this integration with the team. Finally, make sure that new hires have clear expectations for how they can contribute. Speed to productivity is a key performance metric that should be considered when building onboarding programs. We can support our clients with a program design that helps new hires feel welcomed and prepared.
4. Development
Stage Overview: Development focuses on the growth and advancement of employees through training, mentoring, and career development programs. In a Pew Research survey, 63% of respondents who left jobs in 2021 cited a lack of advancement opportunities as a reason. And a 2022 McKinsey study noted that a lack of career development and advancement was the most common reason given for quitting a job.
Some helpful resources for employee development:Invest in a learning management software (LMS) tool, either as a stand-alone product or as part of your HRIS or HRMS suite
Develop a career progression plan for every employee
Make internal mobility and opportunities highly visible for employees
Establish a peer or senior mentorship program, allowing employees to gain different perspectives
Commit to monthly business reviews (MBRs) or performance reviews, fostering an environment for feedback
Adopt an educational assistance program for continuing education, utilizing the $5,250 federal tax credit per employee
Consult career coaches or leadership trainers to build a management training program
Consider succession planning as part of development training
Explore opportunities for reskilling, upskilling, or cross-training
MLTG’s Approach: MLTG is committed to fostering continuous learning and development with every client we work with. We assist in implementing customized training and development programs, and advise on talent optimization strategy. Career progression and succession planning are typically considered in this stage to motivate and help with employee retention. It also can be a talent strategy to overcome a skills gap in your industry. Many employees want to learn, grow, and feel challenged. It’s helpful to build career progression plans tailored to specific individuals instead of just the job function. Every employee has unique skills and experience that require being coached and developed in different ways. It’s important to remember everyone has different motivations and priorities in work and life. A key aspect to untapping employee development is understanding the needs and motivations of individual employees.
5. Retention
Stage Overview: Retention involves strategies to keep valuable employees within the organization, increase engagement, reduce turnover, and maintain a stable workforce.
Some recommendations for employee retention:Foster an inclusive and equitable culture
Build a total rewards program for employee recognition and perks
Invest in market research on industry and employment trends to ensure a competitive compensation and benefits package
Implement an internal and external feedback or survey system
Provide career development opportunities
Revisit employee benefits, such as PTO, and revise to the demands of your workforce
Consider annual compensation increases parallel to rising inflation
Track employee retention metrics carefully, such as turnover rate, eNPS, retention rate per manager, and absenteeism
MLTG’s Thoughts: Employee retention is a core focus of our business model. We work with clients to identify and implement effective talent strategies, from competitive compensation packages to creating a positive work environment. By prioritizing employee satisfaction, we help organizations maintain a loyal and productive workforce, aligning with our vision of building long-term relationships. HR analytics become a huge element of retention, so ensuring proper utilization of your HRIS tools is strongly recommended. MLTG has a network of independent consultants who are skilled in report development and system configuration.
6. Separation
Stage Overview: Separation is the final stage of the employee life cycle, involving the process when an employee leaves the organization, either voluntarily or involuntarily. While undesirable in most instances, business leaders still need to prepare and expect employee turnover. A professional and systematic separation stage increases the likelihood of a positive exit experience and leave the door open for the employee to possibly return to the organization in the future. A poor separation could spread negative word of mouth to prospective new hires, limiting opportunities to attract new talent.
Considerations for effective separation:Set up exit interviews to elicit feedback, or use a survey tool for structured feedback
Clearly communicate expectations for next steps including the last payroll period, their eligibility for benefits or COBRA, and any unused PTO they should be paid out on
Ensure documentation of notice date, last day of employment, and any other supporting records
Revoke access to company systems and facilities
Communicate with team members about leaver immediately
80% of employees who accept counter offers end up leaving within six months
Only 3% of employees who accept a counter offer stay with the same company for more than two years.
MLTG’s Approach: We understand that separation is a natural part of the employee life cycle. MLTG supports organizations in handling separations with dignity and professionalism. Our approach ensures that exiting employees feel respected and that organizations maintain their reputation. We encourage establishing a system for collecting feedback, either via exit interviews or surveys. MLTG recommends seeking talent counsel in the event of counter offers to ensure the needs of the employee are being heard and accommodated. Retaining an employee is almost always the preferred option as opposed to hiring new talent. The loss of business and system knowledge sometimes cannot be replaced.
Conclusion
At Main Line Talent Group, our mission and vision are intricately aligned with every stage of the employee life cycle. We are dedicated to providing exceptional service, fostering long-term relationships, and ensuring sustainable growth for both our clients and candidates. By supporting attraction, recruitment, onboarding, development, retention, and separation, we help organizations and employees navigate these journeys with confidence.
For more insights and expert guidance on managing the employee life cycle, check us out at mainlinetalent.com or send us an email at support@mainlinetalent.com. Together, we can optimize your workforce for the future.
About Main Line Talent Group:
Main Line Talent Group (MLTG) is a leading talent agency and consultancy dedicated to optimizing human capital through technology. MLTG aligns corporate objectives with strategic HR initiatives, ensuring clients leverage their people to achieve success and minimize turnover costs. Our holistic approach to talent management and commitment to fostering long-term relationships allows us to make a positive impact in every stage of the employee life cycle. We offer executive search and project-based staffing services for ERP, HRIS, and AV roles related to JD Edwards, Infor, Epicor, SAP, NetSuite, Oracle, Acumatica, UKG, Workday, ADP, Crestron, BiAmp, Q-SYS, and similar systems. Consulting services include DEI&B, recruitment, talent development strategy, HR analytics, compensation, and performance management.
