Stages of Employee Life Cycle Management

HR plays a very important role in the employee life cycle. An employee goes through different stages during their stay in the organization. At every stage of the cycle, there are challenges. HR continuously improves their process at each stage for the success of their employees.

There are 5 Stages in Employee Life Cycle Management:


The first stage of the employee life cycle begins before they are employed by the organization. Growing the business starts with attracting and hiring the right people. This is a crucial element in the business development process. In order to succeed in doing this, the HR team should have a strategic plan in place to recruit people. You need to consider things like:

  • Reviewing compensation packages and benefit plans. Make sure it is competitive enough to attract the right talent.
  • Having roles and responsibilities documented for each position is a good idea while reviewing, and updating the document constantly. This will help the interviewee to understand what the organization is expecting from him/her. 
  • Plan your interview process. Discuss internally how many rounds of interviews you’ll conduct and what kind of written assignment, test, or specific questions will be asked during the interview process.


One of the important stages in the life cycle is On-boarding. At this stage, new hires will decide how long they should stick with the organization.  Whether to quit their job or not, most of the employees decide within the first 90 days. This is crucial as the employee becomes part of the organization family through learning new job roles, establishing relationships with peers and supervisors and by developing a network around him or her.

Career Development

Employees want to be successful instantly these days. They want to know whether they are doing the job to prove that they are “best” performing in their roles. Young people or college passed outs want to climb the ladder of success quickly. Having good career development strategies are a way to keep top talent engaged. It is vital to discuss career goals during the interviewing process itself to check whether a person’s goals are realistic and they are aligned with the goals of the organization. Conducting regular performance reviews will help employees to have an idea on how they’re doing and clearly see how they are proceeding towards their set goals. For many companies, employee turnover is the burning concern to solve. If employee turnover is high, it will affect things like employee morale, productivity, and company revenue. Doing analysis will help you to understand why your employees are leaving and how you can enhance employee life cycle stages to improve employee happiness.

Employee Recognition 

Maintaining a good employee relationship is the key to building a loyal and productive team, leading to employee satisfaction. Conducting regular performance reviews will motivate in maintaining a positive workflow for employees. Continuous evaluations are the signs for employee growth to continue their career at your company. However, as per the employee psychology, they want appreciation and recognition for smaller accomplishments in their lifecycle. A good way to keep them happy is through the best employee reward system.


At some point or the other, the employee life cycle has to come to an end because of employee retirement, new employment, relocating for their children school, or to support their family business. It’s important that the off-boarding process should be as strategic and smooth as your onboarding process. When an employee is leaving the company at any stage in the lifecycle, other members of the team or organization should not be affected. It is a responsibility of an HR to make an employee leave in such a way that doesn’t disrupt the entire organization. Having proper documentation with all processes and procedures will help with the proper off-boarding of an employee.

Managing the Employee Life Cycle

It may be overwhelming but being organized is the key to success. HR managers should seek help from higher management within the company. All these stages can be handled internally. But it is essential that all managers are aware of these procedures so that everyone can do best to achieve higher levels of success.

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