The term "employee life cycle" refers to the entire life cycle of employees within a company. This cycle comprises various phases that each person goes through from joining the company to leaving.

Each of these five phases offers the company the opportunity to have a positive impact on the employee's career and well-being, which in turn can have a positive influence on performance and corporate culture.

These are the five phases of the employee life cycle

1. Recruiting and onboarding: This is the first phase in which a person joins the company. It includes the search, selection and recruitment of new talents and workers, as well as their introduction and integration into the company.

2. Development and growth: In this phase, the company concentrates on developing the skills and competences of the employee. This includes training, further education and individual career development opportunities.

3. Performance and evaluation: This involves the regular assessment of the employee's performance; feedback discussions and target agreements are tried and tested techniques. This phase is important for the employee's professional development and motivation.

4. Retention and employee engagement: In this phase, the focus is on maintaining employee satisfaction. It includes measures such as surveys, team-building activities, incentives and the creation of a positive working environment.

5. Separation or retirement: The final phase of the employee lifecycle occurs when the employee leaves the company, whether through termination, retirement or for other reasons. The aim of this phase is to make the transition as smooth as possible for both parties.

Every employee lifecycle harbours these challenges

In a market where talented individuals change jobs frequently, attracting and retaining employees is a growing challenge. Companies must constantly adapt in order to remain attractive – for example, offering remote solutions or flexible working hours in order to be attractive to employees during the recruitment phase. Other challenges of the employee life cycle, both for HR departments and for the entire company, include:

• Consistent realisation of the various phases: Incorporating the various phases of the employee life cycle into a company's normal operations is not easy or a matter of course. It can be difficult to integrate all phases effectively – for example, to enable consistent onboarding in phases with a very high workload or to guarantee further training opportunities when there is a high level of sickness.
• Measurement of effectiveness: Evaluating effectiveness and profitability in the context of the employee life cycle is a complex task. In particular, determining the return on investment (ROI), i.e. the question of how much the company gains in relation to the investment in HR strategies and programmes, is difficult to answer unequivocally: It is not always obvious how HR-related initiatives directly affect the company's overall performance.
• Diversity and inclusion: It is important to ensure that the employee lifecycle is designed with diversity and inclusion in mind. This requires a constant review and adaptation of HR strategies to avoid discrimination and promote a diverse workforce.

Tools and techniques in the competition for the best talents

HR departments rely on a variety of tools and techniques to attract qualified workers. Some of the most important are:

Online platforms such as LinkedIn and specialised job portals are essential for advertising jobs and finding candidates. Social media recruiting uses networks such as Facebook and Instagram to reach potential applicants and strengthen the employer brand.

The use of artificial intelligence and machine learning in recruitment software is particularly innovative. For example, an AI-based system can automatically scan CVs and identify the most suitable candidates for a position by analysing keywords and professional experience. The use of chatbots in the recruitment process, which answer frequently asked questions from applicants, is another way of making communication more efficient.

In addition, career fairs and recruiting events offer the opportunity to proactively identify potential candidates. Internship and trainee programmes serve to introduce young talents to the company and retain them in the long term.

Tools and techniques to retain employees in your company

One important aspect is employee engagement, which is promoted by customised survey tools. These tools enable companies to collect regular feedback and make improvements based on this.

Performance management systems also play a central role by enabling continuous performance assessments and target setting. Digital platforms offer transparent and effective communication between managers and employees.

In terms of company loyalty, the focus is increasingly shifting to the well-being of employees – for example, the opportunity to choose their own workplace. The coworking solutions from Office Club offer various solutions for choosing your own working environment away from the office culture and according to your individual needs. Initiatives such as health and wellness programmes also contribute significantly to employee retention.

Overall, a mix of digital solutions and personalised strategies is key to attracting talents and workers and ensuring strong company loyalty in a dynamic working environment.