What is the employee lifecycle?

The employee lifecycle is the set of stages a person moves through with an employer, usually attraction, recruiting, onboarding, development, retention and separation. Each stage has its own legal deadlines and its own records to keep.

In shortThe employee lifecycle is a model of the stages of employment, from the time someone first hears about a company to the time they leave. Most versions use six stages: attraction, recruitment, onboarding, development, retention and separation, and some add a seventh for former employees who become referrals or come back as boomerang hires. The model is useful because it makes a company look at each stage as a process with an owner and a measure, such as time to fill, time to first solo shift or 90-day turnover. It is also a practical compliance map, because every stage carries legal duties. Recruiting is subject to anti-discrimination law, and background checks by a screening company to FCRA steps. Onboarding has Form I-9 deadlines, a withholding certificate the employee furnishes on or before the first day of work, and new hire reporting within 20 days. During employment, time and pay records have to be kept and leave laws followed. Separation brings final pay deadlines that are set by state law and can be as short as the day of termination in some states, plus benefit continuation notices where they apply.

Stages, measures and legal duties

The employee lifecycle
Stage A useful measure A legal duty in this stage
Attraction and recruiting Applicants per opening, time to fill Consistent, job-related hiring criteria
Onboarding Days to first solo shift Form I-9 Section 2 within 3 business days, new hire report within 20 days
Development Skills certified per quarter Pay any required training time as hours worked
Retention 90-day and 12-month turnover Accurate time records, overtime, leave laws
Separation Exit survey themes Final pay on time under state law

The employee onboarding process guide covers the stage most companies get wrong, and turnover rate shows how to measure retention.

The employee lifecycleAttract andrecruitOnboardDevelopRetainSeparate90-day turnover fell from 35% to about 16%
Every stage has a measure and a legal duty. Onboarding was the stage losing people.

Worked example: finding the leaky stage

A 90-day problem at a cleaning company

A commercial cleaning company with 150 employees hires 60 people in a year. Of these, 21 leave within 90 days, a 90-day turnover of 21 / 60 = 35%. People who stay past 90 days rarely leave in the first year.

The data points to onboarding, not pay. Exit notes show the same story: new hires were sent to a site alone on day two, without knowing the building or the checklist.

The company adds two shadow shifts with an experienced cleaner, a site checklist on the phone and a check-in call at day 30. The next year it hires 55 people and 9 leave within 90 days, about 16%. The legal steps in onboarding, the I-9 and the new hire report, did not change. The experience around them did.

Mistakes that are specific to the employee lifecycle

Giving each stage an owner

The lifecycle model only helps when each stage has a named owner and one or two measures that are reviewed on a schedule. In a small business the owner may be the same person for several stages, which is fine as long as the measures still get looked at.

Owners and reviews by stage
Stage Typical owner Review
Recruiting Hiring manager with HR Time to fill each month
Onboarding Site manager 90-day turnover each quarter
Development Team lead Skills certified each quarter
Retention Site manager with HR 12-month turnover and exit themes
Separation HR or payroll Final pay on time, every case

Keep one record that follows the employee through every stage, so the hiring source, onboarding dates, training and exit reason can be connected later. That is how you learn which recruiting sources produce people who stay.

Second example: connecting recruiting to retention

A home care agency hires 80 caregivers a year from three sources: online job ads, employee referrals and a local training school.

When it links hiring source to 12-month retention, referrals stay longest: 14 of 20 referral hires are still there after a year, compared with 18 of 40 hires from online ads. The agency adds a referral bonus paid after 90 days and shifts part of its online ad budget to it. The exit interview questions it asks leavers now include where they first heard about the job.

Split turnover by stageCalculate turnover in the first 90 days separately from turnover after 90 days. If most people leave early, money spent on pay or perks for long-serving staff will not fix it.

Questions people ask

What are the stages of the employee lifecycle?

Usually attraction, recruitment, onboarding, development, retention and separation.

Why is the employee lifecycle important?

It shows each stage as a process with its own measures and legal duties, so you can find where people are lost.

Which stage of the employee lifecycle is most important?

It depends on where you lose people. For many hourly employers, it is onboarding, because many leave in the first 90 days.

Does the employee lifecycle include former employees?

Some models add an alumni stage, because former employees can refer candidates or come back.

Who owns the employee lifecycle?

HR usually owns the model, but each stage needs an operational owner, such as the hiring manager for recruiting and the site manager for onboarding.

How do you measure the separation stage?

Track exit reasons, whether final pay was on time, and whether leavers would recommend the company or come back.

Related on EZTime

You may also need

Keep HR paperwork and updates in one place

Digital HR forms, e-signatures and a digital employee file with expiry reminders, plus announcements by location, department or role.

Disclaimer: What you read here about employee lifecycle is general information, not legal, payroll or tax advice, so confirm the current rule where you operate; the examples are fictional.