Employee Lifecycle

Meaning & Definition

The term “Employee Lifecycle” describes an employee’s entire relationship with an organisation, starting from the point of being recruited to when they leave. The stages of the Employee Lifecycle include hiring, onboarding, training and development, performance management, employee engagement, employee retention, and employee exit. The effective management of the Employee Lifecycle allows HR to enhance their employee experience, increase employee productivity and create long-term workforce plans.

Importance of Employee Lifecycle

• HR professionals will have access to a systemised approach for managing all phases of their employees’ career paths.
• Enhances and optimises the total employee experience from hire to termination.
• Facilitates improved talent management and succession planning.
• Decreases turnover with a structured approach to employee engagement.
• Supports data-based HR decision-making through employee lifecycle analytics.

Legal & Regulatory Considerations

• The term in itself does not have any specific statutory compliance associated with it.

Nonetheless, the various stages of employee life and operation must all comply with the relevant labour laws, payroll regulations, and other statutory requirements under Indian law (such as PF, ESI, gratuity, and final settlement).