DEVELOPMENT OF CONCEPTUAL BASES OF THE EMPLOYEE LIFE CYCLE WITHIN AN ORGANIZATION

Olena Gladka,Yana Dohadailo,Victoria Fedorova

doi:10.3846/btp.2022.13510

Olena Gladka, Yana Dohadailo + Show 1 more

Open Access

https://doi.org/10.3846/btp.2022.13510

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Abstract

The purpose of the study is to review and integrate various definitions of the employee life cycle (ELC) and to develop new conceptual bases of ELC by applying logical analysis and systemic approach. In this article, we suggest the employee life cycle has a “client-based” approach. Therefore the development of the ELC is similar to the development of the client life cycle and each stage of this process requires adoption and use of external and internal personnel marketing tools. At the same time, it implies simultaneous various activities of employees and employers alike. A customer-centric process on the labor markets (external and internal) is initiated by the personnel marketing product. It is defined by three levels aiming to attract and retain employees. The model of the ELC proposed hereafter shows the bilateral mechanism of the employee-employer interaction. Through the activities of external (employee attraction) or internal (employee retention) personnel marketing the organization can build its “perceived” or “received” Employer Value Proposition (EVP). The refined definition of the ELC is based on the theoretical foundations of personnel marketing and takes into account the employee and the employer’s perspectives; our definition identifies the ELC time frame and defines indicators of the ELC measurement for further empirical studies. Suggested ELC stages were developed in a way to reflect characteristics and actions for the employer and the employee simultaneously. To maintain or renew the employee engagement level a set of measures were suggested for implementation at each stage of the ELC.

Highlights

Under the modern market conditions, when the economy is largely based on innovation, learning, and knowledge of employees, the main source of competitive advantage of any organization is the qualified and committed human resources
It will be logical to argue that the “employee life cycle”, can be seen as a period when the relationship between an employee and an employer is developed, i.e. the time of employee-employer interaction
Based on the conceptual framework of personnel marketing we argue that the employee life cycle development should be similar to the customer life cycle

Summary

Introduction

Under the modern market conditions, when the economy is largely based on innovation, learning, and knowledge of employees, the main source of competitive advantage of any organization is the qualified and committed human resources. Every organization faces a very crucial challenge consisting in attracting talented employees and in retaining them for a longer period. Effective management of processes related to employees’ attraction, recruitment, development, and retention entirely depend on the effective management of the ELC within an organization. Many studies show that the cost of replacement of skillful employees is much higher than the cost of retention. According to the statistical data analysis of the Retention Report of The Work Institute (2019), 41.4 million U.S employees voluntarily left their jobs; that is to say, more than 27 out of every 100 U.S employees quit in 2018. According to this report, it is considered that small investments in employee retention can significantly reduce the direct costs of employee turnover.

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