QUESTION:

I have heard quite a bit of talk lately around the importance of implementing Employee Lifecycle Management. Can you explain what it is and why it is important?

ANSWER:

As the workforce evolves, it's crucial for organisations to continually refine the way that we manage labour. The processes surrounding Employee Lifecycle Management (ELM) help to ensure workforce effectiveness and alignment with corporate goals.

The benefits of ELM to the organisation are a more aligned workforce to business needs, heightened employee engagement and increased staff retention. Now that the economic uncertainty that accompanied the Global Financial Crisis has abated, the workforce has started to mobilise and unemployment rates continue to fall. Staff retention is back on the executive agenda as recruitment and training costs rise.

To fully understand ELM it's vital you recognise the six steps. These are recruitment and on-boarding, career development/planning, performance reviews, learning and development, compensation management and termination/separation.

Recruitment and On-boarding - Automating the process with an on-line recruitment tool will streamline the process of identifying quality candidates. Once the appropriate candidate is selected, the on-boarding process commences.

Career Development/Planning - Within the first few weeks of commencement, the manager and employee meet to discuss career and training goals, any issues are identified and resolved, the employee's development plan and goals are identified and the plan is created. The employee is engaged and aligned with the enterprise.

Performance Reviews - Regular reviews are vital; these may be annual or twice a year. The review phase is the most important step to the enterprise, as this is the opportunity to provide feedback and guidance on employee performance. In addition, the review phase is an ideal time to ensure employee goals remain aligned with corporate strategy.

Learning & Development - During the performance review, learning opportunities are identified. An on-line integrated solution will display appropriate courses during the performance review and allow the booking to occur. Once the learning is complete, the employee's skills and competencies are automatically updated, ensuring skills frameworks remain current. Continual learning that is in line with employee career goals will ensure engagement is maintained.

Compensation Management is another key to employee engagement - it ensures your people feel rewarded for the work they do. Regular pay reviews are vital and are part of the ELM process. In most organisations, pay reviews are conducted annually. Your human capital management solution should automate the process to ensure minimal intervention is required.

The career development, performance management, learning and development and compensation management processes continue as the employee moves throughout the organisation, until retirement or termination.

Termination/Separation is the final stage and should include exit interviews. Information shared during these surveys provides valuable feedback on why employees are leaving and identifies key areas for improvement. Staff turnover can be costly not only in recruitment, but the loss of intellectual property can also damage research and development efforts. By utilising your human capital management solution to collect this information, data can be collated and shared rapidly and problem areas identified.

As the employee moves throughout the enterprise, they continually progress through the key ELM steps (Development, Review, Learning and Compensation). Once they become a key member of staff, the career development phase must also include succession planning. To reduce risk and ensure business continuity, succession planning needs to occur regularly. This will include flight risk identification and focused skills development for employees being groomed for new roles.

Employee Lifecycle Management represents a fantastic opportunity to leverage your human capital more effectively and reduce the costs associated with employee turnover. An effective talent management strategy that incorporates ELM will ensure your labour resources are executing corporate strategy and impacting bottom-line results.

About the author

Nick Southcombe is the General Manager of Frontier Software. For further information call (03) 9639 0777 or visit www.frontiersoftware.com