Boomerang employees are a phenomenon on the rise across the United States. The term is commonly used to describe anyone who has been re-hired to work at an organization they previously left. Despite the growing trend, HR professionals are often left wondering whether rehiring old employees is an effective solution to the current uncertain labor market, or whether it is more trouble than it’s worth.
HR leaders are battling huge problems, such as smaller budgets for recruitment, more open jobs than unemployed talent, and the infamous “Great Resignation,” which is leading to high turnover rates. It’s a difficult time, but can these recruitment woes be alleviated by rehiring former employees?
The Rise of Boomerang Employees
According to LinkedIn, boomerang employees accounted for 4.5% of all new hires last year, compared with 3.9% in 2019. What is the reason behind this growth?
The first place to start is its link with the Great Resignation. Employees increasingly know what they want and are willing to leave an organization if it doesn’t match their needs and desires. This is reinforced by a shift in priorities following the pandemic, when workers experienced and became accustomed to increased flexibility. If an organization stopped offering flexibility following lockdowns, some employees responded by resigning. Concurrently, some employers have been particularly slow to announce their return to office (RTO) policies and the uncertainty has discouraged employees. If workers are aware that their previous employer has an RTO or flexible working policy more suited to their needs, becoming a boomerang employee becomes an attractive option.
Other factors are also at play here. Organizations with Covid policies and vaccination mandates may have seen large changes in their workforce. Big-name organizations, including American Express, Lyft and Goldman Sachs, have mandates in place to prevent unvaccinated workers from coming into the office. From the employee perspective, some workers, particularly vulnerable workers, are seeking organizations that prioritize protecting staff from Covid. If an employer isn’t providing clear guidelines to protect employees, some staff will see this as a red flag. Again, if previous employers are offering what their current employers are lacking, employees may “boomerang.”
Technology is another reason behind the trend; in particular, the rise of social media and professional networking platforms. These ensure that former employees can keep in contact with their old colleagues and see how an organization is progressing over time. Ultimately, former employees are reminded of what they are missing out on, piquing their interest to want to rejoin.
Why Employers Should Welcome Back Boomerang Employees
The pandemic caused many people to leave the workforce due to circumstances out of their control, including their health, child care duties and home schooling. According to a survey by Pew Research Center, almost half of all workers who left a job in 2021 listed child care issues as a reason. Ultimately, workers in this situation are unlikely to hold negative feelings toward an organization and will feel optimistic about the chance to return.
It’s also important to recognize that embracing boomerang employees is mutually beneficial. Returning employees will bring certain benefits to their return. An example of this is that they already understand the operation. Boomerang workers know the ins and outs of an organization and are a tried-and-tested cultural fit, including having existing relationships with colleagues and managers. During the Great Resignation, this is welcome news for hiring managers as returning employees, therefore, carry fewer risks, especially as the average cost-per-hire is $4,425, according to SHRM.
The onboarding process is also a draw to welcome back returning employees. Boomerang employees bring previous knowledge and experience of an organization and its systems/processes, meaning a much-simplified onboarding process. Hiring managers don’t need to provide the same extent of training and qualifications that a completely new employee would need. Typically, the hours that managers spend training their employees cost organizations an estimated average of $1,252, according to ATD. Boomerang employees will get up to speed quicker and require less time input from colleagues and supervisors.
There are also the added benefits of an employee working at a different organization before returning. By working elsewhere, employees will have gained new skills and experiences, which can provide additional value to the organization they are rejoining. This may spark new ideas for the organization, and boomerang employees can also bring insights into what others in the market are doing. Additionally, returning employees have likely gained new connections and customers. Pre-existing contacts and relationships are likely to come as welcome news to the organization to which they are returning.
Finally, boomerang employees can have a domino effect on talent retention and attraction. When previous employees return, it’s evidence that an organization is worth returning to and a signal to current staff that the grass isn’t always greener elsewhere. For entry-level employees, boomerang employees are an advertisement for good organization culture, benefits and work-life balance.
What Are the Risks?
Welcoming back boomerang employees is not risk-free. A lot can change in an organization in a short time, and returning employees may struggle to adapt. Some organizations believe that rehiring employees may lead to a higher turnover rate as other employees at the organization think that the door will always remain open, even if they leave.
Another risk is that returning employees may hold grudges, either against a system, a person or a culture. If the organization or person has not moved on, it may be difficult for the boomerang employee to move past this, causing negative tension.
To combat this, employers should recognize the importance of a thorough offboarding process, including exit interviews. Rigorous exit processes can ensure that issues are uncovered earlier and will not come as a surprise if an individual decides to return to the organization.
Hiring managers should not be afraid to ask boomerang employees what they have done since leaving the organization or about any skills they have acquired. Interviews are a great time to ask questions about any unresolved issues and raise the question of why they want to return.
Overall, rehiring previous employees isn’t a bad idea. The trend is happening across the country for a reason. In the age of the Great Resignation, hiring is becoming more challenging. With nearly twice as many job openings as unemployed Americans, competition for talent isn’t going away anytime soon. By rehiring previous employees, organizations may find that they save a lot of money and time and gain loyal long-term employees.
07 September 2022
Category
HR News Article