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The Rise of Boomerang Employees

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Boomerang employees are becoming vital to hiring strategies, especially after the Great Resignation and the subsequent Great Regret. This trend shows no signs of slowing, and a corporate alumni program is the key to harnessing its potential.

Topics: Alumni Network, Measurement, Program Benefits

As former employees periodically reassess their choices, they often find themselves drawn back to familiar employers, realizing the grass is not always greener. Interestingly, our research shows that rehire rates have remained steady in recent years, reflecting a shift in HR strategies to embrace this continuing trend. Additional research has uncovered insightful patterns across various industries regarding the timing of boomerang employees' returns and highlights key motivators.

If you've lost track of former employees, we'll explain how leveraging a corporate alumni program can effectively re-engage them and boost their confidence in returning. This strategy not only strengthens your talent pool but also provides a competitive advantage by reducing hiring costs and shortening onboarding times.

Why Do Employees Boomerang?

Why do employees leave, only to return? Harvard Business Review (HBR) research found that many boomerang employees come back because their new employers didn’t meet expectations, often breaching the “psychological contract”—the unspoken agreement between them and their employer. Many felt that their new roles fell short of promises made during interviews, particularly regarding promotions and growth opportunities.

According to the HBR data, financial reasons also play a big role. On average, boomerang employees receive a 25% pay raise compared to their salary when they first left, making the decision to return even more appealing.

Finally, the research found that employees who maintained strong connections with their former colleagues were more likely to return, highlighting the crucial role of social ties in the boomerang phenomenon.

Steady but Varied Rates of Boomerang Hires

Our 2024 benchmarking report showed that 76% of companies are tracking boomerang hires, which make up an average of 8% of new hires—a figure that has remained steady over the past two years, although it varies by those who have a sophisticated offboarding process. For example, 21% demonstrated that 10% to 30% of their new hires were boomerangs.

Accounting, consulting, and tech firms have higher rates of returning employees, while legal and financial services see fewer. This difference may stem from professional services focusing more on business development than talent acquisition in their alumni programs.

The HBR study further highlighted notable industry differences, with retail seeing 33% of new hires as boomerangs, while tech lagged behind at just 14%, echoing the findings that different industries’ unique priorities and talent needs influence their rehire strategies.

High Performers Make the Return Count

Who’s coming back to organizations? According to research from Visier, a quarter of boomerang employees were top performers before leaving. Many come back after roughly a year, eager to renegotiate better salaries, job titles, and perks. They also bring fresh skills and perspectives gained during their time away, making them even more valuable to their former employers.

HBR reinforces this, finding that boomerang employees often return to management roles. Companies tend to offer higher-paying leadership positions to entice top talent back, with most returning within 13 to 16 months, typically just after the one-year mark.

Leveraging Corporate Alumni Management Software to Boost Alumni Engagement

The HBR study highlights that employees who keep in touch with former colleagues are far more likely to return, showcasing the power of maintaining strong relationships even after they leave. They reference the example of Deloitte, which use a robust alumni program to nurture these connections and create a welcoming environment that encourages former employees to rejoin.

The most powerful way for companies to effectively manage these relationships is by using alumni management software. This technology offers the essential tools to nurture connections and strategically engage former employees, greatly enhancing the likelihood of successfully welcoming them back.

The one-year mark is a prime time to reconnect, as HBR found that 28% of new hires were boomerang employees who had left within the last 36 months. Setting up notifications for alumni teams to reach out when alumni approach this key period allows for personalized messages that express how much they are missed and even extend rehire offers, all of which can be automated.

PeoplePath’s own clients like Bechtel are seeing remarkable success with boomerang hires—25% of their new hires in 2022 were former employees. The data reveals that one in three rehired alumni were actively engaged in the community at the time of their return. Their involvement—such as reading articles, exploring job opportunities, attending events, and connecting with fellow alumni—highlights the benefits of staying active on the platform. The alumni manager emphasized the software's benefits, such as improved communication tools for crafting engaging content like newsletters and career fair alerts. It also streamlines the management of our annual global career events, enabling targeted segmentation of alumni by location and expertise.

Corporate Alumni Programs: A Winning Strategy

Boomerang employees offer a valuable opportunity for organizations aiming to strengthen their talent pool. These returning team members already understand the company culture, require minimal onboarding, and often bring fresh skills and perspectives from their time away. By actively investing in alumni programs and engaging with former employees, companies can create a robust pipeline of talented individuals ready to return.

The potential benefits extend beyond the typical sectors like consulting and technology. Industries with high turnover, such as seasonal labor and retail, can significantly gain from maintaining relationships with past employees. A well-structured alumni management program enables these businesses to reconnect with trained and experienced workers who are already familiar with company processes. As a result, they can quickly reintegrate into the workforce and contribute immediately.

If you're ready to tap into the potential of returning team members and build a more resilient and adaptable workforce, consider reaching out to us and seeing our software in action!