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The Boomerang effect: How to lure back exiting or former employees

Story • 16th May 2024 • 5 Min Read

The Boomerang effect: How to lure back exiting or former employees

Talent Acquisition#Retention#HRTech#HRCommunity

Author: Samriddhi Srivastava Samriddhi Srivastava
1.2K Reads
Rehiring boomerang employees significantly cuts recruiting costs, saving employers one-third to two-thirds of hiring expenses. For instance, an average Fortune 500 company could save around $12 million annually by rehiring former staff rather than using conventional recruitment methods.

In a 2022 survey conducted by UKG, it was discovered that 43 per cent employees who left their jobs during the pandemic felt they were better off returning to their previous employers. However, the same survey revealed: one-fifth of those who initially departed eventually found themselves returning to their former workplaces. 

Remarkably, 77 per cent of these boomerang employees cited efforts from their managers to retain them and cultivate an environment where expressing concerns was welcomed.

The reality is the prevalence of boomerang employees presents both an opportunity and a risk for companies. Many are now actively considering former employees as potential rehires, recognising the value they bring. However, this trend also poses a challenge in terms of retention, as newly hired employees may also be more inclined to return to their previous organisations.

But, before diving deeper into this issue, let's first establish a solid understanding of the basics.

What defines a boomerang employee?

A boomerang employee is someone who returns to a former employer after a period of departure. This departure could be voluntary, due to a layoff, or as a result of termination. Additionally, seasonal employees may also come back to previous positions or explore new opportunities within the same company.

Rehire rates for boomerang employees can vary depending on the organisation, but it's not uncommon for individuals to rejoin their former employers. Each company may have its own policies regarding rehiring boomerang employees; some may have stringent guidelines, while others may welcome returning staff with open arms. 

Is boomerang phenomenon is a double-edged sword? 

Rehiring former employees can indeed be a mixed blessing, potentially reintroducing the challenges experienced during their initial tenure with the organisation. Company leaders must remain cognizant of the potential pitfalls associated with boomerang employees.

Complacency among boomerang employees:

Former employees returning to the fold may inadvertently slip into a sense of over-familiarity, which could detrimentally impact their performance on the job. Having previously worked at the company, these individuals may perceive themselves as already versed in their roles, potentially leading to a decrease in effort. Moreover, they might lack the fresh insights and innovative perspectives that new hires typically bring to the organisation.

Resurfacing of past issues:

The decision to rehire a boomerang employee necessitates careful consideration of the circumstances that prompted their departure in the first place. If unresolved issues persist — be it organisational challenges or interpersonal conflicts — these issues may resurface and adversely affect the employee's current performance. If the root cause of the employee's initial departure remains unaddressed, rehiring may not be a suitable solution.

Understanding the motivation behind return:

It is imperative for company leaders to ascertain the true motives behind a boomerang employee's decision to leave their current employment and return to the organisation. It is crucial to ensure that the returning employee is motivated by genuine enthusiasm for rejoining the team, rather than simply seeking refuge from challenges elsewhere.

Negative cultural ramifications:

The return of a boomerang employee may not always be welcomed by all members of the organisation and could potentially disrupt the company's culture, leading to feelings of resentment among colleagues. Particularly, if the returning employee receives preferential treatment in terms of title or compensation, it may breed jealousy among those who remained with the company. Additionally, the returning employee may struggle to adapt to cultural changes implemented during their absence, potentially causing friction within the team. 

Why boomerang employees are on the rise

The prevalence of boomerang employees has seen a notable uptick. In 2021, these returning employees accounted for 4.5% of all new hires, marking an increase from 3.9% in 2019. Often, these individuals departed from their previous roles on positive terms, only to find themselves drawn back to their former organisations for a variety of reasons. 

Some may have initially left to fulfil caregiving responsibilities, which they are no longer bound by, while others may have sought new career paths but ultimately found them unsatisfactory.

However, despite this trend, many organisations have yet to adapt their practices to effectively track and maintain relationships with former employees. This oversight could prove to be a critical error for companies grappling with staff shortages and striving to remain competitive.

The pros of rehiring boomerang employees

There are numerous advantages to welcoming back former employees into your organisation. Some of them are: 

Cost-effective recruitment

Bringing back boomerang workers can significantly reduce recruiting expenses, with employers saving anywhere from one-third to two-thirds on hiring costs. In fact, an average Fortune 500 company stands to save approximately $12 million annually by opting to rehire former staff instead of utilising traditional recruitment methods.

Efficient onboarding

Rejoining employees tend to acclimate to their roles more swiftly compared to new hires, as they are already familiar with the inner workings of your business. This results in a more efficient onboarding process, requiring less training and mentorship from managers and colleagues. In total, this streamlined approach could translate to savings of up to $20,000 per rehired employee.

Enhanced productivity and loyalty

Beyond the onboarding phase, boomerang employees demonstrate higher levels of job satisfaction and commitment compared to new hires. Research involving 13,000 employees revealed that returning team members consistently outperformed their newly hired counterparts and were more likely to receive promotions.

Familiarity with organisational culture

The decision of a former employee to return to your company is indicative of a strong cultural fit, benefiting both the individual and the organisation. Moreover, if they reunite with former team members, it reduces the apprehension associated with integrating a new colleague and understanding their working style.

Fresh perspectives

Former employees bring valuable insights to the table, particularly if they gained experience with a competitor during their time away. Additionally, they can offer valuable perspectives on the evolution of your organisation and whether observed changes are positively impacting its trajectory.

Considerations when rehiring boomerang employees

While rehiring a former employee can offer numerous advantages, it's essential to remain vigilant for potential concerns when assessing a candidate:

Departure under negative circumstances

Take heed if an employee departed under less-than-ideal circumstances, even if they weren't terminated. It's prudent to inquire about their reasons for leaving their previous employer to ensure compatibility with your organisation's culture and values.

You can also read: 

  • 4 ways to build a better manager and employee relationship
  • Business leaders not willing to use employees' pronouns, says 'too confusing’: Report
  • Meta to Cognizant: List of companies that rolled out their own AI tools for employees

Lack of clarity regarding their return

Be wary if a candidate struggles to articulate why they are returning. This could indicate a desire solely for a higher salary or a response to market trends rather than genuine interest in your organisation. While understandable, it may signal a higher likelihood of them departing again if presented with a more enticing opportunity.

Performance history

While the allure of rehiring a former employee may be tempting, it's crucial to assess their past performance objectively. If they did not demonstrate exceptional performance during their previous tenure, it may be wiser to invest in training a new hire with a stronger skill set for long-term success.

Duration of absence

While not necessarily a red flag, consider the duration of time the candidate has been away from your organisation. If they have been absent for an extended period, particularly if your organisation has undergone significant changes during their absence, the benefits of rehiring them may diminish. This is particularly relevant when comparing them to other candidates for the role.

Read More

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