Academic perspective Comment
A realisation that the grass is not always
greener, combined with an indication
of commitment from the rehiring firm,
can result in increased loyalty
One area senior leaders constantly
struggle with is delivering the
human capital needed to support
their organisation’s strategic plans.
For example, respondents to the
2019 PwC CEO Pulse survey
identified the availability of key skills
as the third biggest threat to the
growth prospects of their firms. Our
recent research points to the
potential of rehiring former
employees, or ‘boomerang hires’, as
one means of closing this skills gap.
But this involves a shift in mindset
for many organisations and there is
little research to help HR teams
effectively target such hires.
There was a time when an
employee moving on from an
organisation was seen as a
permanent end. Nearly half of
organisations said they previously
had a formal policy of not rehiring
former employees, when surveyed by
Kronos in 2015. However, the idea is
becoming more accepted. The survey
also found that 76% of employers
were more open to rehiring former
employees than in the past, and this
is increasingly popular among
employees too.
Some high-profile boomerang
hires point to the potential of such
an approach. Take Steve Jobs at
Apple or Howard Schultz at
Starbucks, or even Ole Gunnar
Solskjær at Manchester United.
While Solskjær has some work to do,
there is little doubt that Jobs and
Schultz had a transformative effect.
There is emerging evidence that
points to why boomerang hires are
successful. Firstly they know the
organisation relatively well, which
aids the transition. (The challenges
faced by high performers in
transferring high performance from
one organisation to another are well
documented.) They also return with
capabilities gained in the new firm
and a larger social network. Finally, a
realisation that the grass is not
always greener, combined with an
indication of commitment from the
rehiring firm, can result in increased
loyalty to that firm.
So what does a typical boomerang
hire look like? They tend to have had
relatively short original tenures –
typically less than three years.
Their time away tends to be of a
relatively short duration – also in the
region of three years or less. Having
maintained a relationship with a
former manager is a key factor; fewer
than one in five boomerang
employees apply directly for a role
without this prompt or link.
Our ongoing research with JR
Keller and Rebecca Kehoe at Cornell
University and Matthew Bidwell at
the Wharton School, University of
Pennsylvania suggests that
boomerang hires are paid less than
similarly-qualified external hires.
They also perform better than
external hires when they return.
They can target roles that are a better
fit for their capabilities, and hiring
managers can also ensure a good fit
for the new role. Finally, these rehires
tend to progress their careers more
quickly on their return and are less
likely to leave.
There are five key steps firms
can follow in developing a
boomerang pipeline:
1 Manage the offboarding
experience to ensure
employees leave with a positive view
of the organisation, unless they leave
for a direct competitor or under
negative circumstances.
2 Develop an alumni
programme to keep in touch
with former employees.
3 Resource the alumni
programme with a technology
platform, and ensure someone owns
the programme internally.
4 Keep alumni links live with
events and communication.
5 Leverage relationships to
actively pursue alumni for
appropriate roles.
Given the talent challenge facing
most organisations globally,
combined with the potential offered
by boomerang hires, tapping into
this pool in a strategic way appears
to be a valuable opportunity. HR
David Collings is professor of HR management and associate dean
for research at Dublin City University Business School
hrmagazine.co.uk June 2019 HR 17
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