Rehiring former employees laid off in previous downsizings has not always been regarded as an accepted business practice. But today, some nine in 10 employers say they are open to rehiring former employees.
These employers are more than just paying lip service to the concept. It’s actually happening. Additional research found that as many as 18 percent of laid off workers are rehired by their former employer.
Why do organizations rehire laid off workers?
• 37 percent — Familiarity with the job.
• 33 percent — Understand the organization’s culture.
• 20 percent — Minimizes the likelihood of a bad hire.
• 10 percent — Do not hire back former employees.
Organizations may look to rehire past employees to respond to market opportunities as the economy rebounds. Former employees can be less of a risk because they are known for the skills they bring with them; they hold institutional knowledge; they likely have established relationships; they understand the organization’s culture and their ramp up time is nominal. Outplacement candidates are being rehired into their former roles on contract or project assignments to complete critical or time-sensitive initiatives.
Tapping former employees can be a win/win talent strategy, as long as the employee parted on good terms, the downsizing process was handled with respect and dignity, and the human resource policies in the organization support such an approach.
Here are five best practices for rehiring past employees:
1. Build a talent strategy. The worst time to start looking for key employees is when you desperately need them. Don’t wait until there is a gaping hole before starting to think how to fill it. Look to the future and align talent strategies with business plans.
2. Know your HR policies. Be familiar with all related HR policies and follow them. Is there a written severance policy or layoff/recall policy? What was the news communicated to the employees when they were let go? Were they given any indication about what the company would do about their jobs should economic circumstances change? Did the employer (or management representatives) make any promises of reemployment or preferential treatment? If so, the company needs to consider whether its representations to departing employees created rights where none existed otherwise.
3. Be clear about long-term needs. Sometimes it’s more prudent to bring back employees on part-time contracts or project-specific assignments and expand the employee’s hours if and when needed. Be clear that job security is based on both employee performance and company’s performance (although, the latter is likely well-understood if the employee was let go during a downsizing.)
4. Clarify the expectations. Rewrite the job description for each returning employee based on changes to your company. Interview a returning employee as though he or she was a new hire. Discuss expectations on both sides.
5. Communicate with authenticity. Communicate with both the existing employee base as well as new hires about why the change in strategy has necessitated the need to bring in new talent to the organization. Willingness to rethink, backspace, try something new, and change and adapt is a sign of a strong leader. Authentic and credible communication wins loyalty and employee commitment.
The employee you let go previously may now have different career goals from when they were last in your employ. There is nothing like the “wake-up call” from a layoff to remind people about the need for proactive career management. Further research we’ve done in this area highlights that people are attracted by career development opportunities, attaining work/life balance, and working for an innovative company culture. If management doesn’t provide employees with these opportunities, then workers are going to take their knowledge and skills elsewhere.
Judy Feuerherm is the career management practice leader for Right Management’s Northeast Regional Operations, based in Cape Cod. Right Management (www.right.com) is the talent and career management expert within Manpower, the global leader in employment services. She can be reached at judy.feuerherm@right.com
