Organizations like Deloitte, SAP, and Dell are implementing alumni associations and ex-employee networks to stay connected to their “colleagues for life.” And as many as 22% of the more than 60 respondents to a Conenza survey claimed that they have had alumni programs for at least 10 years.
In today’s workplace, where more than 20% of workers change roles every year, staying connected to former employees (who weren’t excused due to poor performance or policy violations, of course) is becoming extremely important. And if organizations don’t stay connected to their former employees, they might fall behind their competitors.
Aside from the need to understand current market pressures and HR trends, here’s why employers should stay connected to their former employees.
Your Organization Will Spend Less Money Rehiring Former Employees
Research and studies have revealed that rehiring former employees and nurturing company alumni networks can save the average Fortune 500 company around $12 million per year.
Rehired employees are also 40% more productive in their first quarter at work and tend to stay in their jobs longer compared with brand-new hires, who aren’t as productive and have higher rates of turnover. Overall, it doesn’t take as long to get rehires up to speed because they’re already familiar with the organization, its culture, and its work.
Your Organization Will Have Access to Alumni Referrals
Organizations will also save money and time with an employee network that refers top-quality candidates to them. Alumni, whether they are currently working for your organization or not, will be able to refer strong candidates to your organization on an ongoing basis, making its recruiting efforts much more efficient.
Research indicates that candidates who are referred to an organization by former employees tend to be better qualified and more likely to commit to an organization long term. These referrals also help organizations save money to set aside for recruiting efforts.
Your Organization Will Become a Thought Leader and Build a Great Reputation
Your organization will be able to build a positive reputation across various industries if it stays connected to its former employees, especially when they go on to work for other organizations.
The more positive external connections your organization maintains, the easier it will be for it to build a positive reputation among potential clients, partners, employees, etc., at other organizations. What’s more, those external connections will help your organization gain better insight into the broader concerns of its industry and business, allowing it to become and remain a prominent thought leader.
Overall, research and statistics continue to show that employers should stay connected to their former employees if they truly want to remain competitive in the modern-day workforce.
Staying connected to former employees is a great way to get them back into the company at a later date. Learn other strategies to help you compete for talent when you attend RecruitCon 2019, in Nashville, Tennessee on November 14–15, 2019. Click here to learn more, or to register today!