By Jessica Tasman-Jones
This article is brought to you by Agenda, an FT Specialist publication that focuses on corporate boards
Many workers who switched jobs during the pandemic are dissatisfied with their new roles, presenting both a retention risk and hiring opportunity for companies operating in tight labour markets.
Almost half (43 per cent) of employees who quit their jobs during the pandemic said they were better off at their old job, according to an international survey by workforce management company UKG.
Indeed, nearly 20 per cent of workers who changed roles during the pandemic have since returned to their old employers, making them so-called "boomerang employees", the survey found. The research polled 1,950 employees across France, Germany, Mexico, the Netherlands, the UK and the US.
French workers feel the most regret, with 65 per cent saying they would return to their previous employer, if that were an option.
A separate report by workforce analytics company Visier also shows that, between 2019 and 2022, boomerang employees accounted for just under a third of organisations’ external hires.
Recruitment and retention are at the top of boards’ agendas. Roughly 92 per cent of directors said talent shortfalls pose a risk to their company, according to the BDO Board Pulse Survey published this spring.
In the current tight labour market, this trend towards boomerang employees has both risks and opportunities.
In terms of attracting talent, rehiring former employees used to be taboo, but company leaders should embrace it, says Ian McVey, general manager for EMEA and senior vice president at Visier.
"Returning employees bring a familiarity with the culture, need less onboarding time and, more often than not, return with a stronger skill set and a fresh perspective from the outside. This all contributes to a renewed sense of purpose and job satisfaction," he says.
Indeed, some companies are becoming increasingly intentional about recruiting former staff, according to a recent article in the Harvard Business Review (HBR) by some of the Visier report's authors.
Deloitte, for example, has an online platform where its global alumni can network. This lets former employees know they would be welcome back, while providing hiring teams with a "massive, known talent pool", the article says.
Workers often jump ship just after the one-year mark for a variety of reasons including the job not matching their expectations. Employers should consider investing in engagement programmes that are targeted at workers who are entering their second year, say the authors. Additionally, they should make sure recruitment promises align with the actual employee experience.
When looking at recruitment, employers should pitch to rehire a former employee at the one-year mark. "Reconnecting at this critical moment can be a great way to encourage an employee who may be considering a return to make the leap," the HBR article says.
Onboarding and offboarding protocols are key components of sustainable talent management strategies – and boards should look out for them, says Anthony C Klotz, an associate professor of organisational behaviour at the UCL School of Management in London.
Offboarding programmes help establish a strong link between a company and its alumni, and good onboarding programmes defend against new hires being poached back to their former employers, Klotz says.
Yet, he adds, investing in recruiting boomerang employees should not come “at the relative expense of the loyal stayers.”
Boomerang employees received an average pay raise of 25 per cent relative to their salaries at the time of their resignation, in contrast to 4 per cent raises for those who stayed with one employer over the same time period, according to the HBR article.
Some 40 per cent of boomerang employees had also been promoted to a managerial position on their return, the data from Visier found.
UK employees saw the highest median job-change jump in pay – notching up of 20 per cent – and were among the least likely to have regrets about their decision, according to the UKG study.
This article is based on a story written for Agenda by Frederic Lee.
