Why Boomerang Employees Return: Benefits of Rehiring

Employees singing ‘Volver, Volver’ to former employers are getting rehired

by Jacob Monty, Monty & Ramirez, LLP

In today’s competitive labor market, the trend of boomerang employees rehiring—where former workers leave and then return to a previous employer—is reshaping employee retention strategies. Inspired by the sentiment in Vicente Fernández’s classic song “Volver, Volver,” many former employees are coming back to their old workplaces, often with improved pay and renewed commitment. In 1972, Vicente Fernández released the iconic song “Volver, Volver,” singing, “Tu tenías mucha razón, le hago caso al corazón y me muero por volver,” a heartfelt expression of longing to return to a lost love.

Today, this sentiment resonates with many employees who return to their former employers. The trend of “boomerang employees,” those who leave a company only to later return, has surged, with rehires now accounting for up to 28% of all new hires, often accompanied by pay raises of up to 25%. Employers are increasingly embracing this phenomenon, as rehiring familiar faces offers predictable performance and can save companies up to $20,000 in recruitment costs.

Why should employers care?

Boomerang employees have become a significant part of modern hiring practices, making up 28% of new hires. Notably, more than 75% of rehired employees return within 16 months of their departure, underscoring the pull former employers have in the first two years after an employee leaves. Often, employees boomerang back to former employers because their new employers didn’t meet their expectations.

Employers are increasingly becoming more open to rehiring former employees, recognizing their reliable performance and the substantial cost savings involved. Traditionally, labor and employment attorneys have advised against this practice because of concerns about past performance and its impact on current employee morale and perceptions of fairness.

However, as workplaces evolve, rehiring former employees is proving beneficial for both parties, challenging conventional notions of loyalty. This trend has surged, especially in the post-pandemic era, with 89% of small business owners expecting to rehire laid-off employees. Allowing former employees to “sing their song” and return could be a strategic move that brings success. So, employers should weigh the benefits and risks.

Benefits and risks of boomerang employees

Rehiring former employees can significantly streamline the onboarding process. Boomerang employees are already familiar with team dynamics, company culture, and internal processes. They understand their former coworkers’ personalities, strengths, and weaknesses and can integrate back into the team more seamlessly than a new hire.

Additionally, they’re often more motivated and grateful for the second opportunity, leading to higher engagement and better performance. Employers can save between 33% and 66% in recruiting costs compared with hiring a new employee, amounting to savings of up to $20,000 per hire.

However, there are risks to rehiring boomerang employees. This practice could lower morale among current employees, who have remained loyal. On average, boomerang employees receive a 25% pay increase, while loyal employees typically see only a 4% raise. These employees may feel overlooked if they see returning colleagues receiving substantial pay increases or being promoted to managerial positions.

Another risk is potential litigation. Specifically, when an employer chooses to rehire one employee but not another with similar qualifications, there could be grounds for a lawsuit if the overlooked employee belongs to a protected class, such as race, age, or disability.

Also, the bond between employer and employee can take time to rekindle. Like in any relationship, once things are broken off the first time, it’s impossible to repair it completely. So, many attorneys caution against rehiring because they’ve witnessed many of these relationships break again and, at times, cause more damage than the first breakup. It’s important to realize, however, that with the right processes in place, these relationships may blossom into something better, even if they aren’t what they were before.

So, before you bring former employees back, it’s important to determine which songs to put on mute and which songs to keep listening for.

Opportunity and retention

To maximize the benefits of rehiring former employees, you should keep detailed performance reviews on file even after their absence. Such records can help identify which employees are worth inviting back and will help you avoid liability in a potential suit if you have a justifiable reason for bringing someone back.

It’s also essential to maintain amicable relationships with departing employees. Letting high performers know the door is always open for their possible return can facilitate future rehiring. Many Fortune 500 companies have implemented alumni systems to stay connected with former employees, recognizing the value and potential they can bring as boomerang employees.

To mitigate the risks associated with boomerang employees, it’s important to avoid offering extravagant compensation packages or promotions that could alienate employees who never left. It’s crucial to maintain fair and equitable treatment in the workplace.

For example, don’t offer boomerang employees a 25% pay increase if your loyal employees only get a 10% increase, and don’t offer a boomerang employee a promotion if that promotion could have been given to a loyal employee with the same credentials. Because every situation is different, you must balance what you can offer to bring employees back and how that compares with what your loyal employees are getting.

A challenge you will always face, whether you decide to rehire former employees or not, is preventing your current employees from boomeranging back to their former employers. Building strong, personal connections with your employees can help keep them from leaving in the first place.

Additionally, fulfilling the commitments made during the interview process and meeting expectations is crucial for employee retention. Instead of merely offering new hires an office tour and lunch, engage them in meaningful interactions with colleagues in similar roles. Ensure the interviewer is also the future supervisor to prevent misalignment of expectations and unkept promises. By implementing these practices, you can better manage the boomerang trend and foster a more stable, committed workforce.

Overall, the trend of boomerang employees has only continued to rise. You can help facilitate these returns by parting with your employees amicably, using alumni systems, and improving the working environment. But you shouldn’t rehire employees unless you’ve determined with confidence they’ll reassimilate back into the team and that whatever caused the first breakup has changed.

Ultimately, the best solution is to retain employees in the first place by aligning expectations, proactively checking in, and reasonably compensating and promoting loyal employees.

This article was originally written by Jacob M. Monty for the Texas Employment Law Letter.

Jacob Monty is the managing partner at Monty & Ramirez LLP and can be reached at 281-493-5529 or jmonty@montyramirezlaw.com.