Returning to Your Previous Job: The Rise of the 'Boomerang' Employees

In turbulent economic times, severance may not mark the end of your relationship with a company. In fact, rehiring employees who were previously laid off, termed as 'boomerang' hires, is gaining traction. A study by people analytics firm Visier suggests an increasing trend of employees being brought back to their old workplaces within 15 months of termination.

Visier analyzed global data spanning 2018 to 2024 from 142 major organizations, noting that approximately 5.3% of released staff were rehired. Andrea Derler, the principal researcher at Visier, anticipates a rise in these returns as businesses navigate challenges related to rapid technology advancements and economic unpredictability.

Market Challenges Fueling Rehiring Trends

During periods of significant disruption and uncertain market conditions, rehiring often becomes a strategic move for companies. According to Derler, periods of upheaval make workforce planning notoriously complicated, thereby increasing the likelihood of rehiring past employees.

ADP Research highlights that the proportion of new hires who are returning employees rose from 26% to 35% between March 2022 and March 2023. As the labor market becomes increasingly unpredictable, both employers and employees are finding comfort in familiarity, says ADP's chief economist Nela Richardson.

Low Layoff Rates, Yet Declining Job Growth

Currently, the US job market remains largely stagnant, with a decline in both layoffs and hiring rates. The growth rate in employment dropped from an average of 111,000 per month early in the year to about 62,000 in the latter months. Despite the low number of active layoffs, planned cuts have been significant, with over a million job eliminations announced this year.

Who’s Most Likely to Return?

Given the scarcity of experienced managers, organizations prioritize retaining or rehiring managerial staff. Visier's data doesn’t signal a rise in manager layoffs, yet they stand a better chance of being invited back compared to other roles. This is due to the multifaceted nature of management roles, which heavily influence productivity and team morale.

Industries like finance and retail see higher rates of reinstatement, with finance relying on specialized skills and retail experiencing frequent personnel shifts. These sectors reported a rehire rate of 7.5% each, which reflects the dynamics in their operational needs and the value of retaining proven talent. Conversely, technology sees a lower return rate of 4.3%, largely due to its rapidly evolving skill requirements.

Adaptability and Skill Maintenance Are Key

Employees are encouraged to maintain a dynamic skill set actively. Preparing for potential layoffs involves continuous skill development and maintaining professional networks. Derler stresses good 'layoff hygiene,' encouraging leavers not to blame themselves but rather regard it as a chance to enhance their skill set and connections.

Staying in touch with former colleagues can prove beneficial if there's a possibility of rejoining. Derler notes that some returning employees maintained relationships with previous managers, leading to opportunities for reemployment.