Should You Rehire Former Employees? - Conversation Starter - HarvardBusiness.org

Should You Rehire Former Employees? - Conversation Starter - HarvardBusiness.org

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Conversation Starter Should You Rehire Former Employees?
1:42 PM Wednesday October 7, 2009
by Claudio Fernández-Aráoz >

Sure, Apple Computer needs all the help it can get in the tough tablet-computing market, but was it really such a good idea to bring back a former employee, one who'd been a key developer of the failed Newton PDA, as its VP of product marketing? >

My answer is a qualified yes. The way the company reintegrates this prodigal executive will have a lot to do with how good an idea it turns out to be, of course. But by bringing him back at all, Apple gets the following: a talented individual who understands its unquestionably unique culture, who was wildly successful in a different setting (at Nike), and who perhaps brings new perspectives and skills to the table as a result. >

It's still fairly rare for companies to rehire former employees, but this practice will likely become more frequent as organizations try to rebound post recession. Organizations will have to be much more creative in finding candidates for strategically important positions — and former employees clearly represent a vast pool. These "outside-insiders" can walk a fine line: balancing a deep understanding of the company's culture with the right amount of perspective and independence to push the changes necessary for organizational growth. >

There are always questions to deal with: Why did he leave in the first place? Won't he leave again? And what message are we sending to the rest of the organization if we hire him back? Some firms even have an unwritten policy to never hire former employees; people will then think twice before walking out, the wisdom goes. Obviously, such a policy — publicly stated or not — can backfire: It's never healthy to stay in a company just because you might be stigmatized as a traitor if you leave. Similarly, talent managers should avoid the Machiavellian temptation to bring someone back just to prove a point — sending some sort of message about the inevitable failure that those who leave will face until they return to the organization's "special" setting and culture. >

Potential emotional and organizational pitfalls are everywhere in this hiring scenario. So how can you successfully bring back former employees? >

(1) Check for fit. No candidate is good or bad in absolute terms; like anyone else, a rehired employee will succeed or fail depending on whether she's right for a particular role. If her skills properly match the challenges at hand, and if her temperament fits the culture, the chances of her succeeding are much, much greater. >

However, hiring managers will want to avoid two traps: assuming too much and investing too much. Research shows that "known" candidates — returning executives as well as executives promoted from within — often aren't assessed as rigorously as "unknown" ones. Hiring managers mistakenly assume they have enough institutional knowledge about the person; in reality, that information is from a different time and context, when the organization was facing different challenges. Additionally, in the case of returning colleagues, hiring managers sometimes oversell — investing too much of their efforts to attract a former colleague, the comfortable option rather than the best option for the business challenge at hand. >

Before bringing a former colleague back into the fold, hiring managers need to clearly define the position to be filled — the managerial tasks, challenges, and priorities, and the skills required. They need to conduct a disciplined assessment of the former employee — a series of well-structured interviews and proper reference checks. What were the conditions of his departure? An employee who left graciously will be gladly welcomed back; one who left less graciously will have a harder time, and should, in general, be avoided. >

Yes, it will be a bit uncomfortable to go through an impersonal and formal due-diligence process with someone with whom you've already worked. Yes, it will look almost impolite to suggest that the company "distrusts" someone who is humble enough to agree to come back. But a thorough, reliable assessment is of paramount importance. The consequences of failure for a returning employee can be extremely frustrating, for all involved: senior executives may incur the wrath of loyal insiders, some of whom had been passed over for promotion and all of whom may end up questioning management's judgment. And no employee enjoys the long, disappointing, emotionally wrought march out of the building — never mind when it's a repeat performance. >

(2) Support the integration. Once you are convinced that the former employee is fully qualified for the job, and better than the best potential internal and external alternatives, you should still prepare the ground for a soft landing — as you would for any new hire. >

- 1. Clearly communicate to the rest of the company, and particularly to those who would see themselves as potential candidates for the position, the reasons for the search and ultimately for hiring back the former employee.

- 2. Properly brief the returning employee about the current company situation (the organization's structure, goals, and critical processes) and deliver to the individual a very explicit mandate (for immediate priorities and objectives, and for long-term aspirations). Particularly when it comes to senior-level positions, it's important that the returning executive be given the time and resources to build (and rebuild) relationships.

- 3. Follow up, at least quarterly, with the returning employee. Monitor the level of organizational support she's getting, how relationships are (or aren't) developing, and so forth. Without these regularly scheduled check-ins, the returning employee may be reluctant to ask for help. >

Returning employees can be a valuable source of breakthrough ideas and performance excellence — but only if you follow a disciplined process for bringing them back into the fold. With the proper due diligence, the proverbial older children in your company will quickly embrace their prodigal siblings, and everyone will live happily ever after. Without it, well, have you ever heard the story of Cain and Abel? >

Claudio Fernández-Aráoz is the author of Great People Decisions. He is a senior adviser at global executive search firm Egon Zehnder International and a former member of its global Executive Committee.

See original post: http://blogs.harvardbusiness.org/cs/2009/10/should_you_rehire_former_emplo.html#

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http://dreamlearndobecome.blogspot.com This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.