Embrace alumni hiring to save money, boost productivity

In 2025, staying connected with ex-employees offers a host of benefits, writes Sonia Lynch.

“Life is a series of hellos and goodbyes,” as legendary US singer-songwriter Billy Joel observed 50 years ago in Say Goodbye to Hollywood, the opening track from his Turnstiles album.

Over the ensuing decades, it’s certainly become a truism, from a business and HR perspective. In today’s times, the concept of a job for life – very much the norm in a host of industries and professions back in the seventies – has all but ceased to exist. Instead, individuals move between employers and occupations on a regular basis in search of opportunities, advancement, and increased remuneration.

Some 2.1 million Australians left or lost a position in the year ending February 2024, according to job mobility statistics released by the Australian Bureau of Statistics in July 2024.

Over half of the 14 million people employed in January 2024 had been in their current jobs for less than five years. Nineteen per cent had been in their jobs for less than 12 months, while just 10 per cent had stayed put for 20 years or more.

Good luck and goodbye (for now)

“All the best and stay in touch” – these phrases are commonly uttered to outgoing employees who depart on good terms. While the sentiment may be sincerely meant, many businesses and business leaders don’t make an effort to maintain contact.

That’s to their detriment. As a clutch of multinational organisations are aware, an engaged “alumni workforce” can be an extremely powerful asset. For the likes of Deloitte, KPMG, and PwC, along with many household name software vendors, it’s very often their first port of call when a new role emerges, or additional resources are needed for a client assignment.

Hiring from a pool of already familiar candidates can be faster, cheaper, and safer than the alternative – advertising vacant roles on the open market and hoping qualified candidates decide to apply.

Bringing back an old hand means taking on a known quantity, not running the risk of hiring someone who presents well on paper and in interview but who subsequently turns out to be a poor fit for the firm.

It can also be a significant source of savings. Citigroup’s global head of alumni relations estimates the firm saves between US$50,000 and US$75,000 each time a member of its alumni network is rehired.

That’s why these top-end-of-town businesses have invested serious sums in formal alumni programs that enable them to stay connected with high performers who’ve exited their employ amicably.

Registering their details and reaching out to them on a regular basis makes it possible to keep track of their career progress. Then, when suitable opportunities arise, they can be contacted directly.

Bringing the best performers back

It’s a strategy that can be every bit as beneficial for small and mid-sized players, including those whose workforces are largely comprised of unskilled, semi-skilled and casual workers.

Retailers that require temporary staff to cover seasonal events such as Christmas and mid-year stocktake sales, for example, can save time and money by rehiring former workers, rather than drafting rookie recruits who’ll take longer to get up to speed with their products and processes.

Infrastructure and construction businesses whose activity levels wax and wane as projects come online and are completed can find it a smarter, faster way to get the (steel-capped) boots they need on the ground, too.

Establishing a formal alumni program may not have been on the agenda for such organisations in the past – if considered at all, it’s likely to have been viewed as an unwonted expense – but the rise of digital technology makes doing so straightforward and affordable.

Automated HR software can be harnessed to summarise exiting employees’ skill sets in easily searchable form, obtain their permission to contact them before they sign off for the final time, and then disseminate regular communiques once they have. It’s enabling technology that allows smaller players to avail themselves of the same benefits of alumni hiring their larger counterparts have long enjoyed.

Investing in your greatest asset

Whatever the nature of your business, an engaged, high-performing workforce is your greatest asset. Hiring people who are a known quantity – trustworthy, motivated former employees who’ve already proven their worth – is an unparalleled way to augment your team while reducing recruitment and onboarding costs. By investing in human resources technology that makes it easier to tap into the talents of your alumni workforce, you’ll be setting your organisation up for success in the years to come.

Sonia Lynch is the HR director (ANZ) at Dayforce.