Sometimes “good-bye” shouldn’t really mean “good-bye.” That's especially true when it comes to valued former colleagues. Rather, many companies prefer to stay connected with departing employees. Creating a corporate alumni network based on lifelong relationships can benefit both the company and its former employees.
Consulting firms have long made it a practice to network with former employees. At McKinsey. for example, the motto is “Once McKinsey, always a part of the McKinsey family.” Smaller companies have joined the growing movement of building corporate alumni networks. They are offering programs that promote and nurture the ties between companies and their former employees.
And why should a company maintain alumni engagement? There are several good reasons, among them creating brand ambassadors and promoting new business development. And sometimes the best new employees are former employees – so-called boomerang employees.
In government contracting, there's often movement of workers between the public sector and private sector firms (and back again). This revolving door of knowledge and talent creates opportunity for the employees. It also establishes a pool of successful alumni from which a company can recruit.
Of course, the term “revolving door” can also have a negative connotation. It can describe the practice of public officials or employees abandoning public service for lobbying activities. Or perhaps they seek employment as a government or military contractor. As a defense contractor dedicated to supporting our military and its war fighters, SDV International is scrupulous. It will not compromise confidential information when the revolving doors between public and private sectors are spinning.
In this article, we'll look at corporate alumni programs and the value of companies maintaining long-term relationships with former employees. We’ll also share some of our experiences with “comeback colleagues” here at SDV International.
What is a corporate alumni network?
A great deal of time, effort, and expense goes into recruiting, hiring, training, and then retaining the best employees. And when all that talent and training walks out the door, a company’s executives might feel betrayed.
But look at it another way. All that training and talent is going out into the marketplace where it can actually be an asset to the former employer. This is especially true if those ex-employees talk about their experience. They may tout the training, development, and coaching opportunities offered by their former company.
Alumni networks can take several forms. Ex-employees themselves can form independent “grassroots” associations. These organizations help them stay in touch with current and former colleagues, using platforms like Facebook groups and LinkedIn.
In 2016, it was LinkedIn’s founder, Reid Hoffman, who recognized the organizational value of corporate alumni. He co-wrote a book, “The Alliance: Managing Talent in the Networked Age,” with entrepreneurs Chris Yeh and Ben Casnocha. A couple of years later, Deloitte released its annual business transformation report. It includes recognition that "the employee experience doesn't end at the exit interview."
Today, many large private sector consulting firms have company-supported or company-run alumni programs. McKinsey is proud of its more than 40,000 alumni who have gone on to successful careers at other companies. Some have started companies of their own. The Accenture Alumni Network website has more than 300,000 registered members and active alumni programs in 78 countries. The global management consultant firm Bain has a worldwide alumni community more than 20,000 strong.
Among the activities of the alumni networks are maintaining an alumni directory and hosting social events. Some provide career advice and assistance, raise funds for sponsored nonprofits, and allow access to company trainings.
There are costs associated with running a corporate alumni program. These include hiring personnel to staff it, establishing a platform, and creating programming. But, as we will see later, companies with formal alumni programs get a return-on-investment that makes the juice worth the squeezing.
The SDV approach
SDV International doesn’t yet have a formal alumni program like those described above. But we do recognize the value of our former employees.
Two of the many things that attract people to our company are our close-knit culture and our commitment to our people. Over the past 14 years, SDV International has hired and then rehired more than 30 individuals. Some are developers, coders, and managers. Some have other positions. That number may not sound like a lot, but we are still a relatively small but quickly growing organization.
SDV currently has three people on the development side who previously worked with the company in different capacities. We also have employees who went from government work to SDV International and back to government. (That's the so-called “revolving door phenomenon.”) We mostly rehire employees after they explore opportunities with other companies. They want to return to take on exciting new technology projects and to work with a highly supportive team.
Actually, a better term than “revolving door” is “positive feedback cycle.” Consider a young employee (e.g. a recent grad or intern) looking to expand. The company would be failing at leadership if that person did not move on for growth purposes. People new to the workforce should experience different environments and cultures. They should work in both the public and private sectors to establish a diversity of experience.
However, our company wouldn't have done a good job of leadership if that person didn't have a positive view of their experience with SDV. We welcome them to return if the right opportunity arises. It’s sort of like the quote by Albert Schweitzer (or, depending on your source, Selena Gomez. “If you love something let it go. If it comes back, it was meant to be; if it doesn't it never was.”
Benefits of an alumni network
The end of the employment relationship has traditionally been marked by an exit interview and a “thanks for your service.” But now, companies are reframing the exit process as an opportunity to extend the relationship, rather than end it.
Some benefits are tangible — an improved career trajectory, for example. Some are intangible, such as positive word-of-mouth about a company. It’s the mutually beneficial nature of alumni networks that makes them valuable.
Benefits for companies
Earlier, we mentioned return-on-investment. Research has found that alumni networks are good for the bottom line.
According to IDC, a research group, 72 percent of former employees would happily return to the company they left. Boomerang employees reduce the time it takes to fill positions by half. They’re also 32 percent more likely to recommend the company to other potential recruits. This makes them excellent recruiting targets, especially when filling senior positions.
Employees return to companies that provide a positive employee experience in terms of cultural, technological, and physical environment. So says Jacob Morgan in his book, “The Employee Experience Advantage.” Such companies have 40 percent lower turnover, 1.2 times the average revenue, and 4.4 times the average profit. Other benefits:
Talent acquisition. In a tight job market, companies may need more flexible hiring practices. It typically takes about 42 days and costs about $4,000 to hire a new employee, according to the Society for Human Resource Management. Organizations that are open to hiring boomerangs stand to save significant time and resources in attracting candidates and socializing new hires.
Brand promotion. Almost everything that makes current employees good brand ambassadors applies to ex-employees as well. These former workers know your business and your customers. They know what type of person you’re looking to hire. Engaging with them on social media and creating opportunities for them to interact will let them know you still value their opinions.
Business development. Perhaps alums become potential customers at their new company. Since they already know the products and services offered by their former employer, they are further along in the sales process. They also might refer new customers.
Outside perspective. It’s always beneficial to see one’s company as others see it, and to understand its products and projects. Alumni who go on to work with other companies in the same industry can be a valuable source of such perspectives (without violating their company’s proprietary information).
Pride in alumni achievements. The HR team at Boston Consulting Group (BCG) recently launched an awards program to celebrate the accomplishments of its alumni. Alums are even asked to present at regional staff meetings, during which they give current employees an inside look at career paths and successes. (And you knew them when!)
Benefits for employees
Employees who leave their companies on a positive note are an easy sell for an alumni program. It’s natural to want to stay connected with current and former employees. And additional benefits like career assistance, mentoring, alumni directories, events, and perks will keep them engaged. One day they may find themselves boomeranging back.
Benefits for employees include:
Networking opportunities. This is an age in which people switch jobs with ever greater frequency. (Millennials move to new positions every 2.8 years, on average.) Employees’ ability to network and to maintain ties with former colleagues creates opportunities and provides a sense of connectedness and stability.
Career development. As mentioned earlier, some corporate alumni programs provide mentoring and access to company training that may even lead alumni to new jobs or back to their old companies.
Social interaction. Community service projects and happy hours are ways in which businesses engage alumni.
The power of connection
Relationships make the business world go ‘round. Nowhere is this truer than in the world of defense contracting. That world is largely based on trust and on an understanding of the mission to support the war fighter.
A corporate alumni program — whether it’s an organized network or less formal like ours at SDV International — gives a company reason to stay in touch with its former employees. Those former employees can provide a valuable resource for recruitment and business development. And when the time and the opportunity are right, some of those former colleagues may seamlessly slip right back into the company in new roles. This enhances the company’s services to its government clients. And it produces better bottom-line results while (not incidentally) propelling employees to a brighter future.