Rehiring a former employee, often called a boomerang employee, can seem like an appealing option, especially when talent is scarce and the individual previously performed well. But welcoming someone back into your organisation also raises some considerations. 

There are benefits and risks of rehiring, what you should investigate before making an offer, and how to handle continuity of service and entitlements.

 

The Case For Rehiring Former Employees

If an employee was highly regarded during their previous term of employment, they might look like a “safe bet” compared to new applicants. But are they?

These are the following potential advantages of rehiring a former employee: 

  • The applicant knows about the organisation, its culture, and how it works – so less on-the-job learning is required. 

  • The person has formed a high enough opinion of the organisation to want to work there again. 

  • If most of the previous management team and/or co-workers are still there, and the employee previously left on good terms, it is likely those good terms will continue. 

  • Since leaving, most employees will have gained experience working for other organisations, maybe even competitors. This may provide a couple of advantages: a) Good ideas, practices, and insights gained through other employment, and b) they are in a better position to evaluate the merits of your organisation as an employer compared to others. 

  • They may have left previously because of dissatisfaction with some issues, but now realise your organisation is not so bad after all. 

 

The Case Against Rehiring

The main thing to remember is that in many cases the previous employment relationship ended because one or both parties were not completely happy with how things were. There are exceptions; for example, if the employee resigned to raise a family or to relocate overseas or interstate. However, whether there is a case against rehiring largely depends on whether the circumstances that contributed to the previous departure still exist. 

This requires the recruiter to investigate the following issues: 

  • What was the employee’s real reason for leaving previously, e.g. dissatisfaction with job content, pay, career opportunities, management style, organisation culture, etc? Have these issues been addressed since then or do they still apply? 

  • Is the employee’s reason for leaving likely to recur? See further discussion below. 

  • What did the employee’s managers say about their performance and conduct? Have they indicated they would be happy to rehire the person? 

  • How has the organisation changed since the employee last worked there? What does the degree of “fit” (both cultural and job-wise) now look like? 

 

Questions to ask during the recruitment process 

Equal opportunity legislation requires all applicants to be treated equally, so previous employees should not receive any preference in hiring, other than based on merit compared to other applicants. 

However, it is recommended that the recruiter explore the following questions with an ex-employee who reapplies after having since worked for other organisations: 

  • Why do you want to leave your current job? Check for similarity with reasons for leaving your organisation previously, as it may indicate a likely recurrence. Also, check for any pattern of job-hopping since previously working for your organisation (as you would for other applicants as well). 

  • Why have you changed your mind about working for this organisation? What is now different from last time? 

  • When you previously worked here, the following issues arose (describe them). How would you deal with similar issues now? 

  • When you resigned previously, you gave the following reasons (list them). What is your position regarding each of these issues now? 

  • If we rehired you, what would you do differently this time around? What extra can you now bring to this organisation? 

  • What have you learned about working for our organisation from your experiences working for others since then? 

Before making a hiring decision, you should also contact managers and co-workers who previously worked with the applicant for their views about rehiring them. If there are any reservations, particularly where the applicant could be working with them again, explore the situation thoroughly.

Also, review previous records such as performance reviews and exit interviews and assess how the organisation culture has changed since the applicant last worked for your organisation. 

 

Previous entitlements do not apply 

If rehiring someone, make it clear to them that entitlements to leave, superannuation, and other service benefits start from zero again. There are no accruals carried over from previous employment in most cases, although there may be exceptions where the gap between employment periods is very brief, or where a court/tribunal decision has ordered the employee to be rehired. 

 

Final Thoughts

Rehiring a former employee can be an excellent strategic move. One that reduces hiring costs, accelerates productivity, and enriches the organisation with new ideas. But it also requires due diligence. The key is to balance the familiarity and convenience of bringing back a known quantity with the same careful assessment applied to any external hire.

With clear policies, thorough investigation, and realistic expectations on both sides, ‘boomerang employees’ can become some of an organisation’s most successful hires.