Rehiring Former Employees: What You Need To Know

Recently, the pandemic-era craze known as the “Great Resignation” has begun to give way to another cultural trend—the “Great Regret.” A six-country study revealed that 43% of employees who left their positions during the pandemic now feel they would’ve been better off staying put.

The study also found that nearly one in every five have since returned to the companies they left behind. But should your organization consider rehiring former employees? If so, what should the hiring process look like the second time around?

These are the questions we’ll answer as we explore the potential pros and cons of rehiring previous employees. We’ll also provide tips on the types of questions to ask past employees who are interested in returning to the fold.

Here’s what you’ll learn in this article:

• Understanding rehiring
• Pros and cons of rehiring
• Evaluating former employees for rehire
• Interviewing rehires vs. new employees
• The rehire onboarding process
• Best practices for successful rehire
• Rehiring remote previous employees

Understanding rehiring

The newly coined term “boomerang employee” refers to employees who leave their jobs only to be rehired by their former employer at a later date. But when an employee returns in search of work, many employers find themselves facing a different set of questions than they do with new hires.

For this reason, many companies are now developing specific procedures for the rehiring process. If you haven’t already done so, you may want to create rehire policies to keep everyone on the same page.

Later, we’ll explore strategies you can use to help your company outline its ideal rehiring process. But first, let’s start with an overview of the potential perks and downsides to rehiring previous employees.

Pros and cons of rehiring

Should you go with an old familiar face or a fresh new hire from LinkedIn? Let’s start with broad considerations to keep in mind as you begin your journey to find out.  

The potential pros of rehiring

Rehiring a former employee can often turn out to be a great move, one of several good approaches for cost-effective hiring. Some companies even actively reach out to former employees they feel might make a good fit for a newly open position. A best-case scenario rehire can come with the following benefits:

• Familiarity. Today’s talent pool is so diverse that it can be hard for employers to hone in on the right prospects. Proven knowledge of a former employee’s skill set and work ethic can drastically decrease the odds of making the wrong hiring choice.

• Reduced talent acquisition costs. According to research from SHRM, many employers estimate that the cost of recruiting and onboarding a new employee can cost three to four times the position’s annual salary. Rehires typically take far less time to train and are already familiar with the company culture, meaning you can keep costs low.

• Company morale. The return of a well-regarded employee is often exciting news for their old work friends. Rehiring actions can also help show current employees that the company cares about their long-term potential.

• Fresh perspective. An employee who left to accept a more advanced position often returns with new skills and fresh ideas. Remain open to any helpful insights or ideas they bring to the table.

• Renewed enthusiasm. A previous employee’s excitement to return to their old company can be a good sign that they appreciate what it has to offer. Their time working elsewhere may have helped them notice perks they had previously taken for granted.

Potential cons of rehiring

In a perfect world, every rehire would come with all the benefits we covered above. Unfortunately, reality sometimes is different from expectations. Here we’ll explore the possible downside as we examine the issues that can arise when rehires go wrong.

• Familiarity bias. While hiring an employee you already know can be tempting, it's important to make sure they’re really the best fit for the job. You may miss out on the chance to work with more qualified top talent if you hire an old employee just because it’s easier.

• Readjustment. Rehires may take less time to train, but that doesn’t mean they and the rest of your staff won’t need a readjustment period to function as a successful team. Some rehires are able to catch on relatively quickly, while others are far more thrown by the changes that occurred during their absence.
• Interpersonal issues. Some grudges die harder than others. Make sure no lingering resentments exist between your rehire and current employees that could result in team turbulence.

• Lack of enthusiasm. If an employee returns out of necessity, they may run the risk of falling into complacency. Understanding their motivations can help avoid mismatched expectations.
• The retention question. There’s always the possibility that a former employee is looking for a holdover job until the next opportunity comes along. Discussing their long-term career goals can be incredibly helpful.

Evaluating former employees for rehire

Before even considering a former employee for an open position, you should find out why they left in the first place. If you’re unfamiliar with their company history, you might start by contacting your human resources department.

HR professionals can usually shed light on whether an employee is even eligible for rehire. Human resources should also have a copy of the employee’s exit interview, which will likely contain some major clues.

Be sure you speak to the employees' former superiors to get a better idea of whether or not they left on good terms. You may even consider mentioning the possibility of the employee returning to their old team members. Prying questions aren’t needed, as initial reactions will often tell you everything you need to know.

If you discover that the former employee was fired or was known for poor performance or inappropriate behavior, then bringing them back is likely a bad idea. Aside from the possibility of setting yourself up to deal with the same issues, you also risk affecting morale by sending the wrong message to current employees.

Rehiring employees who left on good terms

If you discover that the employee was laid off through no fault of their own or left to accept a new job, then it’s certainly worth continuing your investigation. Regardless, it’s still important to understand their motives for returning.

Are they eager to return to an old role they lost due to temporary layoffs? Or do they feel they can bring a fresh perspective to a new role that better suits their skill set?

Yet another possibility is that they’re simply willing to settle for their old position because they feel it’s their only option. Their past work ethic and enthusiasm should give you some clues, but asking them to come in for an interview will go a long way toward filling in any gaps.

Interviewing rehires vs. new employees

The interview process you use with returning employees is likely to differ from what  you use for first-time hires. But you’ll still need to sit down and have an open and honest conversation before moving forward.

A well-structured interview can clarify both why the employee left and why they want to return. It also offers an opportunity to discuss any hesitations that they or you may have.

Depending on how long it's been since the employee left, you may also want to take the opportunity to fill them in on any company updates. For instance, if there’s a chance they’d be reporting to an old colleague who once reported to them, you’ll want to make sure they’d be comfortable with the situation.

In addition, update them on any major shifts that have occurred since they’ve been away. Whether you have a new major client or changes in company policy, the goal is to give them a thorough picture of your company now and explain how they would fit into it. Of course, you’ll review roles, responsibilities, salary, perks, and other considerations, rather than allowing the employee to make assumptions tied to the former situation.

Top interview questions for potential rehires

In some instances, a potential rehire may have as many questions as you do about whether your company is still a good fit. Asking the right set of interview questions can help both parties find the answers they need.

Planning out a specific and tailored set of questions beforehand makes the interview process more effective than starting with a casual conversation from past familiarity. Structuring this process fairly can also help avoid simply assuming the employee will be rehired.  The exact questions you’ll want to ask will vary depending on the circumstances.

For instance, a major corporation would likely ask very different questions than a small business. Consider these general questions with tailoring to fit your own needs:

• Why did the employee leave? Would the reasons they left still be a factor in their decision to return?
• What have they been up to since they left? How was their experience working for another company?
• Have they gained any new knowledge or skills that could be useful in the position they’re applying for?
• What motivated them to consider returning? If they’re applying for their old job, is there anything they hope will be different?
• What are they looking for in this new opportunity?
• How do they hope to grow with your company?
• Are they comfortable with the salary and benefits you’re able to offer?

Additionally, be sure to give the employee an opportunity to ask you any questions they may have. You’ll want them to have a clear idea of what the open position entails and whether or not it aligns with any goals they may have for advancement.

Ensuring you’re on the same page will give you both a much better idea of whether or not rehiring is worth moving forward. A shared understanding can also increase the odds of long-term retention if you decide to bring them back on board.

If your business or the employee’s needs have changed, you might be considering hiring someone who once worked onsite to now work remotely, at least part time. Fashioning your assessment to include specific remote interview questions will help determine whether this work approach is a good fit.

The rehire onboarding process

If you decide that a boomerang employee is indeed the best fit for the role, it’s time to make your offer. While the interview process tends to be different for returning employees, the onboarding process is far more similar to the one used for new hires.

If you work for a larger corporation, start by issuing the employee a formal offer letter. If they accept the position, they’ll also need to fill out the same paperwork and tax documents as new employees to make sure everything is up to date.

Additionally, be sure to run the same background or criminal checks as you do with any other new hires. While hopefully you won’t find any concerns, you’ll save yourself from potential negligence claims if unexpected surprises do arise.

If your company offers a new hire orientation, it’s also a good idea to have returning employees go through it along with everyone else. The orientation will give them a great refresher on any company policies they may have forgotten, as well as any new ones that have been enacted.

If a rehire is returning to work in a new position or department, they’ll also need the opportunity to get familiar with the expectations of the role and ask any questions they may have. Never assume that an employee will be ready to hit the ground running just because they’ve worked with your company before.

Even if the employee is returning to their old position, allow adequate time and a structured process for training or retraining.

Best practices for a successful rehire

Once a former employee has been rehired, attempt to make their readjustment as easy as possible. These tips and best practices can help ensure a smooth rehiring process:

• Keep things positive. Clear up any lingering negative feelings about their leaving, preferably before making your offer.
• Make sure your rehire has a clear understanding of their new job description and how to carry out their duties.
• Be careful not to treat rehires differently than any other new employee due to their previous company experience.
• While fresh insights are always welcome, never put a returning employee in an awkward position by requesting information about the company they worked for after leaving their earlier position with your organization.
• Don’t forget about any future goals and career development desires the employee revealed during the interview process. Do your best to help them stay on track by presenting them with any relevant opportunities.

With the proper approach, rehiring former employees can come with plenty of benefits. The key is to avoid making assumptions about a boomerang employee’s potential for an open position just because they’ve worked with your company before.

Take the time to do your due diligence into why they left, their motivation for returning, and whether they’re the best fit for the opportunity. By being thorough upfront, you’ll increase the odds of making the right decision on a case-by-case basis.

Rehiring remote previous employees

The employment landscape is rapidly changing, making it possible to rehire previous employees even if they’ve moved to a different geographic location. If you’re interested in exploring hiring a new or previous employee for a remote position, be sure to check out Upwork’s Any Hire solution.

Any Hire makes it possible to hire anyone, anywhere as either an employee or an independent contractor. Learn how to hire a freelancer on Upwork. Check out our case studies to find out more about how Upwork helps companies connect with top talent with the skills needed for a wide range of business needs.