Scenario
When one of Santera Systems’ top engineers left the telecom
upstart for another hot tech company, CEO David Heard tried to
convince the employee he was making the wrong move. That engineer
should have listened. Heard’s former star showed up at Santera only
four months later looking for his old job back. Turned out his new
employer wasn’t so hot after all. “He came back, hat in hand, and
said ‘I made a mistake,’” says Heard.
You could call them prodigal employees—workers who leave in
search of greener pastures, only to return to the fold when things
don’t work out as planned. The tech meltdown and the unstable
economy have forced a growing group of newly displaced workers to
knock on their former employers’ doors.
Good people, however, are hard to find, and prodigal employees
should be welcomed back—if there is a position to fill. But it’s
not such a clear-cut decision for small businesses. Since employee
relationships tend to be tighter-knit at smaller firms, a company’s
productivity can easily unravel when the boss shows signs of
favoritism. In Santera’s case, CEO Heard felt rehiring the engineer
would harm his efforts to build a culture long on longevity and
short on greed. “Part of me thought, ‘Bring him back—he’s a smart
guy,’” Heard says, “but you don’t want to reward his behavior. It
doesn’t send the right message to the employees who stuck with
you.”
Small-company CEOs and managers must be extra sensitive to
their employees’ morale if they do decide to bring back a wayward
worker. Recruiting experts suggest lining up allies to be advocates
for the returning employee before—and after—his or her first day
back. That helps the rest of the team understand why the “ex” is
back home and helps the old newcomer feel more comfortable. They
also recommend giving the whole team a project to pursue
together.
In many cases, bringing back a former employee can be an
unexpected boon for a small company. Sterling Communications
executive Chris Corcoran was happy to rehire a qualified account
supervisor who had left months earlier for a dot-com that went
bust. He was pleasantly surprised to discover she came back with a
better understanding of business as a result of wearing many hats
at the tech company. “She had matured and become a much better
counselor to our clients.”
What would be the advantages and disadvantages of hiring a
former employee in larger organizations? In small firms?
How valid were David Heard’s concerns about the effect of
returning employees on the company’s culture?
At which level of the organization should the rehire decision
be made—supervisory, middle management, or upper management?