Tag Archives: employee management

Best of The Blog- Should You Ever Rehire An Ex-Employee?

When you rehire an ex-employee, especially one that was a star, it looks like you are getting a great deal. What you see is what you get. They understand your business and its own unique culture, are immediately productive and bring industry knowledge and new ideas.

Everyone loves a good throwback article, which is why we’re hopping in our time machine to bring you back some of the biggest and best Procurious blogs. If you missed any of the golden oldies, look no further!

This week, we’re revisiting an article by Elaine Porteous who explains why organisations must be very cautious when considering whether to rehire employees. 

The best-case scenario is when an employee wants to return because he has had time to learn new skills and has gained in-depth work experience somewhere else that he can share with you.

The good news about rehiring top performers

Rehiring former employees often costs much less than hiring from scratch, especially since you can cut out the extremely costly recruiting and interview process. When budgets are tight, you can explore this avenue using social media, alumni groups and word-of-mouth to find out who is actively looking.

The potential rehires, also known as boomerangs, are easier to assimilate into the organization and you will save you orientation time. The thinking is that since they know exactly what they’ll be signing up for, they will be likely to stay longer the second time and therefore be less risky, more productive and better for your retention statistics.

There’s also some thought that a rehired person can provide you with a fresh perspective, innovative ideas and some industry intelligence.

So what can go wrong? Quite a lot

Not all former employees are worthy of rehiring. Let’s hope they left for the right reasons and of their own accord. Obviously, you will exclude anyone who was fired, incompetent or unproductive or suddenly has accumulated a criminal record.

Here are a few of the main disadvantages of rehiring former employees:

  •  Current managers and co-workers may feel threatened if the employee returns with a new set of skills, and especially irritated if they come back onboard with a higher remuneration package, which is quite likely. They may feel an employee already had their chance.
  •  The reason that they left in the first place may still be a problem: the boss from hell, lack of benefits, poor promotion prospects and/or lack of opportunities to learn.
  •  There may be unintended consequences if the rehire is appointed at a higher level than his previous role. It may trigger other departures if promotional prospects are blocked, i.e. waiting to fill “dead man’s shoes.”
  •  Returning employees may just not fit in. The climate and culture of the company may no longer be the same. In this case, their new presence may be disruptive and cause tension.

Develop a rehiring policy

A definite success factor is having a firm policy that is applied fairly to all potential “Comeback Kids.” Who is eligible to be rehired should be agreed upon internally and be legally defensible.  Two important elements to include are how long after leaving an employee can return, and  what’s a reasonable maximum time to be away.

In some industries, some employers also refuse to rehire an employee who left to go to a competitor. Other organizations may welcome the broader experience and give preference

to ambitious ex-employees who went off to try their hand at consulting or starting their own business.

Booz Allen Hamilton, a leading U.S. consultancy, is such a staunch believer in rehiring that it sponsors a Comeback Kids program, through which it actively reaches out to past employees and those from the military.

A few more things to consider when rehiring

  • Make sure the conditions that caused that person to leave are not still barriers. Exit interviews are notoriously unreliable. so it’s best to work out why the employee really left. If he undervalued the company before, has anything changed?
  • Is this person really the best candidate for the job? It should not be a quick fix — don’t take the lazy recruiter’s solution.
  • Are you overlooking quality internal candidates? Someone else internally might be just as qualified to do the job. Think about the message you’re sending and the possible repercussions of rehiring instead.

Don’t forget to brief the new employee on how things have changed since he left and any new projects that have come up since.  A “welcome back” interview shows that your company is open to hiring the best people, whatever their job history.

Would you rehire a great former employee? Let us know by commenting on the story below.

The Carrot and Stick Approach to Open Booking

Open booking is a massive problem for organisations globally, and one of the largest compliance challenges facing procurement.

Open Booking

In the US, over 50 per cent of hotel bookings, and 24 per cent of airline bookings occur outside the parameters of corporate travel programmes. The issue costs organisations $36 billion per year, and is one of the largest compliance challenges for procurement.

But what can be done about it?

Travel Management

Ethan Laub knows travel software. He founded a startup called TripScanner, a travel booking system giving clients the ability to book on any travel website while achieving compliance with their organisation’s travel policies. His startup was acquired by Coupa in mid-2015, and Laub now works at Coupa as a Director of Product Management.

Here at Coupa Inspire, Laub is running a session on open booking. Most of the audience members manage travel in some fashion, and all of them are frustrated by compliance issues. The consequences of open booking are potentially very serious. According to Laub, it can effect:

  • Risk management: if there’s an emergency, you need to know where your employees are and be able to contact them immediately.
  • Sourcing: open booking hampers procurement’s ability to negotiate discounts with travel providers.
  • Policy: making sure people are spending smart and within budget.
  • Visibility: not having any data on travel spend, hampering your ability to make decisions. 

What drives open booking?

Laub asks for a quick show of hands on why people would decide to avoid the corporate travel system. The top five reasons are:

  1. Better Deals: employees who claim they “got a better deal” outside the approved system.
  2. Conference Booking: conferences with hotel discounts where bookings must go through the conference portal.
  3. User Experience: people are increasingly confident in booking personal travel and are unfavourably comparing the quick and easy experience with clunky corporate travel booking.
  4. The Sharing Economy: people preferring to use companies like Uber and AirBnB, often unavailable on the corporate site.
  5. Airlines and Hotels Pushing Direct Bookings: otherwise individuals can’t claim loyalty points, free Wifi, or other perks.

What’s the solution?

Having established that open booking is a serious issue, and explained why people are avoiding company travel sites in droves, Laub recommends travel managers take an approach that best suits their organisation’s culture.

Stick Approach

  • Prohibit open bookings and refuse to reimburse.
  • Flag out-of-policy post-bookings.
  • Escalate repeat offenders to managers.

Carrot Approach

  • Improve User Experience

Over the past 10 years, consumer sites have become increasingly user friendly, while the policy-focused corporate booking tools haven’t kept up. There are a lot of attractive, easy-to-use applications on the market that can improve UX for your site. Some tips:

  • Ensure you have as few steps as possible
  • Explain to travellers why things are the way they are (policy)
  • Communicate the realities of the travel program.
  • Nuance the site to enforce your policies behind the scenes: users shouldn’t be able to see the out-of-policy options
  • Show fare comparisons to prove your negotiated fares are the best option.
  • Reward savings

If the employee comes in under their travel budget, the company shares half of the savings with the employee. This can be considered part of the gamification process of employee management.

  • Clear guidelines

Ensuring that you have clear guidelines for your employees is key. Employees need to understand when it is okay to book outside of the system, and when they need to be following process.

What does the future hold for business travel management?

Check out this video from Coupa that shows the exciting future of corporate travel artificial intelligence. This system anticipates all of your needs and is so intelligent that you’ll fall in love with it – in the case of this hapless user, literally!