The costs of rehiring former employees

The talent we want is scarce on the job market. As such, we’re thinking of rehiring resigned employees, many of whom are open to the idea. Would you view this as the best and fastest solution? Please advise. — Gossip Girl.

The answer is “yes” in terms of being a tentative solution. It could be the fastest solution, but not necessarily the best. One answer is to implement a long-term program in parallel with hiring “boomerang workers,” aka former employees who want to return.

However, a long-term program requires systematic coaching and intensive training of current workers, so they become eligible for promotion when the right time comes.

But you’re right. In a job market where finding and retaining talent feels like trying to catch water with a sieve, the idea of rehiring former employees is a practical option. They know the company culture, you know their strengths (and weaknesses), and onboarding is quicker.

What could go wrong? Let us count the ways. Some are obvious while others are hidden. While hiring boomerang employees makes strategic sense, many organizations easily overlook the hidden costs and unintended consequences.

It’s crucial to look beyond the nostalgia and convenience and assess whether returning employees are truly the best fit today and in the future, not yesterday.

FUTURE PROBLEMS
Before deciding on hiring boomerang workers, take a good look at their resignation letters. What was the reason for their departure? Whether it was low pay, burnout, interpersonal conflict, dissatisfaction with management, or misalignment with the company’s direction, the reasons that made them leave truly matter.

If those reasons haven’t changed — or if the root issues were never addressed — they could easily resurface. Rehiring someone without resolving those issues is like rebooting a software program without fixing the bug. It might run smoother at first, but the glitch is still there.

Therefore, what are the things you should look into when hiring boomerang workers? Here are the major ones:

One, the morale of current employees may plunge. Imagine being the employee who stayed, took on extra work, and remained loyal through tough times — only to see someone who left waltz back in, possibly enticed with a raise or a better title.

Boomerang hires can breed resentment. Other employees may start questioning whether loyalty is valued. If the returning employee brings baggage or demands special treatment, it can further fracture team cohesion.

Two, returnees may not adjust to the new normal. Companies evolve. Strategies shift. Cultures mature. The organization the employee left months or years ago may no longer be the same place they once knew. Rehired staff often come back expecting familiarity, only to find new leadership, new systems, and new dynamics.

This can cause frustration on both ends, especially if the returning employees try to reassert the old norms or cling to “how we used to do it.” In some cases, they become vocal critics of the company’s evolution, slowing down progress rather than supporting it.

Three, a clash between fresh eyes and familiar habits. New external hires question old assumptions, spot inefficiencies, and bring in best practices from other industries. Boomerang hires, by contrast, tend to revert to their old, familiar routines.

They’re often resistant to change and can become protectors of outdated and wasteful processes. While experience is valuable, it can also become a trap if not accompanied by adaptability.

Four, boomerang workers that failed with their past employer. Are they back for the right reasons? Are they returning for convenience? Is the former employee excited to rejoin the team, or was the return the result of “greener pastures” that turned out to be carabao grass?

While there’s nothing wrong with realizing a past job wasn’t so bad after all, managers must be cautious of rehires who treat the company like a fallback option.

Five, rehiring complicates internal equity. One of the stickiest challenges in management is ensuring fairness, and nothing screams “double standard” like giving a returning employee a faster track to promotion or higher pay than peers who stayed and performed consistently.

Even if the returning hire is worth it, managers must navigate the situation carefully. Overcompensating to win them back could cause current workers to question their growth potential.

Six, legal and policy considerations. Rehiring may also require HR gymnastics, especially in organizations with strict policies around tenure, benefits, or retirement eligibility. Does the returning employee retain their prior seniority rights?

Are they subject to probation again? Why or why not? What about their unused leave or previous severance agreements? Without clear policies, managers could find themselves navigating a minefield of unintended consequences — or worse, legal liability.

Rehiring former employees isn’t always a bad decision, but it should not be automatic. Managers must evaluate not just the person’s track record but the context of their return. Sometimes the best path forward is tapping external talent while also nurturing current workers, minus their old habits. The bottom line?

A familiar face is comforting, but growth often lives outside the comfort zone.

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