The accounting firm Ernst & Young believes that employees who have resigned from the firm are very important to its future success. Many of these people rejoin the firm. In fact, on average, 25 percent of the firm’s experienced hires are “boomerangs” who left the company and then returned.107 The company even has a referral incentive program to reward former employees who send candidates to Ernst & Young. In addition to maintaining a directory of all of its former employees, Ernst & Young has a Web site dedicated to maintaining relations with them.108 The Web site contains job postings, news about former employees, and a social events calendar. In addition, the Web site contains information about key industry and business issues, and news pages with updates and firm announcements.
Do you think that it is a good idea for Ernst & Young to hire previous employees? Why or why not?
What would it take for the companies you used to work for to get you to reapply with them? What are some advantages and disadvantages of creating and managing this type of alumni network and Web site?