Latest / Hiring & Firing with Fexingo: Recruitment, Performance, and Workforce Decisions / Why Boomerang Hires Outperform New Hires Every Time
Transcript
- Lucas: Luna, I want to talk about a kind of hire that most companies overlook until it's too late — the boomerang employee. Luna: You mean rehiring someone who used to work for you? That feels risky. If they left once, what's to stop them from leaving again? Lucas: That's exactly the assumption I want to challenge. Because the data tells a very different story. A LinkedIn study from late 2025 tracked over 20,000 boomerang hires across industries and found that they reach full productivity about 40 percent faster than external hires. Luna: Forty percent faster? That's huge. But is that just because they already know the systems? Lucas: Partly. But it's deeper than that. They know the culture, the unwritten rules, the shortcuts. They also tend to have stronger internal networks, so they can get things done without burning three weeks figuring out who to talk to. The same study showed boomerangs have a 30 percent higher two-year retention rate compared to someone brand new. Luna: Thirty percent higher retention? So they actually stay longer? Lucas: They do. And think about why. When someone leaves a company, they often leave for reasons that are fixable — a bad manager, a lack of growth opportunity, a salary gap. If those things change, they come back with a clearer understanding of what they're choosing. They're not blind optimists. Luna: So the act of leaving and coming back is actually a sign of informed commitment. I hadn't put it that way. Lucas: Exactly. And the cost savings are dramatic. Onboarding a boomerang costs roughly half of what you'd spend onboarding a completely new hire. You skip background checks, basic technical training, sometimes even benefit enrollment if they're rehired quickly. Some companies report saving up to ten thousand dollars per rehire. Luna: Ten grand per hire? That's real money. But what about the cultural hit? I've heard managers worry that rehiring someone sends a signal that leaving is no big deal. Lucas: That's a valid concern. But I think it depends on the narrative. If you frame it as 'we've fixed the problems that made you leave, and we value what you learned elsewhere,' it actually signals growth. Starbucks does this well. They have an official 'Starbucks Alumni' program — they actively recruit former partners back. Luna: Starbucks has an alumni program? I know a lot of tech companies do, but a retailer? Lucas: Yeah, and it's not just tech. Starbucks found that returning partners outperform new hires on customer satisfaction scores by about 15 percent. They already know the drink recipes, the store culture, the rhythm. Microsoft has a formal 'boomerang' portal where former employees can see roles and get a fast-track interview. Luna: Let's talk about the timing. When does a boomerang hire backfire? I imagine it's not always a success. Lucas: For sure. The biggest risk is if the reasons they left haven't actually changed. If they left because the CEO was toxic, and the CEO is still there, they'll leave again — probably faster. Another risk is resentment from current employees who feel passed over. I've seen cases where a returning manager gets promoted above people who stayed. Luna: That's a landmine. How do you avoid that? Lucas: Transparency is key. Have a clear policy. At many companies, boomerangs cannot get a higher title than when they left unless they've had a significant promotion elsewhere. Also, involve the team in the decision. If the team is excited to have them back, great. If there's resistance, it's a red flag. Luna: So what's the one thing you'd recommend for a company that wants to start tapping this pool? Lucas: First, build a simple alumni database. Use LinkedIn, former HR records — just a list of names with skills and why they left. Then, when you have a role, check that list first. Some companies even have a 'rehire bonus' for managers who bring back a former employee. Luna: A rehire bonus? That's clever. It incentivizes managers to maintain relationships even after someone leaves. Lucas: Exactly. And it changes the culture from 'once you leave, you're dead to us' to 'we hope you succeed, and we'd love to have you back.' That mindset shift alone can improve your employer brand more than any recruiting campaign. Luna: You know, this conversation reminds me that the best talent strategy often isn't about finding new people — it's about keeping the ones you already have, and welcoming back the ones who left for the right reasons. Lucas: That's a great way to put it. And if these conversations have moved your work forward in some small way, listener support is what keeps this show ad-free and independent. You can help at buy me a coffee dot com slash fexingo. Luna: Yeah, every little bit helps us keep digging into these topics. So back to boomerangs — let's talk about the metrics to track. Lucas: Sure. The key metric is 'time to productivity' — how many days until they're contributing at the level of an average employee. For boomerangs, that's usually 30 to 60 days, versus 90 to 120 for external hires. Also track retention at the one-year mark and the two-year mark. Luna: And how do you handle the awkwardness? The exit interview, the goodbye party, then suddenly they're back? Lucas: That's where alumni networks shine. Keep in touch. Send them a birthday email, invite them to company events, share news. That way it's not a surprise when they return. Salesforce does this really well — their alumni can access internal job boards and even get invites to product launches. Luna: So it's not just about rehiring — it's about maintaining a relationship from day one of their departure. Lucas: Exactly. And it's not a one-size-fits-all. For roles that require very specific industry knowledge, boomerangs are gold. For roles where you want fresh perspectives, maybe not. But as a tool in the kit, it's underused. I'd say at least 15 percent of all professional hires in 2025 were boomerangs, and that number should be higher. Luna: Fifteen percent? That's higher than I would have guessed. I'd love to see that number climb, especially if the data supports it. Lucas: Me too. And that's the thing — the data is clear. Boomerangs hire faster, perform faster, stay longer, and cost less. The only barrier is the cultural stigma. If companies can get past that, they unlock a powerful pipeline. Luna: Alright, I'm convinced. Next time I see a former colleague's resume, I'll take a closer look. Lucas: Do it. And if you're a hiring manager, start building that alumni list today. It might be the best hiring move you make this year.