The current job market is tighter than ever, with trends like The Great Stay making for a smaller talent pool and fierce competition between candidates. Given this shift, one hiring strategy is making a remarkable comeback: boomerang hiring, which refers to rehiring former employees, often referred to as “boomerang employees.” Boomerang hiring has surged in popularity across various industries, and for good reason.
At Dahl Consulting (DAHL), we recognize the value of leveraging this trend, particularly in today’s uncertain economic environment. In this article, our experts will cover what boomerang hiring means, why it makes sense in the current labor market, how staffing firms can help you leverage boomerang hiring, and what this all means for talent acquisition (TA) teams.
What is Boomerang Hiring?
Boomerang hiring involves rehiring former employees, allowing organizations to capitalize on workers who already understand the culture, systems, and expectations of the business. A recent report from ADP highlights that while boomerang workers make up just 2% of active employees, they account for nearly a third (31%) of new hires. This rising trend is a result of several factors, including economic uncertainty and the difficulty of finding new talent in niche sectors.
Why Boomerang Hiring Makes Sense in Today’s Market
Boomerang workers sufficiently address employers’ need for cost-effective and low-risk hiring solutions. These employees often require less onboarding time and bring the benefit of their previous experience with your organization. For staffing firms, boomerang hiring can be an efficient way to fill roles with qualified candidates who already understand the company’s culture and needs.
Some sectors are seeing particularly high rates of boomerang hires, including:
- Information: 68% of new hires
- Education: 55% of new hires
- Finance & Insurance: 39% of new hires
- Natural Resources: 36% of new hires
- Leisure & Hospitality: 35% of new hires
For industries with high turnover or difficult-to-fill roles, these numbers are even more significant. Boomerang workers can help address skill shortages without the high cost of recruiting and relocating new talent.
How Staffing Firms Can Help You Leverage Boomerang Hiring
At DAHL, we understand the importance of providing top talent you can rely on. Staffing firms can seamlessly capitalize on the boomerang hiring trend, providing clients with experienced talent for hard-to-fill roles. Here is how:
Access to a Pool of Pre-Vetted Talent
Staffing firms have access to a vast, diverse talent pool of former employees who already know the work environment, procedures, and expectations, which means less time spent on training and integration. Staffing agencies can help connect businesses with these returning workers, cutting down hiring timelines and onboarding costs.
Faster Ramp-Up Times
Rehired employees can hit the ground running, reducing downtime and allowing companies to maintain productivity levels. This makes them especially valuable in industries facing skill gaps.
Cost-Efficiency
Boomerang hires are typically less expensive than bringing in new talent, as they require fewer resources for training and integration. Staffing firms can offer a streamlined hiring process that saves businesses time and money.
Filling Scarce-Skill Roles
Many businesses are struggling to fill highly specialized roles. Boomerang employees who already possess these skills can be a valuable resource, saving employers the time and effort of a lengthy search. Plus, staffing firms often already have access to talent with the skills you’re seeking, expediting the process even further.
Navigating Corporate Hiring Freezes
Using a staffing partner’s payrolling services can help you navigate corporate hiring freezes by allowing the firm to serve as the employer of record (EOR). As the EOR, staffing agencies like DAHL manage all administrative and compliance responsibilities for payrolled consultants, including onboarding, payroll, benefits, tax withholdings, policy enforcement, and third-party vendor coordination, so you can keep projects moving forward without increasing your official headcount. This means you can continue utilizing temporary employees, retain key talent you don’t want to lose, or even bring back former team members (boomerang employees), all while staying within hiring freeze limitations.
What Does Boomerang Hiring Mean for Talent Acquisition Teams?
For TA teams, the emphasis should shift toward mining the alumni database. By reaching out to former employees, staffing firms can uncover a hidden pool of talent that may be more invested in open roles due to previous experiences within the company.
As Nela Richardson from ADP points out, recruiting workers who already know the culture, the systems, and the people reduces the amount of time spent on initial training and results in faster onboarding. Additionally, she notes that many previous employees who left for “greener pastures” may have realized that the opportunity they pursued was no better than what they had before. This makes a boomerang employee a safe, reliable hire. Lastly, in times of economic uncertainty, returning to a familiar environment can feel like a safety net for workers. Boomerang employees may feel more secure about moving back to a company they previously worked for, rather than a new company altogether.
Looking Ahead: Why You Should Stay Ahead of the Boomerang Trend
In late 2024, the mobility rate of workers dropped to a record low. The voluntary quit rate for employees in the U.S. fell below 2% for the first time since 2015, according to a Bureau of Labor Statistics (BLS) report. With many candidates still hesitant to relocate, boomerang hires are even more valuable. Instead of spending resources on national searches, businesses can turn to their past employees to fill positions faster and more efficiently.
A staffing partner can help organizations capitalize on this opportunity by targeting former employees and developing a strategic action plan that attracts and re-engages boomerang talent. Overall, boomerang hiring is a smart and practical strategy for companies looking to save time and money while filling important roles.
Dahl Consulting is uniquely positioned to help employers tap into this resource, ensuring that companies can benefit from workers who already possess the necessary skills, reducing turnover and improving the overall talent pipeline. Ready to see how boomerang hiring can benefit your business? Contact our team to create a tailored plan for bringing back the best talent today.