Thought Leadership

Is it ever a good idea to re-hire an ex-manager? Yes, welcoming back former high-flyers can be a smart move, but only under the right circumstances, says Claudio Fernández-Aráoz, a Senior Adviser at Egon Zehnder International and author of Great People Decisions. As companies recover from the recession and recommence the search for top talent, they will need to adopt a more creative approach to recruiting for key strategic positions.

Former leaders represent a great pool of talent just waiting to be tapped. Why? Unlike other external candidates, ex-top managers possess invaluable knowledge of company culture. But they also offer an outsider’s insights into the changes needed to boost organizational performance and growth. The success of returning executives, however, depends heavily on how effectively a company can reintegrate them.

So what are the keys to successfully bringing back former employees? Firstly, companies need to check their fit. This involves clearly defining the vacant position to establish the challenges and strategic priorities at stake, as well as the managerial competences required.

Firms subsequently need to appraise the former employee through a series of well-structured interviews and reference checks to verify whether s/he satisfies these requirements. The two pitfalls facing hiring managers are assuming too much and investing too much. Both of these traps can be avoided by supporting the integration of returning top performers.

This involves clearly communicating why the ex-manager is being brought back to other company staff members, especially to potential internal candidates for the position. Returning leaders should also be fully informed of the current company situation and given a very clear mission articulated in short and long-term goals.

But companies should not expect returning leaders to work miracles overnight. Senior executives, in particular, will require time and resources to form relationships with recently recruited staff and reactivate existing contact networks. To ensure their maximum effectiveness, returnees’ performance should be monitored on a regular basis (at least quarterly) to assess the level of organizational support received and troubleshoot any problems. A disciplined onboarding process is the key to their future success.

Claudio Fernández-Aráoz is a Senior Adviser at Egon Zehnder International and author of Great People Decisions.

This is a summary of an article entitled, “Should You Rehire Former Employees?” originally posted on Harvard Business Publishing’s website on 7 October 2009. For a complete version of this article please consult http://blogs.harvardbusiness.org/