The Rise Of Corporate Alumni Networks

Shaping the future of talent acquisition

In an age of low unemployment rate and a raging war for talent, companies either in growth mode or simply looking to replace leavers, need to deploy new strategies to attract top talent.

One emerging trend has gained substantial traction over the last decade: the rise of corporate alumni networks. These networks, once mainly associated with higher-ed institutions, are now being adopted by companies as a strategic tool to build employer branding, develop business and source talents.

This phenomenon has crossed the orbit with other changes in the job market, fueled also by the Covid-19 pandemic: a recent study by Career Builder revealed a startling commitment gap between working generations. The average length of stay in a job before moving on varies significantly according to age. Baby Boomers last 8 years and 3 months, Gen X for 5 years and 2 months, Millennials for 2 years and 9 months, and Gen Zers just 2 years and 3 months.

Another change concerns the trajectory of career paths. A few years ago, these followed a solid linear growing curve where, in time, employees gained experience and status until the moment they left. At that point, it felt like that path ran into a black hole and every relationship the company had with the employee instantly vanished. Nobody would have thought of going back to work for the same employer, nor would the employer have thought of hiring back the same employee! 

And there was a stark contrast between what the companies did and what they kept telling their employees: “Come with us and you’ll join the Family”! Fine, but then, when you leave your family, you don’t stop being a part of it! You call back, you stay in touch, you exchange postcards, and you often visit during holidays. Only a dysfunctional family would cut ties with their offsprings!

Today’s career paths look more like spirals where the line is sometimes solid (in times of effective employment) and some other times dotted (not employed by the company but still in touch through the alumni network). And that dotted line sometimes becomes solid again as they return to work for the same employer. I’m talking about the “Boomerang Employees” trend which is growing stronger every year.

Many large financial institutions claim that around 10% of their employees are boomerangs. Boomerangs offer companies both soft and hard benefits: on one side when employees return – on average – are happier, perform better, and stay longer; on the other side, there is a substantial financial hard benefit. Some companies claim savings of USD 50/75K for EACH boomerang they rehire. 

About half of it is pure headhunting saving (there is no need to pay a headhunter fee to select and hire a candidate – as recruiting professionals know well, fees range from 15 to 40% of the annual salary) and the rest is productivity saves: returning employees become effective on day one rather than needing induction programs, training, understanding internal systems, or understanding their job requirements. On top of this, they bring back skill sets that they acquired from somewhere else at someone else’s expense. A real win-win!

That’s why I believe corporate alumni networks have the power to shape the future of talent acquisition. By maintaining connections with former employees, companies can foster a sense of community and leverage the collective knowledge and experience of the alumni. These talented individuals represent a pool of qualified candidates, who are already familiar with the organization's culture, values, and operations. It not only streamlines the recruitment process but also enhances the likelihood of finding candidates who are a good fit for the company.

On top of this, corporate alumni networks have a huge impact on the business. These networks facilitate knowledge sharing and collaboration beyond the borders of an organization and boomerang employees bring fresh perspectives, industry insights, and innovative ideas back to the company, contributing to its growth and competitiveness.

And let’s not forget the boost to employer branding and employee engagement! When companies demonstrate a genuine commitment to maintaining relationships with former employees, they signal to current and prospective employees that they prioritize talent development and long-term relationships over the transactional contract employer/employee. This can improve employee morale, loyalty and retention, as current employees perceive that their contributions are valued even after leaving the organization.

Corporate alumni networks offer numerous benefits to alumni themselves, who can leverage these connections for career advancement opportunities, professional development, and mentorship. Furthermore, staying connected with former colleagues and the company provides a sense of belonging and nostalgia, reinforcing positive feelings toward the organization. Alumni can also enjoy other benefits, such as access to discounted company products and services.

Whether launching an alumni network from scratch or revamping an existing one, to be successful in this new paradigm, companies need two distinct but complementary things: a sound strategy and the right tools. The first step should involve asking (and finding the answers to…) a few questions: What is the company looking to achieve? Which internal/external stakeholders to include? What benefit will the company be offering its alumni and what is the company expecting from them? How much is the budget? For how long? What kind of resources does the company need to deploy? How many people? The team’s structure? Reporting?

With all the above answers, companies then need to adopt the right tool: a dedicated alumni platform that enables seamless communication with the corporate community and encourage collaboration among alumni dispersed across geographies. These digital tools not only facilitate networking but also provide valuable data insights that companies can leverage to track engagement and plan for the future but also, through the connection with other internal HR systems, bolster talent acquisition and improve workforce planning.

As someone who had predicted the boomerang employees trend way before rehiring former employees was even a thing, I envision a near future where extreme job flexibility becomes ingrained in both employees’ and employers’ DNA. With new generations spending an average of 2.5 years on their job, in 10 years there will be three to four players that, through their alumni networks, will be competing for the same talent. Being able to remain connected with top talents, both when the connecting line is solid and when it’s dotted, and doing it more effectively than others, will be paramount for the future competitive edge of the company.

Andrea Legnani is President, Enterprises, at Aluminati.