More Than 1 In 10 Laid-Off Employees Were Rehired By Former Employers In 2005
More Than 1 In 10 Laid-Off Employees Were Rehired By Former Employers In 2005
March 15, 2006 at 12:00 AM EST
PHILADELPHIA - March 15, 2006 - A surprising one out of 10 employees who were laid off in a downsizing were later rehired by that same employer in 2005, according a survey by Right Management, the world's largest career transition and organizational consulting firm.
During 2005, 13% of employees who had previously been laid off were rehired by their former employers, according to a survey of more than 14,000 displaced employees from more than 4,900 organizations throughout North America who found new jobs last year with the assistance of Right Management's outplacement consulting services.
"This marks a significant shift in employer attitudes toward rehiring laid-off workers," said Eileen Javers, Global Leader, Center of Excellence Transition for Right Management. "Due to the shortage of talent, especially at the managerial and executive levels, employers are more willing to re-hire displaced employees because of their familiarity with the job and the organization.
"Employers view re-hiring former employees as less risky in terms of making a bad hire. A former employee let go for non-performance reasons is a known quantity who has already proven to be a good cultural fit with the organization."
A Right Management survey conducted in 2005 showed that more than half of employers are hiring back previously laid-off employees.
That survey found that 54% of employers are at least occasionally rehiring former employees who were displaced by earlier downsizings. However, almost as many organizations - 46% - said they rarely hire back former employees. 42% of employers said they only sometimes rehire former employees, only 9% regularly do it, and just 3% often do it, according to the survey.
"The former attitude in corporate America - that once an employer and employee parted paths, their history was concluded forever - is shifting," Javers noted. "The talent shortage is forcing employers to rethink that attitude, and that's benefiting both employers and employees."
The most recent survey also indicated that entrepreneurship still holds appeal for many laid-off workers. 21% of laid-off employees started new businesses after being laid off last year, the same percentage as did so in 2004. This included 11% who started or acquired businesses, and 10% who started or acquired consulting practices, the same figures as in 2004.
About Right Management
Right Management (www.right.com) is a global provider of integrated consulting services that help clients maximize the return on their human capital investment while assisting their employees to achieve their potential. It offers services to corporations of all sizes through a global network of more than 300 service locations and the Internet. The company is a worldwide leader in customized career transition solutions and also offers a wide range of organizational consulting services, including talent management, leadership development and organizational performance services.
In combination, the two lines of business enable Right Management to help businesses manage the entire life cycle of their employees. Right Management is a wholly owned subsidiary of Manpower, Inc. (NYSE: MAN) a world leader in the employment services industry; creating and delivering services that enable its clients to win in the changing world of work.
During 2005, 13% of employees who had previously been laid off were rehired by their former employers, according to a survey of more than 14,000 displaced employees from more than 4,900 organizations throughout North America who found new jobs last year with the assistance of Right Management's outplacement consulting services.
"This marks a significant shift in employer attitudes toward rehiring laid-off workers," said Eileen Javers, Global Leader, Center of Excellence Transition for Right Management. "Due to the shortage of talent, especially at the managerial and executive levels, employers are more willing to re-hire displaced employees because of their familiarity with the job and the organization.
"Employers view re-hiring former employees as less risky in terms of making a bad hire. A former employee let go for non-performance reasons is a known quantity who has already proven to be a good cultural fit with the organization."
A Right Management survey conducted in 2005 showed that more than half of employers are hiring back previously laid-off employees.
That survey found that 54% of employers are at least occasionally rehiring former employees who were displaced by earlier downsizings. However, almost as many organizations - 46% - said they rarely hire back former employees. 42% of employers said they only sometimes rehire former employees, only 9% regularly do it, and just 3% often do it, according to the survey.
"The former attitude in corporate America - that once an employer and employee parted paths, their history was concluded forever - is shifting," Javers noted. "The talent shortage is forcing employers to rethink that attitude, and that's benefiting both employers and employees."
The most recent survey also indicated that entrepreneurship still holds appeal for many laid-off workers. 21% of laid-off employees started new businesses after being laid off last year, the same percentage as did so in 2004. This included 11% who started or acquired businesses, and 10% who started or acquired consulting practices, the same figures as in 2004.
About Right Management
Right Management (www.right.com) is a global provider of integrated consulting services that help clients maximize the return on their human capital investment while assisting their employees to achieve their potential. It offers services to corporations of all sizes through a global network of more than 300 service locations and the Internet. The company is a worldwide leader in customized career transition solutions and also offers a wide range of organizational consulting services, including talent management, leadership development and organizational performance services.
In combination, the two lines of business enable Right Management to help businesses manage the entire life cycle of their employees. Right Management is a wholly owned subsidiary of Manpower, Inc. (NYSE: MAN) a world leader in the employment services industry; creating and delivering services that enable its clients to win in the changing world of work.