Goodbye or see you later? Your ex-employer wants you as a reference

Akin to an old flame you still keep in touch with as a friend, more and more organizations are choosing to actively maintain ties with ex-employees. Why? According to a study from the University of British Columbia, this emerging tactic is effectively a win-win for employers and (ex) employees alike.

If the notion of a business jumping through hoops to maintain contact with former workers sounds bizarre to you, that’s because it is – or at least it was. Traditionally, the onus has been on departing employees to maintain good relations with their old companies, not the other way around. Well, times have changed, and the average professional nowadays has never been more likely to accept another job offer. As more and more workers hop from one position to another, businesses of all kinds have begun prioritizing positive “alumni-organization relationships” (AORs).

“Traditionally, AORs were most common in professional service firms. But as it becomes more common for workers to job hop over the course of their career, we are seeing more organizations investing in relationships with alumni,” says UBC Sauder assistant professor Dr. Rebecca Paluch in a university release.

Why employers want you as a professional reference 

The word “alumni” may conjure images of lecture halls and high school halls at first, but the term is increasingly being used by employers to refer to ex-employees. To study this topic, the team at UBC analyzed a wide variety of businesses and organizations, ranging from mega brands like Starbucks to top law firms. In a nutshell, they set out to better understand why exactly so many employers are devoting valuable time and resources toward improving relations with people who don’t even work there anymore. 

This approach led to the conclusion that alumni-organization relationships have become important for countless companies because ex-workers offer a unique mix of first-hand insider knowledge combined with an outside perspective and connections. It’s becoming increasingly common for company alumni to return in a more limited capacity as contractors, while other ex-employees may accept jobs at organizations doing direct business with their former employer. 

Of course, every organization also has a reputation to protect. If a company makes life miserable for its workers on their way out the door, word will no doubt spread quickly about the poor working conditions. Similarly, continuing to support employees after they leave can provide a big brand boost. It’s in employers’ best interest to maintain positive ties with all workers, past and present.

The study details how for certain organizations, AORs actively help generate new business. Many law firms, for example, prioritize AORs because it’s common for junior lawyers to eventually assume general counsel roles in new organizations. If an ex-junior lawyer ever needs to hire outside legal counsel, a strong relationship with a former employer may lead to them hiring that firm. For larger brands like Starbucks, meanwhile, AORs are great for promoting a better brand image in the community. 

“They call all of their stores ‘third communities’ because they want to make people feel welcome and like they’re part of something when they visit the stores,” adds Dr. Paluch, who co-authored the study with Dr. Christopher Zatzick of Simon Fraser University and Dr. Lisa Nishii of Cornell University. “AORs are in line with the overall branding of building community and keeping people connected.”

AORs benefit ex-employees too

On the other hand, embracing and maintaining alumni-organization relationships also offers a number of attractive benefits to alumni long after they’ve departed a company. Examples include newsletters featuring updates about other alumni and the company, career resources, exclusive job boards, training and development opportunities, and access to in-person networking events.

Since AORs are a relatively new phenomenon, Dr. Paluch explains many companies struggle to formulate their own distinct approach to maintaining contact with alumni. There’s hardly a set blueprint to follow. Researchers say that in order to develop successful AORs, companies should consider a two-pronged approach: Cast a wide net by reaching out to many ex-workers via broad communication channels while also more selectively targeting specific alumni more likely to provide further value from outside the organization. 

In many cases, study authors observed the most successful AOR programs featured direct input from ex-employees. “It’s important to make sure the organization is getting alumni feedback so they’re meeting their needs and not just offering things because some other company is doing it,” Dr. Paluch suggests.

The study, published in the scientific journal Academy of Management Review, also notes that  one of the biggest mistakes employers habitually commit is failing to properly support employees as they depart the company, only to swiftly turn around and say they’d like to keep in touch.

“If employees are having terrible exit experiences, then it shouldn’t be surprising if they don’t want to stay in touch after they leave,” Dr. Paluch notes.

In summation, while some may worry that actively supporting employees as they exit may make leaving more attractive, researchers say savvy organizations have already recognized that many workers are going to be leaving either way. They might as well maintain positive ties. There’s no such thing as too many glowing professional references, after all. 

“We’ve been seeing tenure decline over the past few decades, and most employees move on to a new company after four or five years,” Dr. Paluch concludes. “Strategically, organizations might as well consider, ‘If we can’t keep them in the organization, how can we at least keep them connected to the organization?’”