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Former employees are being rehired at scale, with so-called 'boomerang' employees now representing a significant share of recruitment activity across the labor market.
Although the returning staff members make up only 2% of the overall workforce, they accounted for more than one-third of all new hires in March, according to ADP payroll data.
Nela Richardson, ADP’s chief economist, said rehiring known employees offers clear advantages for organizations looking to manage recruitment costs and reduce risk. “We’re seeing that for workers, the grass may not always be greener someplace else,” she explained. “So, they’re looking to return to former employers.”
Companies cut onboarding costs with 'boomerang' workers
For employers facing financial scrutiny and operational pressures, returning talent is seen as a practical solution. “They wanna get the most efficient hire possible,” Richardson said. “And often that means onboarding someone who’s familiar with the turf, who’s familiar with the company, and who can hit the ground running.”
Hiring has become more selective following a significant shift in labor dynamics. While the labor market remains resilient, the pace of voluntary departures has slowed by more than 25% compared to three years ago. During the pandemic period often referred to as the “Great Resignation,” mass quitting reached record levels. That trend has now reversed, leaving employers with a more cautious approach to expansion.
Richardson added, “Hiring is more cautious. And when hiring is cautious, it slows down, but there’s also a tendency to go with what you know. And that could be a boomerang hire.”
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Exits shape future rehire potential
As employers increasingly revisit previous talent pools, the way workers leave their roles is coming under greater scrutiny. Career experts say the departure process is now just as strategic as the job search itself.
“Leave graciously. Your exit is your brand,” said career coach Erin Kennedy. “How you leave kind of shapes whether or not you’ll be welcomed back.”
The growth in boomerang hiring signals a shift in both retention and re-engagement strategy. With onboarding costs under pressure and organizational knowledge more valuable than ever, maintaining alumni networks and tracking former high performers has become an even more essential to future workforce planning.
