Small business

Do companies care about former staff?

September 6, 2010
Former staff

Companies shouldn't always forget about staff the minute they walk out the door. Photo: Louie Douvis

When was the last time you heard from your former employer, or the one before that? Never?

I don’t mean former colleagues emailing you or staying in touch through social networking sites, but the firm itself making an effort to maintain contact. This could include sending an annual update to ex-staff or inviting them to an “alumni” gathering every few years.

What’s your experience? Have your former employers done anything to stay in touch with you? Do you care? Do you resent the fact that after working years for a firm, it could couldn’t care less about you once you leave? Are Australian businesses mostly terrible at building alumni networks?

Of course, some staff can’t stand their former employer and vice versa. There’s no interest from either side to stay in touch. Fair enough. But many more staff leave employers on reasonable terms to seek opportunities elsewhere, or because they are made redundant due to market conditions.

I’ve been thinking a lot about how companies treat former employees. A friend was recently made redundant and asked to leave the firm on day he was sacked. He didn’t see it coming and most likely will never want to hear from the firm again, even though he worked there for many years and I suspect deeply cares about the business and his colleagues.

It’s surprising that so many companies do so little to maintain contact with former staff. Some firms, especially those in professional services, excel at co-ordinating occasional staff alumni events. They know former staff who leave on the right terms are still an asset when working elsewhere.

Past staff can be source of work, an important network for the firm, a possible recruitment source should they decide to return, or a referral source for potential employees.

Most of all, the way companies treat people after they leave sends a big message to those who remain. Staying on good terms with former staff is good for culture. It’s also good for the company’s brand when ex-staff have only positive things to say.

Yes, it is not always possible. Some staff leave to work for rivals. Others leave on bad terms and need plenty of time away from the firm before contact is made with them. Others are poisonous and best kept away from the firm once they leave. Others treat their employer poorly, so it’s understandable the company wants nothing to do with them.

But I can’t help think too many firms make almost no effort to maintain contact with former employees will still care about the place and would like to stay in touch, if only asked. Their alumni networks are non-existent or given little attention.

This approach makes no sense in an economy that could again face critical skills shortages in the next few years. Smart small enterprises should ensure they keep some contact with those who leave on good terms.

This could be as simple as a sending former staff an annual update on how the firm is travelling or inviting them to an alumni cocktail party every two or three years. Maybe even a phone call from their old boss to check how they are getting on six months after they leave?

I remember being asked to resign from my first job at a global consulting firm. The job was an awful fit, but being sacked when I was 21 years old was still a blow. The consulting firm set me up with an outplacement agency (which got me my first job in journalism), kept in contact and invited me to alumni events. I even received a 20-year anniversary book on the firm a few years ago.

I still think fondly of that firm and speak well about it. Compare that to an investment bank that asked me to leave on the spot when I resigned to work for a non-rival.

Leaving on the day you resign is not unusual in the financial services industry, and, frankly, getting a month’s “gardening leave” without having to come to work felt great at the time. But looking back, it soured my experience at a firm I put my heart and soul into for five years.

So many firms underestimate the goodwill former employees have towards them. It doesn’t take much to maintain some simple contact every year or two. Former employees always have a choice: nobody is forcing them to stay in touch if they hate the place and want to be left alone.

Personally, I find it disturbing - but not surprising - that so many firms couldn’t care less about staff once they leave. It’s a short-sighted, dumb approach from dumb companies.

Having a network of former staff who still care about the place, its people and brand is a huge potential asset. Don’t let it go to waste.

13 comments so far

  • It is one of the greatest article I ever read. It's quite a short-sighted, dumb approach from dumb companies.

    Commenter
    Khoa Vu
    Location
    Sydney CBD
    Date and time
    September 06, 2010, 12:17PM
  • Great article. I left one of Australia's 'top ten' employers last year after 15 years service and have not heard 'boo' from them since.

    So many companies are desperately vying for mindshare via 'social networking' media without even realising the potential value they are sitting on through untapped alumni networks.

    Commenter
    Asset Manager
    Location
    Sydney
    Date and time
    September 06, 2010, 1:15PM
  • I've always left each employer under positive conditions and I've remained friends with a lot of former colleagues. But I have never been contacted by any former employer for anything. I didn't even know companies did that kind of thing. I've never been a high flyer career wise so I guess that's not surprising. It's a smart idea though, more companies should be doing it.

    Commenter
    Spanish Girls
    Location
    Brisbane
    Date and time
    September 06, 2010, 2:17PM
  • An ex-employer (ASX 50 medical device manufacturer) of mine has a very large and vibrant alumni group. It meets regularly and its members have many fond memories of their former workplace. Of course, the interesting question is: why is it such a large group?

    Commenter
    christophergsm
    Location
    Sydney
    Date and time
    September 06, 2010, 1:47PM
  • Great article. Just something to ponder. In 2 recent cases my employer was taken over by another; hence my departure. So while I kept contact with colleagues personally, the companies changed their spots and probably were glad to see me go. So the circumstances of departure is a factor; like it or not. So my former employers now are a shadow of their former selves; so any approach from the hr depts would be cynically received by me now.

    Commenter
    Dave
    Location
    Sydney
    Date and time
    September 06, 2010, 1:37PM
  • Great artical and so true. I worked at major property company for 7 years and put in a load of effort. Like many former employees lost our jobs through not fault of our own.
    The corporate world stinks and it is wonder any of the large corporations have any loyalty.

    Commenter
    Malcolm
    Location
    Berwick
    Date and time
    September 06, 2010, 3:44PM
  • Most large companies don't give a damn about existing employees, let alone ex-employees. Until recently I worked as a designer for a large automotive firm in Australia (let's call it "Brand F"), and their motto used to be "Our people are our greatest resource". This to me said a lot about how they viewed their people - as a resource, that could be used up, changed or discarded when it suited them. After I accepted a "voluntary" redundancy package, the umbilical cord was well and truly cut, and I was left in free-fall. 17 months on, and I tried to get a job at the same Brand F company, only to find out that the manager (who was involved in shedding staff previously) of that particular department considered ex-employees who had taken packages "not the kind of people we should be hiring". Obviously, his opinion has been passed on to employees under him, as I have not heard a peep from ex-colleagues still working there either. Thoughts of going back for a visit with an automatic weapon briefly crossed my mind! From talking to others in the same situation, this attitude to ex-employees seems common is that company, and I think in industry in general.

    Commenter
    Mark
    Location
    Melbourne
    Date and time
    September 06, 2010, 6:49PM
  • It is a great idea for a firm to maintain some contact with previous employees- after all those who have left do represent a considerable cache of intellectual/ organisational wealth. In practice, I think it possible that those in charge of implementing the contact may feel threatened by those who have gone before them- particularly if still spoken of in warm terms by the former employer. Thus the idea may never truly succeed, as it can be sabotaged by the human frailties (jealousy and insecurity) of those tasked with keeping in touch. Perhaps if top management took time to implement, and see that it truly is systematically implemented, then benefit can be obtained. Everybody appreciates being appreciated- especially former employees and colleagues.

    Commenter
    dee
    Date and time
    September 06, 2010, 11:31PM
  • Can I take out a SURVEY here to see how underhanded Australian corporate world is?

    How many people's company now have employees who leave (regardless of circumstances) "suddenly"? What I mean is they are told not to tell anyone until the last day. There was no proper farewell and I'm not sure why. Did they do that to save money (farewell lunches) or the morale of existing employees? Wouldn't existing employees' morale take a dive when their co-worker suddenly leaves the company and if they're lucky enough they might get a farewell email broadcasted on the last day. Those who are so lucky normally had served the company for over 5 years. But still, the idea of keeping it a secret (even for employees who had served the company longer than 5 years) really disgusts me.

    What is it with all these Baby Boomer and Gen-X employers? Do you have something to hide? Why not do things the right way and let employees leave with dignity? Most of you disgusts me just sitting there shuffling papers.

    Commenter
    CharismaMan
    Location
    Sydney
    Date and time
    September 07, 2010, 12:13AM
  • In their haste to sever all links with former employees, organisations forget some disgruntled employees may do serious damage with their knowledge of where environmental and OH&S bodies are buried. Every organisation has these skeletons in the closet.

    Commenter
    bazza4.0
    Date and time
    September 06, 2010, 9:03PM

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