3 ways alumni programs improve organizational productivityDecember 09, 2015
Alumni programs are an effective solution for companies wanting to stay connected with former employees. However, these programs can also serve as a valuable tool for helping organizations improve productivity among their current employees.
Alumni programs can help a company better achieve its goals in three ways: bringing on employees who are a better cultural fit, hiring and recruiting more efficiently, and growing the company's brand and reputation.
Improving cultural fit
Companies that hire employees that fit in to the workplace culture are much more effective at reaching their goals. Forbes reported recently that nearly 9 out of every 10 hiring failures happen because of a poor cultural fit.
Hiring former employees is an excellent way to deal with the cultural fit challenge. Because alumni have already worked at the organization, they are well-acquainted with the culture and how to fit in, making them much more productive than someone who is brand new. Research shows that rehires are 40% more productive during their first three months of work, which directly benefits their employer's bottom line.
Recruiting more efficiently
Recruiting, hiring and training costs are some of the most significant business expenses that any company faces. Forbes says that hiring a new employee can be much more than their salary. For employees with specialized skills, costs are even higher.
Allowing recruiters and hiring managers to hire from a pool of previous employees can drastically reduce this cost. Corporate recruiters do not have to invest as much time and money into traditional methods of hiring employees when they have access to a group of well qualified, experienced candidates in their alumni program. This helps keep hiring costs down and lowers turnover, allowing a company to devote more resources to other areas that will improve productivity.
Increasing brand equity
When an organization creates an effective alumni program that offers value to former employees, it improves the company's brand. An alumni program shows that the organization is invested in the success of their employees even after they leave. This focus on employee development is needed to attract top tier talent in today's workforce.
In an interview at a business leadership summit, McKinsey's Global Director of Alumni Relations Sean Brown said that McKinsey's alumni program adds value for alumni in three ways:
- Access to an alumni network that contains contact information for all 30,000 former McKinsey consultants
- Job opportunities for alumni and access to the alumni pool of talent for previous employees looking to hire someone for their new company
- Global knowledge sessions held twice a month that allow alumni to learn about new research McKinsey is working on
By offering these resources to former employees, McKinsey has improved their brand and increased the likelihood that top talent will come to work for them, making the company more productive and better able to meet its goals.
For more information about how to run a corporate alumni program that helps improve your company's productivity, schedule a customized demo of Insala's alumni software.