In April 2014, Lee Hecht Harrison surveyed 334 HR practitioners in North America to better understand and gain insight into: (1) Talent needs of organizations; (2) Best practices in the creation and execution of Corporate Alumni Programs; and (3) What organizations can do to build lifelong relationships with employees.
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Background
In April 2014, Lee Hecht Harrison surveyed
334 HR practitioners in North America to
better understand and gain insight into:
•Talent needs of organizations
•Best practices in the creation and execution
of Corporate Alumni Programs
•What organizations can do to build lifelong
relationships with employees
3. Why Corporate Alumni Programs Matter
Organizations must be intentional about
staying connected to former employees in
order to capitalize on key business
opportunities, including:
•New revenue sources
•Brand ambassadorship
•Rehire or recruiting efforts
•Building goodwill and brand loyalty
•Customer referrals
•Gathering competitive intelligence
•Innovation
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4. What to Do About It
Organizations need to build strong ties with
exiting employees to strengthen their brand,
uncover new business opportunities and
keep their talent pipeline strong.
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5. 5
Executive Summary
• Most organizations (54%) are rarely or never engaging exiting employees after they
leave the company as part of a standard practice.
• Organizations appear to lack commitment or a clear understanding of the benefits as
39% reported alumni programs are not deemed important and a further 48% cite a lack
of financial resources.
• Only 7% organizations offer a formal corporate alumni program designed to foster
engagement after exiting employees leave the company.
• When offering formal Corporate Alumni Programs, retirees are always eligible, while
75% make voluntary separations eligible, and only 40% make involuntary separations
eligible.
• Corporate Alumni programs deliver a return on investment, with the greatest impact on
strengthening the brand and converting former employees into customers.
• Organizations offer a mix of services in their corporate alumni programs. The top three
include websites with information on benefits, email newsletters and referral programs.
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Executive Summary
• In-person events and social media are most used for engaging alumni, demonstrating
the value of connecting with people more authentically, either virtually or live.
• Exiting employees are interested in staying connected with former employers. Fifty
percent of respondents say they are extremely or very satisfied with participation rates in
their corporate alumni programs.
• Organizations are not tapping the talent of retirees to fill talent gaps, with 62% reporting
they bring back retirees on a minimal, case-by-case basis.
• Organizations are not tapping relationships with vendors, suppliers or customers to
“export” talent.
• Most organizations offer outplacement as part of their strategy to strengthen their
employer brand with exiting employees.
8. Most organizations do not engage with past employees
Engaging exiting employees after they leave a company is not a standard business
practice. More than half of all companies surveyed (54% rarely or never engage exiting
employees after they leave. Only 18% always or frequently do so.
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Base: All respondents (N=334)
After an employee exits the company, do you have a process for
engaging them after they leave?
9. Corporate Alumni Programs face many barriers
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Most organizations lack commitment or clear understanding of Corporate Alumni
Programs, with 39% not considering it important, and 48% citing a lack of resources.
Base: 293 respondents
What barriers, if any, do you face? Choose all that apply.
10. Formal Corporate Alumni Programs are not the rule
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Base: 306 respondents
Does your organization have a formal Corporate Alumni Program?
The vast majority of organizations surveyed do not have a formal Corporate Alumni
Program, with just 7% answering affirmatively.
12. Not all former employees are eligible
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Base: 20 respondents
Who is eligible to participate. Choose all that apply.
Retirees are always included in Corporate Alumni Programs, with organizations devoting
significantly less effort and resources to individuals who leave involuntarily.
13. Corporate Alumni Programs deliver ROI
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Base: 14 respondents
How successful is your organization in achieving the key business
objectives of your Corporate Alumni Program?
Sixty-two percent of organizations found Corporate Alumni Programs to be extremely
effective in helping them strengthen their employer brand, and 46% reported they are
extremely effective in creating brand ambassadors.
14. Corporate Alumni programs offer a mix of services
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Organizations are utilizing a mix of services, with a balance of active (referral programs)
and passive (websites) programs.
Base: 15 respondents
If you currently provide Corporate Alumni services, what is the
nature of the offering? Choose all the apply.
15. Majority embrace personal approach to engagement
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The top two methods employed for engaging alumni is in-person events and social media,
demonstrating the perceived value of a more personal approach gained via live and virtual
connections.
Base: 13 respondents
How do you engage alumni in the program? Choose all that apply.
16. Satisfaction high when evaluating participation rates
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Base: 14 respondents
How satisfied are you with participation in your Corporate Alumni
Program?
The vast majority of organizations are satisfied to some degree with the participation in
their Corporate Alumni programs, with only 7% reporting dissatisfaction. Though nearly
half (43%) report less enthusiastic satisfaction.
17. Outplacement a key tactic in strengthening the employer brand
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Base: 15 respondents
Are Career Transition and Outplacement services part of your
program to strengthen your employer brand with exiting employees?
Sixty-seven percent of organizations offer outplacement and career transition services as
part of their strategy to strengthen their employer brand with exiting employees.
18. Majority are not “talent exporters”
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Base: 15 respondents
Do you have a formal process in place to identify job opportunities with vendors, suppliers or customers of
your company for your employees after they leave your organization (i.e., an exporter of Talent)?
Most organizations do not have a formal process in place to identify job opportunities with
vendors, suppliers or customers of their company for exiting employees after they leave
the organization.
19. Retirees not frequently tapped to fill talent gaps
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No organizations reported that retirees are extensively brought back to fill gaps in talent
for knowledge-sharing and consulting assignments. Sixty-two percent bring back retirees
on a minimal, case-by-case basis.
Base: 15 respondents
To what extent does you organization bring retirees back into the
workforce?
20. Key factor that most contributes to the success of your corporate
alumni program
1. Company culture
2. The ability to maintain a vibrant conversation
3. Buy-in/engagement from most senior leaders, including CEO
4. Run by former employees
5. Dedicated internal alumni committee
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Base: 10 respondents
What key factor most contributes to the success of your Corporate
Alumni Program?
21. Key factor presenting the greatest challenge for your corporate
alumni program
1. Failure to promote
2. Keeping accurate contact data
3. Aging demographic
4. Financial resources
5. Engaging participants
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Base: 8 respondents
What key factor presents the greatest challenge for your Corporate
Alumni Program?
22. Recommendations
• Commit to engaging all employees after they leave
to foster vibrant, ongoing conversations and provide
visible support from senior leaders.
• Allow former employees to play an active role.
• Use multiple channels to promote their program,
recognizing that one size does not fit all, and place
greater emphasis on finding ways to connect with
people in more personal, authentic ways.
• Look for opportunities to tap retired employees for
knowledge-sharing and consulting assignments to
fill gaps in talent needs.
• Act as “talent exporters” by connecting exiting
employees with potential job opportunities with
existing vendors, suppliers and customers.
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23. Conclusion
When companies commit to engaging
employees in lasting relationships through
Corporate Alumni Programs, they build a
powerful culture of respect, commitment and
inclusion, while opening up new channels to
increase revenue, recruit new talent and
strengthen their brand.
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