Academic explains that as more former employees return, HR leaders need clarity, structure and sensitivity to make rehiring work
Boomerang hiring—the practice of rehiring former employees whether they quit or were laid off—is making a notable return in today’s workforce.
Compared to 31 per cent last year, boomerang hires accounted for 35 per cent of new hires as of March 2025, and in the information sector, nearly two-thirds of new hires were returning employees, according to the ADP Research Institute.
Sara Mahabadi, assistant professor of strategy and management at the University of Alberta, says organizations are looking more closely at this expanded pool of talent as the labour market normalizes after a huge global upheaval surrounding the pandemic.
“It now seems like the world situation is going little bit back to normal, at least in North America, and so many organizations are thinking about rehiring or hiring more people for different functions, services,” she explains.
“They're looking into this expanded pool of candidates.”
These workers are becoming a valuable talent pool for employers trying to fill roles amid a tight labour market, ADP notes. And while boomerang hiring surged during the 2020 reopening period, the current uptick is driven by long-term strategic thinking.
Why employers are turning to boomerangs
According to Mahabadi, rehiring former employees can bring significant advantages in the form of saved resources—she points to recent research that shows boomerangs outperform new hires in specific contexts.
The familiarity is not limited to procedures and protocols. It includes internal culture—something new hires may struggle to grasp in the early stages. This period of acclimatization can lead to friction and even job loss, which boomerang hires sidestep.
“Relative to new hires … boomerangs’ familiarity with the organization's social system help them engage better in coordination and overcome some of the internal resistance from current incumbents, or organizational incumbents,” Mahabadi says, explaining that boomerang hiring is especially effective in roles that demand a high degree of internal coordination.
Returning employees can require less time to reintegrate, and can collaborate effectively across departments; “They already know about the social system. They already know about the culture, the routines, the norms, the way people know each other, work with each other. And so they find it easier to reintegrate and start working,” says Mahabadi.
HR must repair psychological contract
Although there are obvious benefits to boomerang hires, Mahabadi cautions HR professionals against treating boomerang rehiring as routine; these employees may arrive with baggage that needs to be addressed—especially if they left due to layoffs.
The first task for HR is assessing how the psychological contract, which was broken by the employer by the termination, will be repaired.
“Try to find ways to communicate the reasons behind the initial violation of that contract, and what happened exactly,” says Mahabadi.
“The number one thing that you want your employees to feel is trust … you violated this once, now you need to repair this, before they re-enter.”
The degree to which this repair occurs can directly affect the success of the rehire, she says: “The better, the more complete and comprehensive the repair is, the readier they are to engage in a new psychological contract with your company.”
Role re-clarification for boomerang hires
HR professionals must be transparent with boomerangs about compensation, reporting structure, and role expectations, Mahabadi stresses – although it may be tempting to rely on old roles and descriptions, organizations and roles evolve, and ignoring that fact can lead to ambiguity and undermine trust.
Being honest about organizational changes is also key to managing expectations, she adds.
“We cannot always guarantee that everything is the same, so things might have changed ... being clear on what has changed, who is still there, who is not there, with whom you will keep working, with whom you need to create new connections and new networks," says Mahabadi.
"Clarity in how much they are being paid, how much new hires are being offered versus these boomerang hires, is really important.”
Consider internal equity when rehiring
One often overlooked challenge in boomerang hiring is how it affects internal equity among employees who stayed with the organization through difficult periods. HR leaders must be cautious when negotiating compensation and titles for returning workers, says Mahabadi, taking into consideration fairness to internal staff who advanced or remained loyal during layoffs or restructuring.
She explains that returning to an organization can be difficult for both the boomerang and the existing team if changes in hierarchy are not clearly communicated.
“It might really be hard for me, if you were my colleague and we were both junior engineers,” Mahabadi says, “it would be hard for me to come back to an organization and see that you are now a senior. I'm still going to be a junior.”
She recommends that HR be transparent about career progression and role expectations when rehiring; rehiring former workers without addressing internal dynamics can result in friction and undermine the reintegration process: “Explaining the situation, bringing clarity as to … what kind of job, what kind of responsibilities? Is there a chance for promotion? If yes, in how many years?”
Employers must ensure boomerang hires fit into the evolved structure without creating perceptions of unfair advantage or unequal treatment, says Mahabadi.
The onboarding process should involve past supervisors and team leads, she adds, to surface any potential challenges that might have remained under the radar; “Go back and look into who that person was working with, who was the direct supervisor or manager … what are the areas that need to be improved?”
