Ep 6 (The Smart and Savvy Exit) The Big Turnaround - A Way Out Part 2 - Ellen McIlhenny

Ellen McIlhenny - “The Smart and Savvy Exit – The Big Turnaround – A Way Out (Part 2)

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INTRODUCTION
I read an interesting article today in “Small Business Trends” by Gabrielle Pickard-Whitehead about rehiring employees who had left your company.  I’ve been in the business world for more years than I’d like to admit, and I can remember a time when leaving a company for whatever reason was a bridge burned. However, in today’s “new normal” job market where labor is one of the biggest concerns of almost all small business owners, the idea of hiring back a known quantity is not always a bad thing. Many times, when an employee leaves it is because of that part of human nature that makes us think that “the grass is always greener on the other side”. But that might not always be the case. A good former employee may jump at the chance to come back if asked nicely. 

What I thought was interesting about Ms. Pickard-Whitehead’s article is that studies have found that more than 50% of employees who were rehired by their employer were either slightly more or much more satisfied with jobs than they were before. This compared to less than 40% felt about the same about their job after being rehired. Less than 10% said they were less satisfied with their employer after being rehired. In addition, human resources professionals say that they are almost 80% more likely to rehire a former employee than they were just a few years ago.

Obviously the number one reason to rehire a former employee is you know this individual and their work habits. If you like them enough to rehire then there is no reason to believe they will be any different the second time around.

A few other reasons to rehire are:

• They already know the job.
• More than likely their skill set has improved in the time they were gone.
• They show other employees that “the grass may not be greener on the other side”.
• They are less expensive in both training and recruiting. 

With that said there are things you might want to watch out for when rehiring an employee:

• If they left on not so good terms, there may still be some bad feelings that could start coming out as time goes by.
• There will be a question of the seniority of the individual.  Do they start at square one? 
• Will they be stuck in their old ways if changes have been made in policies and procedures since they left? 

​Obviously one thing that will determine how well a rehire will work out is how long have they been gone from the company? The shorter the time frame the more likely a rehire will work out.

We here at IBGR are committed to helping small business owners with questions you may have about running your business. Whether you are just starting or have been around for many years. We are here for you.

IBGR has a lot of exciting things happening during season 6.  Be sure to become a part of our community so you can be a part of it.  Thanks for listening. 
  
 
Show Objectives - The Why
 
Today we will continue our discussion of my book The Big Turnaround: How bad management nearly destroyed an exceptional company. Today we will be talking about “A Way Out (Part 2) – Burgess Industries may be for sale once again.

Then I’ll talk about another main take-away from the book – Instead of Searching for the “Magic Bullet”, look within.
Out “Tuesday Tip” – Cultivate Creativity! 

 Shows 

• Previous: Season 6 Podcast Episodes 12-15 We covered Chapter 6, “Daryl the Disruptor”
• Find My Podcast at https://pod.co/future-financial-confidence-with-ellen-mcilhenny

Next Week: “The SMT….or is it The SLT?”.


Resources:
Written by Ellen McIlhenny 
Owner of CFO Plus Services, a Fractional CFO services firm which also offers Back Office Bookkeeping Services.  Author of the business novel The Big Turnaround; How Bad Management Nearly Destroyed an Exceptional Company. Check it out at https://thebigturnaround.com


You can connect with Ellen on any of her #cfoplusservices platforms or ellen@cfoplusservices.com
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