How Your Ex-Employees Could MAKE You Millions
In Part I, How Your Ex-Employees Could Save You Millions, we explored how corporate alumni networks save companies bucks in recruiting costs.
What if your former employees could actually MAKE you money? As it turns out, alumni can provide an unbelievable revenue stream for sales in the form of warm leads. Every employee who walks out that door, if handled well and kept engaged throughout the employee offboarding process, is an opportunity for new business. There are no better brand ambassadors than those who know the caliber, culture and scope of your work. The next time their new employer needs a solution that your company provides, who are they going to call? (Hint: It’s not Ghostbusters.)
Let’s look at the potential impact of this opportunity in numbers. Millennial’s will hold 12-14 jobs in their lifetimes. Say you hire 500 new employees per year and 75% of those are millennials. That’s 375 people, multiplied by an average of 13 jobs each after they leave your clutches: 4,875 new employers. Consider each of these new employers as a warm lead: over 10 years, that’s nearly 50,000 leads. Now let’s say your average deal size is $50K, and you close the market average of 4.3% warm opportunities, we’re talking about $10.5 million annually in new business from your alumni network alone.
Still with me? We can’t ignore the cost of NOT maintaining ties with your alumni. Myriad websites like Glassdoor allow employees and former employees to review their employers or ex-employers. These personal references can make or break your ability to attract top talent. People talk (and type), and LinkedIn makes it easy to see who in your network has worked at a company you’re considering. A glowing or scathing review can determine whether your dream candidate accepts or rejects your offer.
Thus, traditional offboarding protocol is changing. The “don’t let the door hit you on the way out” mentality is transitioning towards an ongoing open door policy for high performers. Employee-alumni networks make staying in touch seamless.
With Millennials representing 75% of the global workforce by 2025 and more than 60% of Millennials leaving their company in less than three years, the time to implement an alumni engagement effort is now. You can’t afford not to.