Corporate Alumni Program Survey

Detailed ResultsMay 2014

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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

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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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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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.

Detail Analysis

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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.

8Base: All respondents (N=334)After an employee exits the company, do you have a process for engaging them after they leave?

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 respondentsWhat barriers, if any, do you face? Choose all that apply.

Formal Corporate Alumni Programs are not the rule

10Base: 306 respondentsDoes 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.

Segmented Results

Organizations Responding Affirmatively to Having a Formal Corporate Alumni Program

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Not all former employees are eligible

12Base: 20 respondentsWho 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.

Corporate Alumni Programs deliver ROI

13Base: 14 respondentsHow 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.

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 respondentsIf you currently provide Corporate Alumni services, what is the nature of the offering? Choose all the apply.

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 respondentsHow do you engage alumni in the program? Choose all that apply.

Satisfaction high when evaluating participation rates

16Base: 14 respondentsHow 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.

Outplacement a key tactic in strengthening the employer brand

17Base: 15 respondentsAre 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.

Majority are not “talent exporters”

18Base: 15 respondentsDo 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.

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 respondentsTo what extent does you organization bring retirees back into the workforce?

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

20Base: 10 respondentsWhat key factor most contributes to the success of your Corporate Alumni Program?

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

21Base: 8 respondentsWhat key factor presents the greatest challenge for your Corporate Alumni Program?

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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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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