Don’t Hire Boomerangs, Avoid Losing Talent in the First Place

Even as we see potential signs of a slowdown in the construction industry, or at least in select markets and geographies, there remains a strong demand for talent. Total U.S. engineering and construction spending is forecast to increase by just 1% in 2025, a notable slowdown from the 7% growth recorded in 2024, according to FMI’s third quarter North American Engineering and Construction Outlook. Notably, there is increasing growth in key industries, such as data centers (part of the office sector), water supply, and sewage and waste disposal.

Interestingly, what looks like a reversal to the post-pandemic “Great Resignation,” recent employment data shows that there's been a significant increase in the number of boomerangs in recent months according to a new ADP report. Boomerangs – or workers who return to a previous employer – represent more than 35% of workers hired in the U.S. in the last year.

It is reasonable to make the general assumption that most boomerangs represent “regrettable turnover,” in that they were well-performing employees who chose to leave and have since found that the grass isn’t greener in their new environments. This raises the question: “How can employers avoid boomerangs in the first place?”

In other words, how can companies bolster the ability to retain employees so they are less inclined to pursue opportunities elsewhere? The benefits of improving retention tend to be obvious:

• Reduce tangible costs of turnover (e.g., lost productivity, recruiting costs, etc.).
• Avoid declining workplace morale when colleagues depart.
• Minimize the need for continuous onboarding and training.

To better ensure that good employees stay consider the following recommendations:

• Implement compensation that is competitive and fair.
  
  Compensation is routinely cited in exit interviews as a top reason for voluntary termination, even if it is rarely the only reason. The visibility of compensation – in contrast to other factors like intracompany relationships and culture – means that it is often the first or the final factor in an individual’s decision to leave a company. With that in mind, it is critical to ensure that compensation paid to employees, particularly those performing at high levels, is in line with competitive rates. This includes making sure that offerings, like incentive opportunities and benefits eligibility, are also consistent with other companies, especially the ones that might be most inclined to poach employees.
  
  Just as important as alignment with the competitive labor market is the need to align pay within the company. Over the last year, we have seen heightened interest in confirming pay equity among contractors. This trend appears to not be the result of new government requirements, but rather a company-directed interest in fair treatment of employees across all levels and functions of the business. There is more transparency regarding pay than there has been in years past, and employees are increasingly knowledgeable about coworkers’ and external peers’ compensation. If there is not an ongoing effort by a company to verify that employees’ pay is commensurate with objective criteria (e.g., experience, performance, etc.), and if this is not appropriately communicated to employees, they may be more likely to seek validation independently, resulting in turnover if their qualities are valued more elsewhere.
   
• Develop or refine, and communicate career paths.
  
  According to employment trends surveys, one of the top reasons for employee departures has consistently been the lack of belief that there are advancement opportunities available. As a result, an employers’ ability to communicate growth paths and to describe the expectations to move up is key; high potential employees generally desire to know what they can do to best prepare themselves for advancement.
  
  Creating career paths within smaller companies and those with relatively flat organizational structures can be difficult because there is less opportunity for upward mobility. For these companies, it’s critically important to communicate the value of cross-functional skill development and enrichment through lateral moves as well as to encourage employees to think creatively about how to expand their competencies and responsibilities. Recognition for employee growth may take the form of raises, greater autonomy, additional time off, eligibility for new perks or other benefits.
  
  The need to undertake effective workforce planning is also essential to providing employees with glimpses of the company’s future and how they fit. Look at what functions and skills are needed to support long-term business initiatives and begin preparing current employees for new or evolved roles now. Succession planning is a natural dovetail to workforce planning and can have a tremendous impact on successful business continuity. According to the latest FMI and CFMA Ownership Transfer & Management Succession Survey, fewer than one-third of companies have formal leadership succession planning activities; this means nearly 70% are in precarious positions as time goes on because (1) they will not have next generation leaders when they’re needed and (2) unstated successors to executive positions may choose to leave because they were not clearly aware of the upcoming opportunity.
   
• Convey a general sense of employee value and encourage positive internal relationships.
  
  Another top reason employees leave is because of unsatisfying (or worse, toxic) working relationships with managers and other coworkers. Interestingly, if not necessarily surprising, relationships are also one of the top reasons employees stay or boomerang.

Workers are far more likely to consider and request to return to a former employer if their perception of former coworkers and the culture is positive. Companies can even offset other qualities, such as less than best-in-class compensation, in the eyes of workers when leaders are effective and employee engagement and morale are high. If an employee is leaving on good terms, it may be worthwhile to discuss the possibility of a return in the future and encourage the employee to maintain relationships with soon-to-be former colleagues.

Hiring boomerangs can be highly advantageous and mutually beneficial but is not without risks. Returning employees may have a nostalgic view of the way things were, the company’s operations may have evolved so that an employee’s skillset is less attractive and an employee who left for higher compensation is likely to have high expectations for a rehire package. Therefore, ensuring individuals feel fairly valued throughout their employment, have strong positive intracompany relationships and believe they are a part of the company’s future can eliminate the need to hire boomerangs by reducing employee interest in leaving.