Alumni Management: The Value Of Former Employeesby Community Admin in Corporate Alumni | Last Edited: 24th April 2019
According to consensus, global annual spend on enterprise applications for Human Capital Management is set to experience double-digit % growth to more than $75bn by the end of the decade.
The sector is growing so fast and is so valuable for one critical reason: Nothing matters to a business more than its people. More and more companies are beginning to realize that ‘people’ means not only current employees but also former ones i.e. alumni.
Large-scale global enterprises are beginning to understand that alumni are not ‘deserters’ but a valuable, untapped resource. Hence Alumni Management is rapidly becoming an important source of competitive advantage and differentiation in an age where recruiting top talent is often the number one challenge facing business.
Average staff turnover in business is c.15% although this varies drastically by industry (source: Monster.com). Motives for leaving differ but the majority are good leavers and willing to stay engaged with former employers.
Those good leavers are a key part of the talent pipeline and solutions such as EnterpriseAlumni enable active search and sourcing across an established network of potential candidates for future roles. Re-hires (boomerang employees) and referred talent by those alumni are invaluable.
By encouraging engagement and long term loyalty, individuals are more likely to interact in a supportive way with their former employers – such as providing bespoke expert knowledge or acting as brand ambassadors, customers or suppliers.
The economic rationale to employ SaaS enterprise applications for Alumni Management is strong as payback times can be measured in months not years. Recruitment costs are lower than conventional recruitment approaches due to faster time to fill roles and reduced search costs. The buying power that alumni add to an organization brings real economies of scale that positively impact a P&L. The culture and community of a company are drastically enhanced.
The data is up to date and can be intelligently harvested for uses ranging from sales and CRM to procurement, HR, marketing and evangelism. That’s why HCM is still growing aggressively compared with so many other software sub-sectors.
The $75bn market and double-digit growth say it all: Companies know that they must ‘get their people right’ to prosper. The numbers, in this case, really do say it all.