INTRODUCTION

It used to be that when you walked out the door that was it. The working relationship was over
once you turned in your ID badge and collected your last paycheck. But many companies are
reconsidering that strategy. After all, skilled employees aren't that easy to find, especially ones
who know the corporate culture. So companies have taken a page from social sites and launched
their own alumni networks. The online sites, which typically are controlled by individual
companies like Deloitte, are a way for ex-employees to connect with their former bosses and
former co-workers — and maybe boomerang back, often with newly acquired skills.

The marketplace is a noisy place these days, making the competition for business, great
employees, and positive name recognition more intense than ever. Organizations that maximize
all their resources and take a team approach to overcoming business challenges are the ones that
will stand above the rest and be noticed.

Easy to say, but how exactly do you get noticed? Spend $2 million for a 30-second ad during the
Superbowl? Sponsor a championship golf tournament? Distribute lots and lots of personalized
pens and coffee cups? Or, turn to people that already know and respect your company – former
employees?

Law firms, consulting companies and other professional services were among the first to
recognize the value that their alumni provide. Former colleagues and supervisors stay in touch
with alumni, if not on a formal basis, then with an occasional email, round of golf, or cocktail.
They know that the relationship can lead to a new sale, partnership, investor, or employee.

“The potential for gaining new opportunities is tremendous,” says Ed Tarlow, President of the
Boston-based law firm, Tarlow, Breed, Hart, Murphy and Rodgers.

Other types of businesses are also discovering the value associated with maintaining contact with
former employees. Frequently, these organizations have a continuing struggle with high turnover
or have an insufficient pool of qualified candidates from which to choose.

A company alumni network is made to remain in contact and maintain relationships with former
employees. This offers organizations a new resource for enhancing organizational capabilities.
Though making formal corporate alumni networks has recently become very important, they
have been loosely formed and utilized since as long as there have been companies and
employees who leave them – by letter mailings, volunteer groups, gatherings etc. The advent of
social media has made this even easier now. Today’s alumni networks utilize Email lists, blogs,
Yahoo, Google, and Facebook groups.
These Alumni networks not only benefit the companies but also the alumni concerned.

Through these networks the companies get their recruiting network i.e. the company may in
future re-recruit these alumni. These rehired alums are valuable new employees as they are easily
integrated back into the organization and bring with them knowledge, skills, and abilities already
tailored to the organization’s workplace, since they have worked there earlier. Hence, it would
reduce recruitment costs by “leveraging dormant assets” while also cultivating professional
resources by fostering diversity.

Also maintaining relationships are necessary as companies think of alumni as potential partners
in collaboration on projects or as sources of innovative ideas, and as subjects for market
research. Alumni are also valued as potential long-term investors in the firm.

Development of an alumni network would give a company an opportunity to become an industry

pioneer, establish thought leadership, and enhance its reputation as an “employer of choice.”

At the same time, the alumni by being in this network get a lot of opportunities – not only a job
opportunity to work again as a part of the organization but also opportunities for new business
ventures.

This network also allows the alumni to keep in touch with their former colleagues and widen
their social networks.

For many years, recognition of the advantages of alumni networks has been restricted to
educational institutions and professional services firms. Recently, however, several large-scale
trends – increasing globalization, the “war for talent”, changing approaches to work and
employment relationships and the ubiquitous adoption of enabling technologies – have
encouraged many companies across all sectors to proceed with major initiatives to harvest their
intangible assets.
 WHY NOW? TRENDS AND DRIVERS
Corporate alumni networks are now well-positioned to develop and diversify beyond the
University models by creating innovative “virtuous circles” of mutual benefit for the company
and its employees. The possibilities have been explored by a relatively small number of
pioneering companies, primarily in the professional services sectors. In recent years a significant
and growing number of corporations have launched concerted efforts to cultivate their alumni
relationships in purposively managed organizations. In answer to the question “Why Now?” it is
necessary to explore the trends and drivers behind this sea change in corporate culture, which
may be reaching a tipping point. The key factors can be grouped under five subject areas:
information technology, the business environment, the work environment, competitive
advantage, and the culture of trust.

1. Information Technology.

The basic underlying or enabling factor in the rise of interest in alumni networks has been the
revolution in IT, most importantly the ubiquitous penetration of low-cost and increasingly robust
communications networks, what has been described as “the death of distance.” Alumni, almost
by definition, constitute a widely dispersed population who no longer come to the office, attend
meetings, and work on common projects. It has always been possible to reach out to alumni, but
the degree of difficulty has been lowered by orders of magnitude. Networks are the norm and
have created an increasingly small world that becomes denser and denser as the webs connecting
its locations proliferate. They have also led to new forms of social behaviour. The explosion of
social networking on the Internet (MySpace, Bebo, Facebook, etribes) has captured headlines
and attracted billions of dollars from media companies, and is now moving into a phase of
intense competitive segmentation. These “communities” are relatively open and unstructured
free-for-alls. But they represent a major trend that has important implications for traditional
business corporations. A number of web service providers now provide more structured
communities either for mature professionals as individuals, or as third-party platforms
customized for the programs of specific corporations.

2. Business Environment.

Globalization has been as pervasive as communications technology, for the two go hand-in-hand,
and has lowered barriers of all kinds – regulatory, economic, national, and even corporate. More
open markets for products and services have brought with them more open markets for labour
and talent: outsourcing is just one example. Intense competition for human resources has caused
leading companies to reconsider how they manage their workforce and the shifting pool of talent
available to them.
In the past, fearing the loss of valued resources, many companies have adopted defensive
“fortress” strategies that discouraged communications with alumni, but in a war for talent amid
scarcity, these policies can be self-defeating. Attitudes are changing, and more companies realize
that using networks to extend market reach can bring access to a larger talent pool.

3. Work Environment.

The traditional workplace, too, is being transformed by both the disruptive and creative effects of
globalization, IT, and the competition for talent. From an employee perspective, job security is
more vulnerable to restructuring, downsizing, and outsourcing. From a company perspective,
employees are more mobile and more transient, leading to higher turnover rates, which increase
the costs of recruitment. At the same time, more dynamic job markets are creating opportunities
for innovation on both sides of the equation. The traditional paradigm of “employment for life”
is no longer the norm; in its place we find greater emphasis on the idea of the “lifecycle of
employment.” Under the impact of changing lifestyles, many employees are developing
alternative models for managing their careers, balancing their terms of engagement with personal
commitments at different stages. Increasingly, the “best and brightest” view their professional
experience as a portfolio of relationships that can be renewed as opportunities emerge. Faced
with changing demographics, such as the aging of the workforce, and the need for diversity,
employers are adopting flexible approaches to managing the flow of talent through their
organizations. From both perspectives, corporate alumni networks are a compelling means of
negotiating the new dynamics of job markets.

4. Competitive Advantage.

In many respects, the trends we have looked at have levelled the playing field for all players in
any given market. With ready access to many of the resources that previously were difficult to
tap, small and virtual companies can compete with the large and established companies. Equal
access to resources, however, has placed a higher premium on what one can actually do with
them. As a consequence, many authorities argue that in the future the essential sources of
competitive advantage will be knowledge and innovation. Here, too, networks will play a crucial
role by crossing internal and external barriers to the flow of ideas, competencies, and intelligence
(in the sense of “news about the latest developments”). Alumni networks, for example, can help
address the problems of “brain-drain” and the loss of institutional knowledge by opening
channels of communication between former and current employees. By the same token, they can
open windows on innovations outside the company's usual focus, creating opportunities for
cross-pollination.

5. The Culture of Trust.

One of a corporation's most important sources of value is that intangible quality called “culture,”
which can also be an agent acting both for and against change. A company's culture is often seen
as a function of its organization, but recent research shows that it is also importantly influenced
by internal “social” networks that cross organization boundaries. An emerging management
challenge is to understand how these networks work in order to leverage their positive effects.
Like markets, networks work based on an exchange of value. But without contracts or explicit
organizational structures to govern the exchanges, they also depend to a greater degree on the
element of trust that provides a foundation for collaboration. And trust is notoriously vulnerable
to bad faith. Managements that want to drive value through cultural change need to understand
how to cultivate trust throughout their networks. This is another reason why corporate alumni
networks are so interesting: because membership in them is entirely voluntary, they rely on and
cultivate loyalty and a perception of common bonds, which in turn provide a foundation for trust.
Loyalty too, of course, must be earned through an exchange of value, and the value proposition
of corporate alumni networks will depend on balancing the practical and tangible benefits for
both alumni and the company. Those tangible benefits will then strengthen the intangible
relations built on loyalty and trust.
 WHAT EXACTLY ARE CORPORATE ALUMNI
NETWORKS?
Corporate alumni networks are organizations whose members are the former employees of a
particular company. Beyond this basic characteristic, they vary widely in terms of size,
longevity, origins, purpose, governance, authority, structure, activities, and even membership
criteria. Chris Gopsill, Executive Producer at First Tuesday Zurich, began his presentation of
research findings on the current state of these organizations by describing three basic types:

First Tuesday's benchmarking survey of 15 of the most prominent large corporations with alumni
programs, provides an important background on the status of these networks: some of them long-
standing, some in development, some of the hybrid kind and under evaluation. All of the
companies are multinationals, and the respondents were based in either the United States (30%)
or Europe (70%), including the UK, Germany, and Switzerland. They covered several industry
sectors, including professional services and management consultancy, information technology
(IT), manufacturing, travel and pharmaceuticals. Due to the differences in type and status, the
survey could not lead to a systematic analysis, but did produce many valuable highlights
regarding basic operations, membership, benefits for the alumni and the company, and critical
success factors.

1. Independent “grassroots” associations are those founded solely on the initiative of former
employees, without company support or approval (or disapproval). They are informal groups
that provide directories of members, organize occasional events and reunions, and may
coordinate other projects. It is hard to estimate their number (there is no association of
associations), but it runs into the thousands. Their success is often temporary or hard to
sustain.

2. Company-supported grassroots associations were also founded independently but have

grown sufficiently in size and stature to win recognition from the company, which may also
provide financial and other means of support. These hybrids vary widely and are much fewer
in number, probably because only a few large corporations have alumni populations large
enough to reach “critical mass.” Their activities are similar to those of the independent
groups, sometimes facilitated by web-based platforms. The most notable example in this
category is the association started by alumni of the U.S.-based consumer marketing giant,
Procter & Gamble.

3. Company-managed associations are those founded and chartered by the company with
board-level approval, have explicit objectives and policies, and are managed by full-time
staff, with executive oversight. This type has existed in the professional services sector for
 years, in a few cases for decades; but in recent years they have penetrated several industries,
particularly among large multinationals.

Considering company-initiated alumni networks, the commonly mentioned elements involved in

realizing the network’s purpose include (1) securing executive support, (2) defining network
participants, (3) determining content and information to be shared, and (4) creating the
channel(s) by which connection with alums will be maintained (Canabou, 2002; Kirsner, 2002;
Stewart, 2003).

First, gaining buy-in from company executives is vital to ensure the network initiative is
supported with adequate resources and taken seriously by those both inside and outside of the
organization. Such executive support will encourage meaningful participation by those involved
in the network through exhibiting company values towards its human resources.

Second, establishing who is to participate in the alumni network involves two different issues:
(1) deciding on network management being performed in-house or contracted out, and (2)
defining which ex-employees are eligible to participate. Available company resources along with
the anticipated size of the alumni network are defining variables as to how the network will be
managed (i.e.: in-house or outsourced). Regardless, appointment of internal persons to be
responsible for the design and delivery of the network or oversight of outsourced partners is
necessary (Stewart, 2003). Outsourcing through the use of a specialized network services firm,
such as Bernard C. Harris Publishing, Corporate Alumni, and SelectMinds, is one efficient
method to manage one’s network via a web-based platform (Kirsner, 2002).

To determine which ex-employees to invite to participate in the alumni network several criteria
are commonly used. The employee’s tenure at the company and reason(s) for departure play a
significant role in determining if an invitation to the corporate alumni network should be offered
(Stewart, 2003). As employees vary in terms of their knowledge, skills, and abilities, they too
vary regarding their strategic importance to the firm (Lepak & Snell, 1999). Inviting only
departing employees considered to be part of an organization’s core workforce, workers directly
contributing to the competitive advantage of the organization (Delery & Shaw, 2001), would
result in higher potential alumni contributions to the firm. In addition, the nature of the alumni
base, whether it is companywide or division-specific, often acts as a selection criterion for
network participation (Stewart).

Third, to encourage participation in the network and foster symmetric ties, Canabou (2002) states
there must be valuable information and activities offered in order for ex-employees to remain
engaged. Access to an up-to-date alumni directory, for the purpose of tapping new job
opportunities, is noted as “the number one benefit” of alumni networks (Canabou). In addition,
other meaningful resources to make available include job boards, training classes, job referrals,
management resources, discussion boards, alumni and company news, along with cocktail parties
to facilitate further networking (Canabou, 2002; Kirsner, 2002; Stewart, 2003). Gaining input
from the alumni base is also important to ensure their interests are being met and to in turn foster
continued engagement and connectedness to the organization (Canabou, 2002).

Fourth, the decision as to how the organization will remain connected to its former employees is
an important one. The use of a web-based system allows for easy and efficient management of
alumni contact information and general data. Alumni access through a web home page also
offers practical sense in addition to contact via email, e-newsletters, and mail. Events also
represent a valuable means for maintaining connections to alumni such as alumni networking
parties or corporate charity initiatives. Considering the nature of the alumni base and their
comfort level with technology, older ex-employees may be less likely to engage on-line and may
require more customized delivery, such as mailings, of alumni communications.

With the ultimate goal of establishing an alumni network to help improve the company’s
business (Stewart, 2003), there are benefits to be accrued to both the participating alumni and the
host organization. For ex-employees, maintaining good-standing with former employers makes
good sense. Alumni network participation provides access to information sources that may prove
to be rich sources for employment and/or business opportunities. For the sponsoring
organization, an alumni network can serve as a vital connection to tacit knowledge held in the
minds of former employees, provide access to a talent pool for rehire or contract work, and serve
as a source of referrals and new business partners (Canabou, 2002; DeLong, 2004; Kirsner,
2002; Stewart, 2003). Further consideration of the potential gains that may be acquired by an
organization via their alumni network such as employee recruitment, workforce flexibility,
knowledge retention, and organizational culture are explored next. In light of the dynamic and
challenging environment facing organizations today, examination of new avenues to leverage
organizational resources is vital to remaining a viable competitor with above average profits.
 ALUMNI NETWORKS AND EMPLOYEE
RECRUITMENT
Building and maintaining a strong human resource capability within an organization starts with
the attraction of high quality, good fit potential employees. Recruitment serves as a primary
means of attracting future employees, along with targeting specific applicant pools and offering
signing incentives (Rynes & Barber, 1990). Key to a successful recruitment strategy are the
sources used by organizations to recruit potential employees (Noe et al., 2006). The use of
internal sources, defined as filling vacancies with current employees, offers several advantages
including (1) the firm’s familiarity with internal candidates, (2) the applicant’s knowledge of the
firm, and (3) the lower recruiting costs (Noe et al., 2006). Recruiting from an alumni pool would
be expected to generate the same advantages as promoting from within. Yet additional benefits
may also be accrued. As former employees have gone on to gain additional knowledge, skills,
abilities, and insights by way of other experiences, these potential rehires represent potentially
higher octane employees able to generate performance results better and faster than a new hire
without previous experience with the firm. Organizational alums may also serve as valuable
referral sources given their knowledge of “good fit” with the former employer and their interest
in maintaining connections to those within that organization.

In light of an organization’s specific labor needs and anticipated tight labor markets,
organizations can benefit from maintaining a bond with former employees. Stewart (2003)
suggests employers could be faced with an estimated 25% annual turnover of employees as labor
trends indicate workers are likely to change jobs up to eight times in their working careers,
according to the U.S. Bureau of Labor Statistics. Hence keeping in touch with former employees
through an alumni network represents a valuable recruitment tool for organizational success.
 WHY DO COMPANIES MAINTAIN CORPORATE
ALUMNI NETWORKS

Organizations typically build corporate alumni networks with the sole purpose of re-recruiting;
however, investing in such a network can bring ancillary benefits as well: for example, an
increased number of high-quality referrals from alumni in the network and new business
opportunities

� High-performing corporate alumni represent a valuable talent pool —

In a 2005 survey of 100 U.S. organizations, 54% of respondents stated that they had actively
sought to rehire former employees because they bring the following benefits:1,2,3

 Quick time-to-productivity—The onboarding period and time-to-productivity is

relatively short for alumni as they are already familiar with the company’s people,
politics, and processes.

 Experience and insight from other organizations—Returning corporate alumni often

bring back new skills and competencies that can make them more effective in their roles,
or a new perspective that enables them to see process/system inefficiencies in their
alumni employer. They may also bring information about how competitors do business.

� Corporate alumni are relatively cost-effective to rehire —

Pursuing corporate alumni rehires may be a cost effective supplement to using contingency
search firms, particularly for highly technical or specialized positions where talent is in high
demand. Organizations with an established corporate alumni network may not need to hire an
external party for assistance with the first phase of the recruitment cycle (e.g., generating
“names”).

� Corporate alumni can be a good source of candidate referrals —

Even if they do not return as employees, corporate alumni who feel connected to the organization
may be more likely to refer other potential hires. With their understanding of the corporate
culture and certain job roles, they are likely to recommend quality referrals with strong
organization and job fit. 4 Strategies for converting these referrals into hires include building a
competitive employment value proposition (EVP) and leveraging current employees to
communicate the EVP. Further Council research on the importance of crafting a compelling EVP
is available in our study titled Attracting and Retaining Critical Talent Segments.5
� Alumni provide new business opportunities —
Organizations such as McKinsey & Company and Bain & Company report that alumni often
provide new business opportunities through some of the activities listed below:
 Purchasing goods or services from their former organization
 Facilitating strategic alliances between their former employer and their current
employer
 Referring (directly or indirectly) potential customers, resources, and vendors to their
former employer
 BUSINESS DEVELOPMENT AS A CONTACT SPORT
“Business development is a contact sport,” says Attorney Tarlow. “You send your business to
the last person with whom you had positive contact. Whoever has the best strategy and the
tools for developing and maintaining their contacts wins.”

“In the legal world as in other arenas, contact with alumni delivers business referrals, an
important asset particularly in these times of slow or moderate growth,” Tarlow says.
“People simply feel more confident hiring someone they know, or someone personally
recommended.”

Alumni networks also help law firms track the progress of a former employee’s career. If the
individual developed a specific expertise the firm requires, it would have an opportunity to tap
into the individual’s knowledge, form a business alliance, or, perhaps, lure the individual back.

“Employers secure a competitive advantage when they are able to track their alumni,” he
says. In that regard, Tarlow sees that a strong alumni network could help lower recruiting
costs. Firms that need to expand their staff with attorneys with specific skills and experience
usually enlist the help of a recruiter at placement fees of 25% - or more, depending on the
position. On an annual salary of $100,000, the recruiter would get $25,000. “That’s not
insignificant,” Tarlow says.

To understand the magnitude of the expense, imagine that if a professional firm hires eight
new staff members each year at a base salary of $100,000, recruiter fees alone would total at
least $200,000.

Excluding situations that require placement fees, the average cost of replacing an employee is
about $10,000 per position, according to the Employment Management Association. The
Society for Human Resources Management estimates the average cost of a rehire to be $5,000
– and rehires tend to stay twice as long.

On the other hand, a firm can hire a former employee or candidate recommended by a former
employee and save tens of thousands of dollars per hire. Further studies show that new hires are
40% less productive than rehires during the first few months of employment. Therefore,
rehiring former employees or enlisting the assistance of former employees to recruit new
employees should not be ignored.

Human Resource expert Arte Nathan, New Products Thought Leader for Mellon HR Solutions,
advocates the creation of communities to build a company’s success and sees alumni networks as
facilitating that effort.
“Belonging to a corporate community makes sense for both the individual and the
corporation. When you facilitate people coming and going, and assist your community in
staying connected, companies will be able to take advantage of great resources that would
otherwise walk out the door and drop off the radar screen,” Nathan says.

Nathan sees that industries experiencing growth or facing labor shortages, such as healthcare,
would gain a competitive advantage via connections with a community of former employees.
However, that advantage could be experienced by any organization whose success in the
marketplace is a result of the quality of its workforce.

“The important thing here is to build up communities of prospective employees, current

employees and former employees. These communities can give your company a competitive
edge by continuing to add value to your company in conventional -- and unconventional --
ways.”

Nathan points out that alumni include not just people at the start or middle of their careers, but
retirees. Keeping in touch with this group is appropriate because most will maintain some kind
of connection simply because of benefits and investment in the organization. Companies that
embrace a connection with their retirees will earn their loyalty and the opportunity to rely on
the retiree as a source of information, inspiration, and knowledge. Additionally, the retiree may
serve as a referral for new business and potential employees.

In a report on “lost knowledge” in the global chemical industry, worldwide consulting firm
Accenture discusses how the retirement or departure of senior scientists poses a costly and
potentially devastating blow to chemical companies. According to the February 2002 report,
these senior scientists had over the years saved their companies literally millions of dollars
each because of their knowledge about certain processes that came from experience, not
textbooks.

As these scientists retired or left the chemical company, they took with them information that
they had accumulated over the years.

Accenture recommended that chemical companies maintain a tight relationship with their
experts– even hiring them as consultants or retaining them on an as-needed basis -- to transfer
information, serve as mentors and be available as sources of knowledge and advice as needed.

Research Fellow David DeLong writes, “In the current economy, it will be tempting for leaders
to give in to the demands for short-term financial performance. But savvy executives recognize
that they also must champion more costly knowledge retention strategies because some of their
units could be headed for a point of no return in a few years.”
The lesson could well be applied to many other knowledge-based industries.

While it’s clear that alumni networks can play a key role in an organization’s success, it’s
important to remember that not just any kind of network will do. The costs of running a manual
or unstructured alumni network can be high. Alumni networks that automate repetitive tasks
and shift the maintenance of contact information to former employees will deliver a return on
your investment.

The methods most companies have used to keep in touch with their alumni have, until
recently, been primarily informal, inefficient, and left to individuals to create – rather than a
company-wide initiative. But as Tarlow says, “If you don’t have the database or tools, it’s very
time-consuming. There’s no immediate return on your investment.”

Tarlow cites the act of sending a holiday card to former employees as a simple gesture that
shows employees you remember them and valued their service. It can have positive results, as
long as sending the card isn’t a time-consuming, costly process.

Automated alumni networks can also handle registration, event management, job postings
and news publication with minimal staff intervention.
 ACTIVITIES CONTRIBUTING TO AN
EFFECTIVE CORPORATE ALUMNI NETWORK

Organizations face three main challenges when managing their alumni hiring programs: gaining
the active participation of alumni in the network, targeting re-recruiting efforts at the alumni
segments most likely to drive quality of hire, and monitoring the health of and returns from the
network. Listed below are a few guidelines that companies may wish to consider as they
confront these challenges.

• Drive Active Participation in the Network

1. Highlight compelling value proposition for participation in the network

—Organizations often spend a significant amount of time/resources creating their
corporate alumni network, but underinvest in marketing strategies to increase
participation rates. One method for driving interest in the initiative is to highlight
the benefits of joining the network, some of which include following:

 Access to a group that engages in social events, professional training,

volunteering, and/or provides an opportunity for alumni to share information on
jobs and careers, as well as leads and references for business ventures
 Discounts on products or services

2. Make employees aware of the corporate alumni network during the exit
process—Internal analysis from organizations such as Ernst & Young suggests that
the vast majority of alumni return to the organization soon after their initial
departure; thus, organizations may want to provide employees with the following
information during the exit proces: sign-up procedures, network benefits, and scope
of the network (see page 3 for further details from Ernst & Young alumnirecruiting
outreach program).

• Target the Alumni Segments Most Likely to Drive Quality of Hire

3. Focus on high-value corporate alumni segments—Focusing efforts on

former employees who were top performers, or those who demonstrated a strong
commitment to the job or company, helps ensure a higher quality of network
members. In addition, some organizations extend the scope of their corporate
alumni program to include those who were not permanent, full-time employees,
 such as interns or contractors. The list below suggests employee segments to target
for the program:
 Top performers who left voluntarily
 Individuals who occupied key positions
 Individuals with key skills, contacts, or experience
 Individuals leaving to pursue further education in disciplinescritical to company
operations
 Retirees who may wish to return to employment
 High-performing interns or contractors

• Build a Dashboard to Measure Overall Program Success and Track

Alumni Segments that Generate Large Number of Quality Re-hires

4. Build and monitor metrics specific to the alumni network program—

Building a dashboard with program-specific qualitative and quantitative metrics
helps companies to monitor the overall health of their network and also make
principled decisions on where to over- or under-invest in the future (e.g., former
high performing interns/contractors may have a higher conversion rate than top
performers who left voluntarily, so companies would therefore host more events for
this segment). A list of potential metrics is included in the table below:

Table 1: Checklist of Alumni Network Metrics

Quantitative Qualitative Metrics

Metrics
 9 Cost per hire of corporate alumni vs. regular 9 Employee engagement levels of
hires corporate alumni vs. hires from other
9 Time to fill for corporate alumni vs. regular channels
hires 9 Additional skills and experiences brought
9 Number of corporate alumni entered in to the
program database organization as a result of rehiring
9 Number of corporate alumni hired corporate alumni
9 Number of referrals made by corporate alumni
9 Number of hires generated by corporate alumni
referrals
9 Retention rate for corporate alumni

CASE STUDY

Alumni linked in to old firms

This is a summary of an article originally published by L.M. SIXEL in the Houston

Chronicle on Feb 3rd 2010.

Janet Roth wasn't looking for a new job. But her neighbour, a former colleague at Deloitte,
encouraged Roth to join the firm's online network for former employees and retirees. Roth had
worked at Deloitte for seven years, leaving in 1996 to join one of its clients. Late one night Roth
was scrolling through Deloitte's alumni site and saw a job opening that sounded interesting. She
applied, went through a streamlined interview process and rejoined Deloitte in 2007. She joined
the network mostly for social reasons, “but I ended up with a job,” said Roth, who is now senior
manager in the mergers and acquisitions group in Houston. It used to be that when you walked
out the door that was it. The working relationship was over once you turned in your ID badge
and collected your last paycheck.

But many companies are reconsidering that strategy. After all, skilled employees aren't that easy
to find, especially ones who know the corporate culture. So companies have taken a page from
social sites and launched their own alumni networks. The online sites, which typically are
controlled by individual companies like Deloitte, are a way for ex-employees to connect with
their former bosses and former co-workers — and maybe boomerang back, often with newly
acquired skills.

New skills
It's efficient, said Cathy Clonts, president of Alumni Web Services, which designs alumni
networks for corporate clients. Members update their contact information and any new skills they
acquire. Companies, in turn, can data-mine to find the skills they're looking for.

It's also a way a company can promote its own brand to a group that is already loyal, Clonts said.
Deloitte likes to refer to the members of its AlumNet as “colleagues for life,” said Coleman
Rowland, a partner in energy and resource practices in Houston. He said Deloitte's alumni
network has become such an important business imperative that the firm has seven regional
alumni network coordinators around the nation who keep up with the entries. Of the 100,000
alumni nationwide who left the firm in good standing and are eligible to join Deloitte's network,
56,000 have registered. Of those, 4,000 are in Houston.

No more ledgers

In the past the firm kept up with its former employees by updating addresses in ledgers and
spreadsheets. But that wasn't easy, especially when people move so frequently. Roth, for
example, moved from Houston to Minnesota to Florida and back to Houston in a series of
corporate transfers. “Deloitte lost track of me, raising three kids,” she said with a laugh. It took
running into Rowland, who mentioned the network, for Roth to reconnect with her old firm.
Clients and other “friends of the firm” can't get onto the network to troll for possible job
candidates, but the firm does list its job openings as a courtesy. That's how one of its clients, a
non-profit, found its controller, Rowland said. And it didn't have to pay any recruiting fees.

The Deloitte network, which is more LinkedIn than Facebook, isn't set up as a chat site or a place
to extol the pleasures of retirement. Members, however, can send e-mails to each other through
the Deloitte server. “It's a way to really expand your network,” Roth said.
 CONCLUSION

A company alumni network is made to remain in contact and maintain relationships with former
employees. This offers organizations a new resource for enhancing organizational capabilities.
Though making formal corporate alumni networks has recently become very important, they
have been loosely formed and utilized since as long as there have been companies and
employees who leave them – by letter mailings, volunteer groups, gatherings etc.

Adding to this social networking is redefining the way we interact with colleagues, corporate
alumni and business partners. Forward-thinking employers recognize that investing in life-long
relationships through comprehensive alumni programs carries measurable value in recruitment,
employment branding and new business development.

Companies have realised that alumni provide an inside track to new business opportunities. It
can also be highlighted that alumni who are re-hired stay longer and cost less to onboard than
talent new to the organization. Also, Alumni provide great referrals, and are excellent, often
proactive, ambassadors for the company brand.

In short these networks are very beneficial to the companies as well as the alumnis due to which
its becoming more popular and very important. Few companies that have seen the trend and
adapted to it are – Deloitte, Ernst & Young, McKinsey & Company and Bain & Company.

Thus, Alumni networks are seen as:

- A key potential driver of competitive advantage for employers

 - A rich untapped source of innovation, human talent and business relationships
- Still emergent (in most sectors) and hence demanding clear management focus

AKNOWLEDGEMENT
We would like to thank Ms. Yesha Sheth for giving us this topic. We would also like to thank
her for her guidance and support throughout the project.

BIBLIOGRAPHY
www.selectminds.com

www.clc.executiveboard.com

www.xing.com

www.firsttuesday.ch

www.wikipedia.com

www.encyclopedia.com
CREDITS

YASH AGARWAL – 62

PAWAN

KINNARI MEHTA

VINAYAK RAJPUROHIT

NIYAM HARIA

MILONI SHAH - 106