The value of former staff
Exercise
For a long time, the value of their network of former alumni and employees has been well understood by top universities and auditing and consulting firms. An increasing number of firms are developing conscious policies to keep their network of former employees in good shape.
There is at least one firm (SelectMinds) specializing in managing these networks, designing different communication strategies for different groups of former employees (“SelectMinds was built on one principle—great relationships are the power behind great business. We specialize in building alumni solutions that help global corporations maintain lifetime relationships with their former employees. Let SelectMinds show you how our corporate alumni solution can help you improve your existing marketing and HR efforts. We will design and implement a custom corporate alumni solution optimized to your needs. Our industry expertise and strategic focus will give you a hassle-free, best-of-breed solution. It’s a strategic decision that will quickly pay for itself.”).
(a) How do you explain the increased interest in former employees?
(b) Visit http://selectminds.com and find out more about how it works.
Analysis
a) The interest of firms probably increases with increased employee turnover and increased specific human capital. Both have always been a feature of universities, auditors and consultants. Firms use the network when recruiting, both to rehire people and to get recommendations. In a way, the network of former employees avoids the destruction of specific human capital. Perhaps in all cases, but specially so in the case of universities, there is also the production of a common good in the form of network externality (?).
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