Companies, like lovers, do not enjoy being dumped. Security guards may escort workers out of the building, confiscating their smartphones and deactivating their e-mail accounts. Former employees, on the other hand, are increasingly considered as assets rather than as traitors in the professional services. Using the concept of “Alumni Center” from colleges, companies like McKinsey are attempting to maintain contact with former employees in the hopes of converting them into brand ambassadors, recruiters, and salespeople. Employees would, then, leave on good terms, with many of them going to work for potential clients rather than competing consulting businesses. McKinsey has a database of thousands of former consultants available online. They have access to a website that features enticing employment openings as well as regular presentations by the firm’s analysts on business trends.
This model has also been adopted by McKinsey’s closest competitors. It assists them in finding new jobs and negotiating a favorable deal with their new bosses. They continue to receive free strategic guidance from the firm’s partners after they have left. In exchange, they encourage alumni to assist in the recruitment of fresh graduates and to update them on the state of the industries in which they now work. And, of course, it hopes that they will send some work its way.
One obvious concern is that businesses may be hesitant to hire ex-consultants, thinking that they will be double agents loyal to their previous employer. The consulting firms say that there is little risk of this happening: few organizations engage or buy advice from just one firm, thus it would be difficult for graduates of one firm to get away with favoring their former employers unjustifiably.
Some consulting companies go even the extra mile, assisting departing employees in updating their curriculum vitae in the hopes of encouraging them to stay in touch; not unusual also to recruit former employees who want to return part-time or for one-off projects. Fair to say that such strong ties have also the potential to be a double-edged sword, should former alumni run into trouble. Let’s think of two separate past instances: the collapse of MF Global. One of Goldman’s illustrious ex-bosses, tarnished Goldman’s reputation as Wall Street’s leading financial wizard ($891 million improper transfers from customers a MF broker-dealer account to cover losses created by trading losses). Or McKinsey’s reputation for integrity was tarnished when Rajat Gupta, a former managing director of the firm, was convicted of insider trading.
The cost of maintaining an alumni network is no longer as expensive as in the past, thanks to social platforms. Companies now only need one programme manager for at least 3, 000 ex-employees. As a result, the trend is spreading further.
Although the return on investment from alumni networks is difficult to evaluate, management consultants are advising organizations of all sizes to establish them. Customers who haven’t done so should view their former employees as an untapped, hidden asset that isn’t completely exploited.