Just Say No

As business volumes fluctuate and companies try to find their optimum staffing levels, the question of whether or not to rehire a former employee is becoming increasingly common. Billie Morgan Allen, Ph.D., professor of management at The University of Southern Mississippi in Hattiesburg, says there are advantages and disadvantages to consider.

On the plus side, it's possible to reduce the chance of making a hiring mistake because you know the former employee's skills, abilities and working style. "You know the person, and they know your system," says Allen. "If they were successful before, it eliminates the risk in hiring."

However, she cautions that you need to carefully consider why they left, what they've been doing in the meantime, and why they want to come back. In these days of low unemployment, you may be tempted to rehire a marginal employee because you need bodies, or you may have allowed yourself to forget an individual's undesirable traits. That can be dangerous, Allen says, from both a quality perspective and because of the impact on the morale of other employees.

When hiring, it's a good idea to take a close look at former employees. But, says Allen, "Be careful. Think it through, and make sure you have all the facts."

This article was originally published in the December 1997 print edition of Entrepreneur with the headline: Just Say No.