What is your Alumni concept?

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When employees leave a company, often all contact between the company and them does not end abruptly. Instead, there are often follow-up obligations to be fulfilled by one or both sides. Perhaps there is a conscious desire to maintain and cultivate contact. In short, the ex-employee is managed as an alumnus, not ignored as a stranger. What is known about such alumni concepts? Which companies have implemented it? What precautions in terms of policies, processes and systems does a company have to take if it wants to introduce an alumni concept?

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Introduction

Alumni programs are increasingly common in companies that recognize the value of maintaining relationships with former employees. These initiatives aim to foster a sense of community, promote networking, and potentially benefit from the knowledge, skills, and connections of former employees. Some well-known companies with alumni programs include McKinsey, Deloitte, PwC, IBM, and Microsoft, among others.

What has to be done?

Which components need to be in place in order for an alumni program to be professionally implemented.

When introducing an alumni concept, a company should consider the following policies, processes, and systems:

1. Define the objectives: Clearly outline the goals of the alumni program, which could include networking, knowledge sharing, recruitment, business development, or maintaining a positive brand image.
   
   
2. Establish policies Develop clear policies on eligibility, communication, and engagement. Determine which former employees can join the alumni network and establish guidelines for how members should interact with the company and each other.
   
   
3. Designate a responsible team: Assign a dedicated team or individual to manage the alumni program, ensuring regular communication, organization of events, and maintenance of the network.
   
   
4. Develop a communication strategy: Create a strategy for keeping alumni informed about company news, updates, and events. This may involve a mix of email newsletters, social media, or a dedicated alumni portal on the company website.
   
   
5. Organize events: Plan and host regular events, both virtual and in-person, to facilitate networking and knowledge sharing among alumni and current employees. These events can include seminars, workshops, social gatherings, or webinars.
   
   
6. Offer benefits: Provide incentives for alumni to stay engaged, such as access to exclusive resources, training, or job opportunities within the company. Some companies even offer special alumni discounts on products or services.
   
   
7. Integrate with HR and recruitment: Collaborate with HR and recruitment teams to leverage the alumni network for talent acquisition, referrals, or rehiring of former employees with valuable skills.
   
   
8. Measure success: Regularly evaluate the effectiveness of the alumni program by tracking key performance indicators (KPIs), such as the number of active members, event attendance, referrals, or business leads generated through the network.
   
   
9. Maintain data privacy: Ensure that the company complies with data privacy regulations and respects the privacy preferences of alumni members. This may involve obtaining consent for communication, providing options to opt-out, and securely storing personal data.
   
   
10. Encourage a culture of support: Promote a positive and inclusive atmosphere that values the contributions of alumni and encourages current employees to engage with and support the alumni network.

Implementing an alumni program can be an effective way to strengthen relationships with former employees and potentially benefit from their skills, knowledge, and connections. By taking these precautions in terms of policies, processes, and systems, a company can successfully introduce and manage an alumni concept.

What are the benefits?

Are there tangible benefits for corporations associated with the implementation of an alumni concept?

There are tangible benefits for corporations associated with the implementation of an alumni concept beyond occasional re-hiring. A well-executed alumni program can have a positive impact on the company's bottom line and even make a strong business case. Here are some key benefits that can contribute to a business case for an alumni program:

1. Talent Acquisition and Referrals: Alumni can serve as valuable referral sources for new talent, helping the company identify high-quality candidates who may be a good fit for open positions. This can reduce recruitment costs and time to hire.
   
   
2. Business Development: Former employees who work in other companies or industries can refer new clients or business opportunities to their former employers. This can help drive revenue growth and expand the company's client base.
   
   
3. Brand Ambassadors: Alumni can act as brand ambassadors, promoting the company's reputation and strengthening its employer brand in the talent market. A positive image can attract high-quality candidates and improve overall recruitment efforts.
   
   
4. Knowledge Sharing and Innovation: Alumni networks can facilitate the exchange of ideas, insights, and expertise between former employees and current staff members. This can help foster innovation, improve decision-making, and keep the company informed about industry trends and best practices.
   
   
5. Collaborative Partnerships: Alumni can become strategic partners, offering their skills, expertise, or resources to support the company's projects or initiatives. This can lead to new business opportunities, joint ventures, or collaborations that drive growth and innovation.
   
   
6. Training and Mentorship: Former employees with specialized skills and experience can provide training or mentorship to current employees. This can help develop the skills and capabilities of the workforce, leading to increased productivity and performance.
   
   
7. Alumni Re-hiring: As mentioned earlier, re-hiring former employees can save on recruitment and onboarding costs, and these employees often have shorter ramp-up times due to their familiarity with the company culture and operations.
   
   
8. Community Engagement: A strong alumni program can foster a sense of community and goodwill, leading to increased engagement among current employees, stronger company culture, and improved employee retention.

To make a business case for an alumni program, companies can quantify the potential benefits in terms of cost savings, revenue growth, and other performance indicators. By demonstrating the tangible benefits and return on investment, organizations can justify the resources needed to implement and maintain a successful alumni program.

Who benefits?

Do some companies benefit more than others?

There is evidence to suggest that some companies may benefit more from the implementation of an alumni concept than others. The extent of the benefits depends on several factors, including the nature of the industry, company culture, workforce structure, and business objectives. Here are some factors that can influence the success and impact of an alumni program:

1. Industry: Companies in industries with a high demand for specialized skills or rapid innovation, such as technology, consulting, or finance, may benefit more from an alumni network as they can tap into a pool of experienced professionals who possess in-demand expertise.
   
   
2. Company Culture: Companies with a strong, positive culture that fosters long-term relationships and values employee contributions are more likely to benefit from an alumni program. Alumni from such organizations may feel a stronger sense of loyalty and connection, which can lead to increased engagement and collaboration.
   
   
3. Workforce Structure: The influence of workforce structure, characterized by skill level, experience, age, and blue-collar vs. white-collar workers, can also impact the effectiveness of an alumni program. Companies with a predominantly white-collar workforce, higher skill levels, and more experienced professionals may benefit more from an alumni network, as these individuals may be better positioned to contribute to knowledge sharing, referrals, and business development.
   
   
4. Turnover Rate: Organizations with high employee turnover may benefit more from an alumni program, as they can maintain relationships with former employees and leverage their expertise, connections, or referrals to fill open positions or address skills gaps.
   
   
5. Size of the Organization: Larger organizations with more employees and a more extensive network of former employees may benefit more from an alumni program due to the broader reach and potential impact of their alumni community.
   
   
6. Business Objectives: Companies that prioritize innovation, collaboration, and talent acquisition may benefit more from an alumni program, as these objectives align with the potential benefits of maintaining relationships with former employees.

While these factors can influence the success of an alumni program, it's important to note that the program's design, management, and engagement strategies also play a critical role in determining its impact.

Companies that invest in creating a well-structured and engaging alumni program tailored to their unique needs and objectives are more likely to realize the potential benefits, regardless of the industry or workforce structure.

Is there System Support?

Are there systems for Alumni support on the market?

There are several other companies that offer products or services to support corporate alumni programs and processes. These providers typically offer platforms or software solutions to help organizations manage alumni networks, communication, events, and engagement activities. Some of these companies include:

1. EnterpriseAlumni: EnterpriseAlumni is a leading alumni management platform that enables organizations to engage with their alumni community, providing tools for communication, event management, content sharing, and reporting. The platform also supports talent acquisition, business development, and collaboration features.
   
   
2. IntraWorlds: IntraWorlds offers a comprehensive alumni management solution that includes customizable alumni portals, communication tools, event management, and analytics. The platform is designed to help organizations build and maintain relationships with their alumni community, fostering collaboration and driving business outcomes.
   
   
3. Graduway: Graduway is a provider of alumni engagement and mentoring software, helping organizations build and manage their alumni networks. Their platform includes tools for communication, event management, mentoring, and analytics, as well as integrations with popular CRM and HR systems.
   
   
4. Almabase: Almabase is an all-in-one alumni management platform designed to help organizations create and maintain an engaged alumni community. The platform offers features such as alumni directories, event management, email marketing, fundraising, and reporting, along with integrations with various CRM and HR systems.
   
   
5. 360Alumni: 360Alumni offers an alumni engagement platform with features such as alumni directories, event management, email marketing, and fundraising tools. The platform is designed to help organizations build and maintain strong relationships with their alumni community.
   
   
6. Tassl: Tassl is an alumni engagement platform that provides organizations with tools to manage alumni networks, events, communication, and collaboration. The platform supports features such as mentoring, job boards, and community building, as well as integrations with popular CRM and HR systems.
   
   
7. PeopleGrove: PeopleGrove offers a platform designed to support alumni networks, mentoring programs, and community engagement. Their solution includes features such as personalized portals, communication tools, event management, and analytics, along with integrations with various CRM and HR systems.
   
   
8. Vaave: Vaave is an alumni management platform that helps organizations build and maintain relationships with their alumni community. The platform offers features such as alumni directories, event management, email marketing, fundraising, and reporting, as well as integrations with popular CRM and HR systems.
   
   
9. Alumni Channel: Alumni Channel provides a web-based alumni management solution that helps organizations create, manage, and maintain their alumni networks. Their platform includes tools for communication, event management, directories, and reporting.

These companies offer products and services that support alumni processes, making it easier for organizations to manage their alumni networks, engage with former employees, and leverage the potential benefits of an alumni program.

In addition, the San Francisco based Okta, Inc. known for the alumni support through the software it offers.

When selecting an alumni management platform, it's essential to consider factors such as features, scalability, integration capabilities, and pricing to ensure the solution meets the organization's specific needs and objectives.

What signals to watch?

Are there signals to watch, leading to the conclusion that an alumni concept might be worth a closer look?

A closer look at the process of a person leaving the company may already reveal a fine structure leading to a differentiated treatment of the individual cases.

This fan-out of caring options gives an indication that there might be a status in-between the status of being an active employee and having terminated all relationship between both parties as the example below demonstrates.

While all of the following cases are expressed being in status “terminated” or “permanently inactive” in the Human Resources department, variants may be maintained, leading to different actions following an employee’s active period.

Will there be a relationship maintained between the corporation and the individual, when …

• The person is regularly retired? ➤ Yes, there might be a pension scheme to follow
  
  
• The contract is terminated for other reasons? ➤ No, once all legal obligations are fulfilled
  
  
• The person is on paid leave? ➤ Yes, obviously payments have to be done
  
  
• The person is reported as a “No Show”? ➤ No, there is no longer a legal basis to keep any records
  
  
• The person enters early retirement due to special local ruling? ➤ Yes, similar to regular retirement, but stricter rules apply
  
  
• The person is in the passive phase of a partial Retirement? ➤ Yes, as some special part-time pension scheme applies here
  
  
• “Persona non grata” ➤Well, no, in this case there will be no desire to maintain a relationship due to some possibly unpleasure events in the past.
  
  
• Long Term Account ➤ Yes, this special case, where the retirement can be flexibly deposited on a kind of “savings account” will finally lead to case #1 (retired).

Several of these examples are sending weak signals already that it is justified to consider introducing an intermediate status between being an active member and terminated all relationship: the status “alumnus”.

But there are more reasons for taking the Management of the corporation’s alumni into consideration. Several external factors are currently driving corporations towards the implementation of an alumni concept. These factors include the changing talent market, rising costs of personnel fluctuation, digital transformation, and a general cultural shift.

1. Changing Talent Market: The talent market has become increasingly competitive, with companies vying for the best talent to drive innovation and growth. The alumni concept enables corporations to tap into a pool of skilled and experienced professionals, who are already familiar with the company culture and operations. This can help businesses address skills gaps, reduce the time and cost of recruitment, and secure high-quality referrals.
   
   
2. Rising Cost of Personnel Fluctuation: High employee turnover can be costly for organizations, as they need to invest in recruitment, onboarding, and training for new hires. By implementing an alumni program, companies can maintain relationships with former employees, which may lead to rehiring or referrals of suitable candidates. This can help reduce the costs associated with personnel fluctuation and ensure a smoother transition during periods of change.
   
   
3. Digital Transformation: The rapid pace of digital transformation has increased the demand for employees with specialized skills in areas such as data analysis, artificial intelligence, and cybersecurity. The alumni concept can help organizations stay connected with former employees who have developed these skills and may be interested in returning or collaborating on projects. Additionally, alumni networks can facilitate knowledge sharing and innovation, as former employees contribute their expertise and insights gained from other industries or companies.
   
   
4. General Cultural Shift: There has been a cultural shift towards valuing long-term relationships and recognizing the potential benefits of maintaining connections with former employees. Companies are increasingly acknowledging the contributions of alumni and the role they can play in driving business success. This shift is driving the adoption of alumni programs as a way to foster goodwill, promote brand loyalty, and leverage the expertise

All four of these external factors should be felt in different corporations to a varying degree. However, they would need a confirmation through a thorough research cantered around the feedback from those of a company’s departments, which are potentially exposed to those external factors.

Call to action

What should be done next?

If your company is thriving in an industry sector with a high demand for specialized skills or rapid innovation, if its workforce consists predominantly of white-collar workers of higher skill levels, and of more experienced professionals, if it prioritizes innovation, collaboration, and talent acquisition -then it may benefit more substantially from an alumni program than others.

The considerations laid out in this paper were triggered by the necessity to find a conceptual foundation for a variety of follow-up activities in case a person leaves a company’s ecosystem. However, the full potential of maintaining an appropriate relationship to former members of the community, might they have been employees, apprentices, contingent workers or even external contributors, will only be unleashed, if the full concept will be implemented.

To start with conducting a 6-weeks pre-study resulting in a fully fleshed-out implementation plan would be helpful. This preliminary study should cover the first four points of the implementation plan as outlined below plus effort, elapsed time, costs and manpower involved.

Proposed implementation plan

How could a typical plan for the introduction of an alumni concept look like?

Introducing an alumni program requires a strategic approach, with a clear plan and timeline to ensure its successful implementation. Here's a typical plan for the introduction of an alumni concept and its maintenance once all processes and systems are up and running (points 10 to 12):

1. Conduct a Needs Assessment and set Objectives: Evaluate the potential benefits and goals of the alumni program by identifying the company's needs and priorities. Define clear objectives, such as knowledge sharing, recruitment, business development, or networking.
   
   
2. Obtain Management Buy-In: Present the proposed alumni program to key stakeholders and obtain management support. Clearly communicate the benefits and objectives of the program and demonstrate how it aligns with the company's overall strategy.
   
   
3. Define Policies and Guidelines: Establish policies and guidelines for the alumni program, addressing issues such as eligibility criteria, data privacy, confidentiality, and the scope of benefits and services provided to alumni.
   
   
4. Appoint a Program Manager or Team: Designate a dedicated team or individual(s) to manage the alumni program. This team will be responsible for coordinating communication, events, and other program activities.
   
   
5. Develop a Communication Plan: Create a communication plan that outlines the channels and frequency of communication with alumni. This may include newsletters, social media groups, or a dedicated alumni portal.
   
   
6. Design the Alumni Engagement Strategy: Develop a strategy for engaging alumni through various activities and opportunities, such as events, webinars, networking sessions, mentorship programs, or training and development resources.
   
   
7. Implement Data Privacy and Security Measures: Ensure compliance with relevant data privacy regulations and establish data retention policies. Implement secure systems for storing and managing alumni data.
   
   
8. Collaborate with HR and Talent Acquisition Teams: Integrate the alumni program with HR and talent acquisition processes to leverage the alumni network for referrals, rehiring, and mentorship opportunities.
   
   
9. Launch the Alumni Program: Announce the launch of the alumni program to current and former employees. Invite eligible alumni to join the program and provide clear instructions on how to participate.
   
   
10. Execute the Engagement Strategy: Begin implementing the planned engagement activities, such as hosting events, sharing newsletters, and organizing networking sessions. Monitor participation and gather feedback to improve the program.
    
    
11. Track Performance Metrics: Measure the success of the alumni program by tracking key metrics, such as the number of participants, event attendance, referrals, and business partnerships generated through the alumni network.
    
    
12. Review and Refine the Program: Regularly review the alumni program to ensure it remains relevant and engaging. Update the program based on feedback, performance metrics, and changing company objectives.

By following this plan, companies can create a well-structured alumni program that maintains strong relationships with former employees and leverages the potential benefits of their experience, knowledge, and connections.