How to Rehire an Employee in 2024 [+Checklist] (2024)

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If you're debating on whether you should rehire an employee who previously worked with you, here are several benefits this might bring:

• Higher Retention Rates:Rehired employees may have a higher retention rate when they return to your organization. The fact that an employee wants to return also emphasizes to current employees that they work for a great organization.

• Expedited Onboarding:Theonboarding processwill be easier and faster as the rehired employee will already be familiar with the company and its functions.

• Alumni Network / Brand Ambassadors:You demonstrate that your organization invests in great talent by rehiring an employee. You also increase your talent pool to include all former employees who may return with new skills and experience.

Policies to Rehire Employees

Rehiring an employee can also present challenges. To mitigate these challenges, create a rehire policy to ensure consistency across the organization. This policy is essential if you are rehiring laid-off employees on an annual cycle for seasonal work or only occasionally.

Why & How Did They Leave?

Do your research into why they left the organization in the first place. Ask their previous manager or the HR professional who supported them. This information will give you some insight into the former employee's experience at the organization.

If they left on unfavorable terms, you should proceed with caution. You can use thetermination featureof an HRIS system to report why an employee left, which you can use to determine if they should be considered for rehire in the future. This feature can be helpful when the employees' prior manager is no longer at the organization.

Are They Eligible for Rehire?

Employees who left involuntarily (i.e. through a layoff) are only usually eligible for rehire if those reasons were outside their control, such as restructuring. Employees eligible for rehire after termination usually left voluntarily and on favorable terms.

Will You Honor Their Previous Time At the Company?

This is important as it often impacts the employee's eligibility for other policies, such as additional paid time off, waiving thehealth benefitswaiting period, and other perks provided to tenured employees. You'll need to ensure the employee understands how your decision to honor (or not to honor) will impact them.

How Much Will You Pay Them?

You'll need to pay them based on their new role rather than their previous compensation.

Are You Recruiting Fairly?

Follow anequitable hiring processand evaluate the rehire fairly against other candidates to prevent any discrimination claims.

The Process to Rehire an Employee

It's best practice to reissue all the letters and forms you send to a new hire. Here are some specific documents that you should consider for the rehire process:

Offer Letter

Provide your rehire with an offer letter. It should include the latest start date and any special terms. You need to indicate whether you will consider their previous time with the company in their tenure or seniority. You can edit your offer letter template and send it to them for signature through an HRIS platform likeGoCo, making it easy to keep all the files in one place, even for employees that left and rejoined.

Job Description

You should provide a job description, even if the rehire will return to the same role. The position's responsibilities and requirements may have changed, so setting expectations upfront is essential.

Form I-9

You can fill out a newForm I-9or fill out Section 3 on the employee's original I-9 Form.

Has it been over three years since the rehire's original hire date? If so, you'll need to complete a new Form I-9.

Has it beenlessthan three years since their original hire date? You'll need to keep the Form I-9 for three years after the rehire date or one year from their termination date (whichever is later). You should keep all these forms in the employee's file.

Form W-4

You must keep an employee'sForm W-4for four years after the hire date. As part of rehiring an employee, it's best practice to have the employee+ fill out a new Form W-4. You should keep both forms on file. It may seem cumbersome to ask your employee to fill out a new W-4, the process is simple with an HRMS platform likeGoCo. You can also utilize GoCo'sfree toolto collect the W-4.

Onboarding Forms

Your rehire is still anewhire, so sending them all theonboarding documentsis essential. They have been away from the organization, so don't assume they will remember how to enroll in the health insurance plan or for retirement benefits. Save time with your rehire process by sending these documents throughGoCo.

If you're bringing back furloughed employees, we recommend using anoffer letter templateto communicate any new employment terms and any efforts from the company to assure their safety at the workplace.

Common Mistakes When Rehiring an Employee

Forgetting to Check Work Authorization

Although the employee had a work authorization before, it's essential to double-check that it's still valid. You should ensure that you have the most up-to-date documents on file.

Ignoring Name Changes

Did your employee change their name before they rejoined? Ensure their employee profiles are linked, and their email address and other identification reflect their new name. Ensure all additional information is current, including their home address, contact information, etc.

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Rehiring an employee has many benefits for your organization, and it can be simple if you know how to do it. By using an HRIS platform likeGoCo, you can reduce the burden of completing all of the paperwork again so that you can focus on the rehire's reintegration.

Updated 2/1/2024