Picture this: Your coworker gets laid off in January. By October, they're back at their old desk—sometimes with a better salary than before. Sound familiar?
Welcome to the world of the "layoff boomerang," and it's happening more often than you might think.
The Numbers Tell a Surprising Story
Recent research from workforce analytics firm Visier reveals that 5.3% of laid-off employees eventually get rehired by the same company. While that might not sound like a huge number, here's what's really eye-opening: this isn't a new trend. It's been happening consistently for years—we just didn't have the data to see it.
Dr. Andrea Derler, who conducted the research, was surprised to discover this pattern has been steady through the pandemic and beyond. We're only talking about it now because we finally have the data to prove what many suspected all along.
Why Does This Keep Happening?
The typical layoff boomerang returns within six to ten months. That timeline isn't random—it reveals something important about how companies make decisions.
Most organizations plan only six to twelve months ahead, which creates a serious blind spot. When layoffs happen, companies often don't have a clear picture of what skills they're actually losing. They may cut positions based on budgets and headcount rather than strategic needs.
By the time leadership realizes they still need those specific skills, half a year has passed. They've restructured, reassessed, and suddenly discovered they never should have let those employees go in the first place.
The solution? Try to bring them back.
The Real Cost for Employees
Being laid off is traumatic enough. But layoff boomerangs are often high performers—people who did everything right and still lost their jobs. The emotional toll doesn't just disappear when they get the call to return.
One former employee shared her story: After being laid off in 2018 when her entire website shut down, she was eventually rehired as a contractor with no benefits. When she finally became a staff member again, another round of layoffs hit months later. She was let go for the second time.
Another worker described being laid off after 3.5 years, only to be contacted months later about a three-month contract. After nearly ten months without work and depleted savings, they accepted—even at reduced pay—hoping it would lead to something permanent.
The reality is that many boomerang employees don't stay long. The trust has been broken. Even if they return out of necessity, they're often still looking for their next opportunity.
What It Costs Employers
Companies might think rehiring former employees is a simple fix, but the financial impact tells a different story.
Layoff boomerangs typically earn 3% more than employees who never left, and 5% more than what they were making when they were laid off. That premium adds up quickly, especially when you factor in the disruption caused by the initial layoff.
There's also the ripple effect to consider. When one person gets laid off, others start looking around nervously. Is my job next? Should I start updating my resume? This "turnover contagion" can lead to voluntary departures, compounding the talent loss.
What Can Be Done?
If you're considering returning as a layoff boomerang, ask for a reentry interview. This isn't just a formality—it's your chance to ask tough questions:
- How confident is the company that this role is secure?
- What's changed since I left?
- Is another layoff on the horizon?
For companies, the solution is clearer: better workforce planning. Understanding employee skills, thinking long-term, and using data to make strategic decisions can prevent the costly cycle of laying off and rehiring the same people.
Layoff boomerangs aren't just a quirky workplace trend—they're a symptom of short-term thinking and inadequate planning. For employees, returning can feel like a second chance, but it comes with legitimate concerns about stability and trust. For employers, the disruption and added costs should be a wake-up call.
At the end of the day, we're talking about people's careers and livelihoods. With better planning and a clearer understanding of the skills within their workforce, companies can avoid creating boomerangs in the first place.
Because the best employee retention strategy is simply not laying off the people you're going to need six months from now.