Gharwapsi: India Inc taps former talent pool to fill executive positions

There has been a growth in the number of boomerang employees over the last few months; experts say the trend of 'great resignation' has now evolved into the 'great regret'

The “boomerang employees” trend is now playing out with some of India's large companies, as more see benefit in tapping their former talent pool for senior executive hirings.

Last month, Vedanta announced its former acting chief financial officer (CFO) Ajay Goel would return to the firm for a second stint. The metals-to-oil group said this was part of its ongoing “Gharwapsi (homecoming)” programme.

Vedanta isn’t the only firm running an initiative of this kind.

Kartik Narayan, chief executive officer-staffing at Teamlease, said many companies had started to maintain active alumni networks to keep connections with their former employees. “These networks can serve as talent pools for rehiring,” he said.

Viswanath P S, managing director (MD) and chief executive officer (CEO), Randstad India, notes significant growth in the number of boomerang employees over the last few months as the trend of great resignation has now evolved into “great regret”.

“When it comes to senior executives, the ongoing business volatility in many industries has caused leaders to switch jobs and sectors to explore newer markets, innovative offerings, and business models. … However, some of these executives tend to return to their previous employers a year or two after leaving for a variety of reasons,” he said.
 

Other large companies where senior consecutives have returned for a second stint include Adani Cement and Shree Cement.

In Adani's case, the conglomerate has leveraged the target company’s former employee with its cement acquisition. In September 2022, Adani Cement brought back Ajay Kapur to Ambuja Cements and ACC in the role of CEO of Adani Cement. Adani Group acquired the two cement units in September 2022, with which Kapur also started his second stint at Ambuja-ACC. Kapur left Ambuja Cements in 2019 as MD and chief executive officer CEO.

According to people in the know, Shree Cement has appointed its former chief financial officer Ashok Bhandari as senior advisor this financial year. Bhandari is known in the cement industry circles as a finance veteran and has served as CFO for Shree Cement up to 2014.

Viswanath of Randstad said companies also now value second-stint employees as “after having worked in different sectors after their exit, these executives bring with them refreshed skills and alternate perspectives which could further propel the growth of the organisation."

Narayan from Teamlease said: “Former employees, especially those from senior management, are already familiar with the company's culture, processes, and people. This can reduce the onboarding time and costs.”

Noting these advantages, companies — such as JSW Group and Dalmia Cement -- have retained senior talent beyond retirement in advisory roles.

In April, Seshagiri Rao superannuated from the services of JSW Steel and stepped down from its board as director. Rao, however, continues to be associated with the JSW group as "Group CFO."

Narayan expects the trend for senior advisors to gain momentum as succession plans fructify. “Companies have implemented strong succession frameworks, grooming leaders well ahead of the promoters’ retirement. This is leading to seasoned leaders transitioning to non-executive board positions or advisory roles. The strategic direction is increasingly focused on passing the reins to the next generation,” he said.

In a similar trend, in August, Dalmia Cement said Mahendra Singhi’s tenure as managing director and chief executive officer ends in December, but he will continue as director and strategic advisor to the new MD and CEO, Puneet Dalmia, to ensure a smooth transition.