CASE STUDY

The accounting firm Ernst & Young believes that employees who have resigned from the firm are very important to its future success. Many of these people rejoin the firm. In fact, on average, $25$ percent of the firm$$s experienced hires are $$boomerangs$$ who left the company and then returned. The company even has a referral incentive program to reward former employees who send candidates to Ernst & Young.

In addition to maintaining a directory of all of its former employees, Ernst & Young has a Web site dedicated to maintaining relations with them. The Web site contains job postings, news about former employees, and a social events calendar. In addition, the Web site contains information about key industry and business issues, and news pages with updates and firm announcements.

Questions:

$1.$ Do you think that it is a good idea for Ernst & Young to hire previous employees? Why or why not?