Boomerang Hiring:
Why Re-Hiring Is Trending
Hiring someone who used to work for your company might not be the first strategy that comes to mind, but it’s one more and more organizations are embracing. These “boomerang employees” left for one reason or another—career growth, new experiences, or life changes—and are now interested in coming back. And in many cases, welcoming them back can be a big win for everyone involved.
Why Boomerang Hiring Is Catching On
The numbers speak for themselves. A Workplace Trends survey found that 76% of HR professionals are more open to rehiring former employees than they used to be, and 15% of all new hires are actually returning team members. With today’s job market constantly shifting, keeping the door open to top talent who already know your company is just smart business.
What’s in It for Employers?
- Faster Ramp-Up Time: Boomerang employees already know your systems, your culture, and how things get done. That means less time spent on training and onboarding and more time focused on doing the work.
- Lower Recruiting Costs: Recruiting is expensive. When you bring back someone who already knows the ropes, you save on ads, interviews, and background checks. Plus, you already know they’re a good fit.
- Familiar Faces, Proven Results: You’ve seen their work. You know how they interact with the team. That past performance gives you a lot more confidence than starting from scratch with someone new.
- Good Vibes All Around: When a former employee returns, it sends a message that your company is a great place to work and that people are willing to come back. That can boost morale and strengthen your reputation as an employer.
- New Skills, Fresh Perspective: Many returning employees bring back new insights and skills from their time away. That added experience can make them even more valuable the second time around.
What to Watch Out For
- Higher Pay Expectations: If someone left to level up their skills, they might expect a pay bump when they return. It’s important to balance their new value with internal equity.
- Past Issues Resurfacing: If the employee left because of unresolved conflicts or frustrations, those issues might still be there. Make sure you talk through everything openly before bringing them back.
- Team Reactions: Sometimes current employees feel uneasy or even resentful when a former teammate returns, especially if they’re stepping into a new role or earning more. Transparency and communication are key here.
- Getting Back Up to Speed: If it’s been a while since they left, they may need a refresher on company updates, new tools, or policy changes. A quick, focused re-onboarding process can help.
Making it Work
- Keep the Door Open: Encourage “graceful exits.” Stay in touch through alumni networks, LinkedIn, or casual check-ins. A good goodbye today could turn into a great rehire tomorrow.
- Be Clear About Rehire Policies: Set expectations for who’s eligible to return and what the process looks like. Clear, consistent guidelines avoid confusion or favoritism.
- Streamline the Re-Onboarding: They probably don’t need full onboarding, but make sure they’re brought up to speed on what’s changed since they left.
- Review Their Growth: Take a fresh look at what new experience or skills they’ve picked up and how well they’ll fit into your current team and culture.
Boomerang hiring is more than a trend. It’s a smart, strategic way to bring back proven talent with fresh ideas. As long as you manage the process thoughtfully and keep communication open, it can strengthen your team, improve morale, and give your organization a real competitive edge.
ACA Adjustments for 2026
The IRS has announced 2026 indexing adjustments to the applicable dollar amount used to calculate employer shared responsibility payments under the Affordable Care Act (ACA). Applicable large employers (ALEs) may be liable for an employer shared responsibility penalty under Code § 4980H(a) if they fail to offer minimum essential coverage to 95% of full-time employees (and their dependents, excluding spouses), if the employee receives subsidized coverage through an Exchange. Alternatively, ALEs may be subject to a Code § 4980H(b) penalty if they offer minimum essential coverage to full-time employees (and their dependents, excluding spouses) who receive subsidized coverage through an Exchange, but the offered coverage is not affordable and minimum value. The adjusted penalty amount for failures occurring in the 2026 calendar year will be $3,340 under Code § 4980H(a) per full-time employee (less the 30-employee reduction)—a $440 increase from 2025)—and $5,010 under Code § 4980H(b) per full-time employee that receives subsidized coverage through an Exchange—a $660 increase from 2025.
To avoid ACA employer shared responsibility penalties, employers are advised to regularly ensure full-time employees are identified and offered minimum essential coverage that is minimum value and affordable. As a reminder, the IRS uses Letter 226-J to inform ALEs of their potential liability under Code § 4980H. A response form (Form 14764) is included with Letter 226-J so that an ALE can inform the IRS whether it agrees with the proposed penalty. For proposed assessments issued on or after January 1, 2025, the employer has at least 90 days from the date of Letter 226-J to respond. Employers and their advisors should be prepared to promptly review and respond to this letter, keeping in mind that IRS procedures may change based on court challenges.
The IRS also has announced 2026 indexing adjustments for the ACA affordability percentage. The indexing adjustment is based on projections of premium growth and income growth. For 2025 and several years prior, the premium growth rate was based on per enrollee spending for employer-sponsored insurance. However, HHS revised the measure to also capture increases in individual market premiums, starting with the 2026 benefit year.
The required contribution percentage is used to determine whether employer-sponsored health coverage is “affordable” for purposes of employer shared responsibility under Code § 4980H. The affordability percentage for 2026 will increase to 9.96%, up from 9.02% for 2025.
