A straightforward truth for businesses that have active corporate alumni programs: these initiatives help to build community and have various positive impacts on the work of your Human Resources and People teams. But outside of hiring and other HR- and organization-related areas, what is the value that corporate alumni programs bring for the overall business?
The short answer: a lot. In fact, a lesser-known truth is that although corporate alumni programs certainly bring qualitative terms of building a loyal community of past employees, they also directly impact the bottom line. In this blog, we break down three of the many business areas that a corporate alumni program, when done well, directly impacts.
1. Cut Down on the Cost of New Hires by Half
Hiring talent is difficult and costly — ranging from ‘expensive’ to ‘super expensive’ depending on the source. According to Recruiterbox, “the total cost of hiring one new employee could be as high as $5,000 or more.” And Zane Benefits calculates the cost to be around 6-9 months of salary for the position you are recruiting for, plus training costs, a number that increases with seniority.
These numbers go down significantly for companies that have actively invested in their corporate alumni programs. Why? For two main reasons. First, the talent that was previously hired and employed at your company likely has a network of professionals of similar experience, be it industry, seniority, or otherwise. Secondly, companies using alumni platforms like Alumni Reach have seen an increase in their Glassdoor ratings by 4-5%. This in and of itself is a powerful metric because the higher the rating, the broader pool of talent you will attract, and the more easily you will convert the talent that is a right fit.
2. Shorten Your Sales Cycles up to 50%
Outside of the HR team, the next team that sees significant benefits from corporate alumni programs is the sales department. Specifically, corporate alumni programs help shorten a company’s average sales cycle by up to 50% for various reasons.
These programs enable companies to garner very impactful insights from their pool of alumni. Companies on Alumni Reach often use the platform for crowdsourcing ideas, which helps generate positive feedback and new product ideas while acting as an indirect marketing campaign for all new products. On top of this, alumni are able to provide invaluable introductions to their network for prospective customers. These types of referrals are easily facilitated through platforms like Alumni Reach, where you can automate rewards programs for the alumni in your network who are generating referrals.
3. Reduce Your Marketing Spend
Last but not least, corporate alumni programs are a great way to build a community that drives company loyalty and increases brand awareness. By giving your alumni a central platform and network, you are putting a powerful tool that equips them with the full resources to transform into official brand ambassadors … right at their fingertips. Companies using Alumni Reach report seeing significant reductions in their marketing spend because their HR team’s active use of the tool helps to strengthen their employer brand, facilitate and enhance CSR programs, and keep their alumni and their wider network abreast of all initiatives that they then proudly share with their connections.
The numbers — and bottom lines — speak for themselves. Corporate alumni programs are not only positive for community building but also for overall business success. More and more companies (98% of Fortune 500 companies!) are unlocking the power of their corporate alumni networks through easy-to-use, engaging platforms like Alumni Reach. Join them today!
Unlock the Power of Your Corporate Alumni Network
Alumni Reach is the comprehensive, easy-to-use platform that corporations leverage to unlock the full potential of their corporate alumni network. Top firms choose and implement AlumniReach to recruit talent, increase brand awareness, and gain valuable market intelligence to build strong connections with customers.
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