MUNCIE, Ind. -- Rehiring a former employee to fill a vacant management position, erodes productivity, says a Ball State University expert.

Current employees will be dismayed to be passed over for someone who jumped ship, said Brien Smith, a management professor who specializes in human resources.

"A person in the military who joins the other side is called a traitor," Smith said. "In the business world, that may be too strong, but employees will be hurt. They perceive it as a bad message."

They don't mind if Bob or Sue returns to become their co-worker again. However, when that person returns as their superior, they feel the company has betrayed their trust and loyalty, he said.

Smith believes the rehiring of former employees to fill management vacancies occurs too often because many firms fail to develop in-house advancement programs.

Promoting from within is a good way to boost morale and productivity. Employees work hard knowing that someday they will rise on a company's management ladder, he said.

"People say that company loyalty has died and I agree with that to a point," Smith said. "In my opinion, companies are no longer treating their employees as family. They are failing to provide professional development programs to tap into a wealth of in-house talent.

"It is difficult, costly and time-consuming to bring along and develop good people," he said. "However, in the long run it pays off. When you promote from within, you don't have people jumping ship. We have this trend of people going from one firm to another, seeking advancement in rank and pay."

Smith advises companies of all sizes to create advancement programs to stem the tide of employee "hopping." Such programs may also keep current employees out of the job market filled with high paying jobs.

Hiring a person to fill a position costs nearly twice that individual's salary due to training costs and productivity losses, he said.