Switching to unique EEIDs for each employee tenure (rehires and conversions)
Right now we have Reuse Worker ID and Reuse Former Worker ID enabled in our HCM Tenant settings meaning that when we rehire or convert (FTE to CW or vice versa), the employee ID is re-used. Our Legal team is asking us to re-consider this practice because they do not like the thought of CW and FTE sharing the same EEID as a separation mechanism. Our P&C team doesn't really have a strong opinion other than they need some way to link separate tenures together in a reportable way (which enabling Universal ID would allow us to do.)
Our IT/IAM departments actually like this idea because it aligns better with our provisioning and deprovisioning processes and policies. Each new tenure at our company results in a brand new AD account and email address, everyone starts from scratch. So, our "automated" provisioning and deprovisioning from Workday to Okta/AD has been a bit awkward with rehires and conversions and requires manual interventions every time because they don't want to reuse those same accounts. The Workday/Okta documentation states that enabling universal ID is a pre-req for having true support for conversions and rehires so we get that added benefit.
The main thing that was flagged in our recent meeting was that there are times when we do need other downstream systems/processes to not treat each tenure like a brand new employee. For example, Fidelity integration that creates Fidelity accounts and updates 401k contributions and all that. We would want Fidelity to see that this new "employee" we're sending is actually a rehire and to enable their old account and retrieve their old contribution history and all that. Or for Payroll integrations to ADP.. when a rehire comes back, ideally I think we'd want their old account enabled and so they can see payslips or tax documents from (for example) 6 months ago when they were at the company previously.
All that to say, has anyone made this switch before after Workday implementation? We implemented 5 years ago and we went with this decision to keep EEIDs between tenure but no one here today was there when that decision was made and really understands the why. What's the best practice in general or is it per company? If you've made the switch at your company, what are some things we need to consider?
Thank you!