What is a revolving door?
A revolving door is the movement of public employees who leave their jobs to pursue private or other interests. Revolving doors in politics can lead to conflicts of interest for elected government employees.
The revolving door between the public and private sector has two consequences: legislators serving as private consultants to industries they once regulated, and high-level private industry lobbyists receiving government appointments related to their former positions. Increased lobbying efforts raise the chances that former government officials unduly influence the legislation.
Revolving doors in private organizations result in high employee turnover, forcing companies to re-evaluate their organizational culture and employee retention strategies. Businesses use workforce management software to develop contingency plans based on labor demand forecasts and tackle revolving doors.
Types of revolving doors
Two types of revolving doors benefit private organizations and governments: post-public employment and post-private employment.
1. Post-public employment occurs when public employees move into the private sector. This type of revolving door creates conflicts of interest because former public officials or civil servants may unfairly use inside knowledge, government experience, connections, or influence to benefit their new employers.
2. Post-private employment refers to private employees finding jobs in the public sector. Corporate executives appointed to public offices may make biased policy decisions and regulatory changes to benefit their former businesses.
Pro-business biases make revolving doors risky. Many countries have adopted stringent revolving door regulations for senior public servants, political advisors, and top-level employees at state-owned enterprises.
Benefits of a revolving door
Revolving doors benefit private enterprises and governments with a pool of regulatory members and lobbyists aware of business and public policies. This familiarity enables both sectors to create or enforce regulatory policies without hiring outsiders.
Revolving door regulations
Revolving door laws aim to reduce conflicts of interest as high-level individuals move between public and private sectors. States take the following measures to prevent abuse of power.
- Cooling-off or waiting periods are the most common ways to avoid post-public employment conflicts. These restrictions prohibit public office holders from lobbying activities for a specific period. Generally, these terms last between six months and two years. In some states, legislators begin the cooling-off period upon leaving public service; in others, it starts after their elected session ends. Florida will impose the longest cooling-off period, six years, among all states, for both former legislative and executive officials.
- Advice bodies are public authorities that oversee revolving door regulations and advise former public employees during the transition period. Institutions eligible to be advice bodies generally include anti-corruption, ethics, or conflict of interest offices. These bodies require public employees to disclose and discuss future private employment plans.
- Law enforcement mechanisms effectively enforce post-public employment laws. Some rules include former employees reporting on current employment situations, publishing post-public employment cases for public scrutiny, informing future employers of restrictions, and reporting future employment applications to advice bodies.
Revolving door vs. open door
A revolving door refers to a cycle in which an employee doesn’t stay in a position for long. Organizations with revolving door situations struggle to motivate and retain existing employees.
An open-door policy encourages employees to discuss issues, concerns, and complaints with their managers or supervisors. Workplaces with open-door policies encourage transparent feedback and communication within the company.
Sudipto Paul
Sudipto Paul is a Sr. Content Marketing Specialist at G2. With over five years of experience in SaaS content marketing, he creates helpful content that sparks conversations and drives actions. At G2, he writes in-depth IT infrastructure articles on topics like application server, data center management, hyperconverged infrastructure, and vector database. Sudipto received his MBA from Liverpool John Moores University. Connect with him on LinkedIn.
