5 Ways Outplacement Solutions Can Ease Your Company Layoff

HR manager speaking with a former employee about outplacement services being provided after a layoff.

Posted on

January 10, 2020


The start of a new decade is often a time for reflection, reassessment, and redirection. This is true for individuals as well as organizations, which have to continuously pivot and innovate to remain competitive in a business environment impacted by automation, economic changes, and global competition. Unfortunately, layoffs are sometimes necessary as an important part of this change process.

Layoffs, when mishandled, can be very disruptive. The employees who are laid off may experience financial stresses or difficulties finding a new position—and blame your organization for their challenges. While no layoff process is stress-free, outplacement solutions can help companies mitigate many of the negative impacts. This is why many companies today provide outplacement services—also known as career transition support—to their existing employees to help them find new jobs more quickly and easily.

Here are five ways outplacement solutions can ease the impact of layoffs for your company.


1. Outplacement solutions help protect your employer brand.

Many people leave Glassdoor reviews when they leave a company; even more share their opinions about their employers on social media as they depart. This makes layoffs a very delicate time for your organization’s brand reputation. According to Intoo’s Employer Branding Study, 66% of people choose to share their poor layoff experiences with others. It is thus essential to make the exit process as smooth and supportive as possible for impacted employees.

By giving outgoing employees help with their job search, your organization demonstrates that it cares about its workforce. Former employees are likely to appreciate this support, and see your company as doing its best during challenging times for the organization.


2. Outplacement solutions help retain your customer base.

Letting go of employees can affect your customer base in unexpected ways. The outside contacts, both personal and professional, those impacted employees have may develop a less positive opinion of your organization if your outgoing employees report they have been treated unfairly or uncaringly.

According to Intoo’s Employer Branding Study, 64% of consumers stop purchasing a brand after hearing news of that company’s poor employee treatment. To forestall such negative word of mouth, your company can offer outplacement assistance to show your customer base that your company cares about its people.


3. Outplacement solutions help lower the risk of employee lawsuits.

Layoffs can sometimes trigger affected employees to sue their former employers. Providing outplacement lowers this risk of lawsuits. Beyond letting the exiting workers know their company still supports them, outplacement services help people focus on their next career step, instead of ruminating over the lost job of the past. As Michael J. Canavan, an attorney at Pepper Hamilton, told Entrepreneur, offering outplacement lessens “the likelihood that a terminated employee will have issues against you that they’ll want to turn into litigation.”


4. Outplacement solutions help preserve a positive company culture.

Terminated workers are not the only employees affected by a layoff. Employees who remain also feel its impacts. In addition to taking on more or different duties, retained employees can experience a breach in company trust, anxieties about their professional futures, and lowered morale. In fact, Harvard Business Review notes that retained employees experience a 20% decline in job performance after layoffs.

Retained employees are more likely to retain their trust with your organization and feel more secure if they see their former coworkers are offered outplacement assistance on their way out. By observing the kind way their ex-colleagues are treated even when leaving the company, your remaining employees will see that the organization they work for is a caring one worthy of their loyalty.


5. Outplacement solutions help attract key talent.

Finding great talent is a challenge in today’s competitive environment. To attract the best employees, your organization must have a strong employer brand with a positive culture that candidates are drawn to.

Because outplacement helps protect employer brand during layoffs, it also helps your organization with recruiting. Moreover, providing outplacement services can help bring back boomerang employees. As Fast Company points out, outplacement helps with “maintaining positive relationships with displaced workers.” Those positive relationships can lead to the happy return of productive employees you were not able to retain during a layoff.

Of course, the level of benefit your organization experiences by offering outplacement solutions will depend on the quality of the outplacement program you provide. To derive the maximum benefit, it is important to select outplacement solutions that are convenient to access, easy to use, and effective at helping laid-off employees find the types of jobs they seek.

INTOO’s outplacement solution assists employees affected by a layoff, helping them land new jobs 2.5x faster than the national average. We offer one-on-one, on-demand coaching from premier career counselors, detailed resume reviews, and a suite of career services, all on a convenient online platform. Learn more about how our outplacement program can benefit your company during a layoff.


INTOO Staff Writer

INTOO staff writers come from diverse backgrounds and have extensive experience writing about topics that matter to the HR and business communities, including outplacement, layoffs, career development, internal mobility, candidate experience, succession planning, talent acquisition, and more.

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