As a HR director or manager, you are well aware of the difficulties that arise when a company undergoes downsizing or restructuring. Losing employees can be demoralising, not only for the workforce remaining behind but also for customers. This loss can prove costly for your business, especially if it leads to a decline in customer loyalty. However, implementing an outplacement programme can help alleviate some of these negative effects. We will discuss how outplacement support can help retain your customer base.
- Avoid negative publicity
When employees are impacted by redundancy, it can potentially cause negative publicity for the company. This negativity can be amplified if the media picks up the story. Besides, a negative reputation can impact your customer base, and they might choose to do business with a competitor instead. However, an outplacement programme can help reduce or even eliminate negative publicity that could affect your business’s reputation. Outplacement can help former employees transition smoothly by providing them with a plan to re-enter the workforce, which can prevent fallout and mitigate publicity risks.
- Retain valuable customers
Downsizing or restructuring can cause disruption to the customer’s experience, and if not handled well, can negatively impact the quality of service offered. Customers can be lost because the business does not satisfy their needs or met their expectations. However, by offering an outplacement programme, employees feel that the company cares about their well-being, and customers appreciate the humanity in the gesture. This creates a sense of goodwill, which results in lasting customer loyalty. As a company, a sense of community and dedication is also built, and employees become more committed to providing excellent customer service, which strengthens the business’s reputation as a whole.
- Boost employee morale
When employees’ roles are made redundant, it can negatively impact the morale of the employees retained by the company. High turnover rates among the remaining workers can result in them seeking employment elsewhere. However, offering outplacement support can help maintain the morale of employees and increase their loyalty to the company even in times of change. The employees see the company as empathetic to the unfortunate situation, and this works to reinforce their level of dedication to the employer. This dedication translates to better customer service, which becomes a valuable asset to the business in the long term.
- Legal Considerations
Employees impacted by redundancy without providing career transition assistance can lead to legal implications. Government regulations and legislation guide this process where an organisation handles the dismissal of employees. Without the proper legal guidelines, the company might find themselves facing costly tribunal cases with unfair dismissals. However, providing outplacement support avoids these legal ramifications and ensures the dismissed employees transition smoothly to their next potential employer.
- Cost savings
Implementing outplacement support can save the company money. The programme’s cost is significantly smaller than the price of a negative reputation, loss of customers, loss of employee morale and turnover. Outplacement can help increase motivation and productivity among the remaining workers, ensuring the quality of work is not impacted. The savings are substantial and beneficial to the company in the long term.
Conclusion:
In conclusion, offering an outplacement programme can provide your business with an efficient, cost-effective solution to downsizing or restructuring while also protecting your brand and reputation and retaining your customer base. By keeping the morale of your employees high and promoting a seamless transition to their next potential employer; this ensures that the quality of work is still maintained. Employees feel they are taken care of, and customers appreciate the company’s efforts to communicate professionalism and compassion. As an HR director or manager, it is essential to consider outplacement support as one of the solutions to retain your customer base.
Get in touch with INTOO today to see how we can support you with our unique outplacement and career transition services.