Why is outplacement important?

Maintaining the wellbeing of a business may lead to difficult decisions that involve the involuntary termination (commonly known as ‘layoff’) of employees. While reducing redundancy in the workplace and shifting to smaller teams can lower costs, companies should still consider the impact such choices have on their personnel.

Providing an outplacement program for employees helps minimize the repercussions associated with layoffs, while at the same time offering professional guidance to affected staff members.

What are the benefits of outplacement?

Access to valuable resources

Outplacement gives employees access to a substantial number of valuable resources that aid with finding and transitioning into a new position or career. Businesses can connect involuntarily terminated workers with experienced career counselors to improve their job-hunting techniques. The advice provided during the sessions will result in elevated networking skills and help participants develop a stronger personal brand to differentiate them from other jobseekers.

Resume editing and writing

Applicants requiring additional assistance with their resumés can benefit from the resumé editing and review services offered by outplacement programs. Working with experienced reviewers will ensure employee submissions pass through the applicant tracking systems used by companies. The reviewers even offer hands-on suggestions for potential improvements to the resumé that will distinguish the applicant from competing candidates. Assistance on building a cover letter is also available for job searchers.

One-on-one coaching, seven days a week

One-on-one coaching sessions (sometimes known as counseling sessions) from career development experts are offered through the program to guide employees towards appropriate positions for their skills and preferences. Those who wish to transfer into new careers that require further education will be shown how to gain the necessary training for their desired job. If the worker is uncertain about which career path to follow, counselors can use assessment and personality tests to get a feel for their next steps.

Help finding new/available jobs

Employees can also find assistance with locating new roles through outplacement programs. For example, INTOO’s job search engine tool provides matches to jobseekers’ skills and interests and includes detailed information on companies looking for new talent. The tool is combined with a feature that uses LinkedIn to reveal any personal connections shared by the prospective employer and the jobseeker. Having access to a convenient search engine will help terminated workers discover new career opportunities at a faster rate than if they were to do so independently.

Reputation management

Outplacement services are beneficial to businesses looking to improve their reputation or maintain a positive image as an employer. Layoffs hold a negative connotation and may cause significant damage to an applicant’s perception of a brand when inappropriately handled. Businesses that don’t offer outplacement may risk alienating future applicants as a consequence of gaining a poor reputation.

Offering guidance to those impacted by the reduction of staff will demonstrate the appreciation and respect a company has for its workers. This in turn can reassure jobseekers that the organization is an employer worth considering. Employees are also less likely to criticize the business on review sites, such as Glassdoor, if you offer them assistance in finding a new opportunity more quickly.

An organization’s workplace culture can be negatively influenced by layoffs, so it is important for employers to soften the experience of all parties involved. The staff who were not let go by the business will still feel the ramifications of the decision and may have doubts about the reliability of their employer. Outplacement programs build trust between a business and its remaining personnel by respecting those who lost their positions. Companies that act in an ethical manner can strengthen employee bonds with the brand, which promotes a healthy workplace environment.

Why offer outplacement?

Offering outplacement services to personnel can play a prominent role in maintaining brand loyalty among consumers. Laying off a worker without providing access to support programs may cause customers to question the morals of a company, which can damage the company’s reputation.

We conducted an Employer Branding Study that found 66% of terminated employees share their experiences with others. Negative testimonials from disgruntled workers, shared on social media sites and job boards, will contribute towards creating an undesirable public image.

Our Employer Branding Study also found that 64% of shoppers stopped supporting a business after hearing news about poor employee treatment. With almost two thirds of a brand’s current supporters having a significant impact on its profitability and market share, this could be an alarming percentage. But outplacement can help defend companies against accusations of being unfair during layoffs by giving assistance to affected personnel. Helping terminated team members is a form of corporate social responsibility that can reinforce a positive, empathetic image for the brand.

Having an excellent reputation may result in reduced expenses for recruiting new employees. According to the Harvard Business Review, the per-hire costs of an organization with an unfavorable reputation are $4,723 higher. Leaving good impressions on previous staff members may turn them into “boomerang” employees, returning to the organization some time after leaving, which helps companies avoid costs associated with new hires failing in their positions and with extensive onboarding.

Paying for outplacement can also lead to long-term savings by reducing the possibility of litigation. A study from Inc. showed how one in five small and mid-sized businesses will encounter employment lawsuits. The same study reported that employers pay an average of $125,000 to defend themselves. Including outplacement services in employee severance packages can help companies mitigate these types of expenses and negative publicity.

The emotional impact of a layoff leaves an impression on the co-workers still employed at a company, especially on those who established amicable relationships with the terminated employees. Businesses that offer no support to workers affected by the layoff may be criticized by the remaining staff for being uncaring and irresponsible, resulting in a negative company morale. A lack of loyalty to the brand can lead to consequences such as decreased productivity and a higher turnover rate.

Outplacement helps improve company cultures by reassuring employees that their long-term wellbeing matters to the corporation. Businesses with a positive culture in the workplace will benefit from increases in crew morale, work performance, and job satisfaction. Maintaining a favorable environment within the company will also strengthen its outward reputation, which may result in additional customer support of the brand.

Incorporating outplacement programs into an organization is an ethical investment that will give laid-off individuals the crucial resources they need for transitioning to a different position. Companies should consider making use of outplacement services to improve the wellbeing of their workforce.

Learn how to help your employees through workforce transition