Four reasons why organisations should offer outplacement
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What is outplacement and why you as an employer should offer it?
Outplacement is a service paid for the employer and offered to employees whose role has been made redundant, to help them quickly transition to the next stage of their career. This may include landing a similar role in the same industry or retraining for a whole new job.
Some people who have been laid off, use this time and the support that outplacement offers to evaluate their career and their personal goals which can take their next career steps in many different directions.
From starting a business to varied jobs linked to individual interests or retirement, outplacement services offers people the time, support and guidance to explore all options.
Here are four reasons why you should consider offering outplacement to your employees
Improved employee morale, motivation, and productivity
A key feature of outplacement and career transition is that it provides those affected by redundancy with the support and guidance they need to quickly move on in their career, those with outplacement support find a job 65% faster than those without any help.
It can also provide valuable help to those employees who remain in the organisation and who can be deeply affected by layoffs. It is not uncommon for remaining employees to experience a range of emotions as the redundancy process is conducted, ranging from feelings of insecurity, anxiety and demotivation.
Seeing friends and colleagues being let go without adequate support, coupled with fear that “they could be next,” can tarnish their opinion of the organisation while eroding productivity and engagement. Career Transition partners have solutions to help the “survivors” maintain their focus in the wake of layoffs.
Brand and reputation protection
Social media allows people to share their views to thousands in a matter of seconds. Negative experiences relayed to the masses can quickly damage the employer and customer brand.
This is true regardless of whether the organisation involved is a huge multinational, or a middle-market entity and there have been many high profile examples where organisations have managed the process poorly, which has quickly gone viral. However, for the same reasons, positive experiences and opinions can also be shared at lightning speed with huge reach.
Providing support to employees going through a career transition, and those left behind, can help protect and even enhance an organisation’s brand and reputation.
Outplacement is a great opportunity to engage reskilling
Tech and AI advances are having a big impact on the type of jobs needed in the future. By 2027 it is estimated that globally 83m existing jobs will be eliminated and 69m new job opportunities will be created.
Outplacement programmes are increasingly being used by those affected by redundancy to reskill and retrain to take advantage of the new career opportunities being created. Providers such as LHH provides people with the resources and training tools to help them reskill and give them the confidence to explore new career options.
Reduction in legal costs
The legal costs of a badly managed redundancy can often run into thousands of pounds per case. That alone makes for a compelling business case to offer career transition support. Research shows that employers invest in outplacement support specifically to reduce the likelihood of litigation.
The cost of outplacement support normally represents a fraction of the overall cost of a severance package, it is arguably the only part that offers a real return on investment.
Badly managed redundancies can hurt everyone – the people being let go, the organisation and the people who are left behind. When there is no other alternative other than redundancy, then it makes good business sense to get help from an experienced career transition partner.
The costs of not engaging that help in terms of reputation, a fall in employee morale and productivity can have far reaching consequences.