Outplacement services help employees land on their feet when companies must make difficult decisions about personnel. But investing in outplacement can provide big benefits for the company as well. While it’s great for companies to be good corporate citizens and care for their people, they must also be accountable to their stockholders and bottom line. Investing in good outplacement services allows savvy companies to benefit in both areas.
what are outplacement services?
Companies hire outplacement consulting firms to help their employees transition to a new job outside the company. This could be from layoffs, a reorganization, a merger/acquisition or an individual termination. The outplacement firm uses its expertise in the field of career change to consult with the former employees of the company. The company ending the relationship with the employee is the one paying for the services.
How does outplacement benefit the company?
It seems strange on the surface for a company to pay money to a firm to help a former employee find a job somewhere else. The payoff for the company is both in the immediate and long term. Below are several of the benefits companies derive from outplacement.
reduction in workforce disruption
There are many emotions involved during the separation conversation for both the employee and the company. The employee is losing his/her job which disrupts their feeling of security and self worth. The person delivering the unhappy news often struggles with their own emotions as this was one of their team members. These powerful emotions can cause eruptions and disrupt the working environment. Employers who demonstrate they truly care about their people and their ability to provide for themselves even after a separation greatly reduce these disruptions.
Lessens the chances of litigation
All companies want to avoid lawsuits from disgruntled former employees. The human resources department conducts numerous trainings every year on a variety of topics for this very reason. Even when the lawsuit has no merit the process still chews up time, money and emotional energy. Additionally, it becomes part of the public record. The small investment made in quality outplacement services can generate big returns quickly by avoiding these costly legal proceedings.
Protect the brand on social media and job sites
Disgruntled employees cause tremendous damage to company brands every day. Any individual has the power at their fingertips to reach an audience of at least several thousand people with one simple posting. This can lead to lost clients and revenues as well as lost future employees. Sites like Glassdoor allow applicants, employees and former employees to tell the world what it’s really like to work for the company. Companies might lose out on many talented prospective employees who made their decision based on reading such a review.
maintain client relationships
Many employees with client facing roles develop strong relationships with the clients of the company. Those relationships often persist even after the employee leaves the company. Countless client relationships unravel for companies when former employees share what they really think of their previous employer. Smart companies realize that the investment in outplacement services can help keep their loyal clients in the fold.
build trust with remaining employees
It’s never easy to go through a separation with an employee whether it’s a reorganization, a downsizing or even a termination. These are human beings with families. The remaining employees are close friends and akin to family in many ways with the employee who is leaving. Every employee who sees a co-worker exit the building with their belongings in a cardboard box immediately thinks about the potential for that happening to them. Companies that make the investment in outplacement services demonstrate to the rest of their team that the company cares for its people. Many studies show companies that use outplacement services have much higher productivity from their team over the next several months versus the companies that don’t.
We’re all in the raft together. The choppy water of the economy swirls and churns around us and it’s difficult to see what’s ahead down river. Sometimes the bumpy ride throws people in the raft overboard. Outplacement services are the life vest and rescue team trailing behind the raft.
If you’re an employer planning to reduce your current workforce Endeavor Agency can help. Contact Endeavor today to learn more about our outplacement services. The you of tomorrow will thank the you of today for taking the right steps now.
About Endeavor Agency, Inc.
Endeavor Agency is the nation’s leading career agency for executives. Endeavor helps executives, physicians, and professionals find jobs. Our team prepares clients for interviews and our clients win job offers far more often. Endeavor helps clients negotiate better offers and employment contracts.