The need for outplacement services usually comes during times of change. The benefits of using an outplacement service during these times include minimising disruption and stress, maintaining productivity and and reducing turnover.
What are the business benefits of outplacement for the employer?
- Decreased costs associated with layoffs
- Positive experiences for impacted employees
- Improved productivity and morale among remaining employees
- Protection for your employer and corporate brand
- Attracting and retaining the right talent
How do employers benefit from outplacement?
It might seem counter-intuitive for an organisation looking to decrease costs through a reduction in workforce to invest in outplacement services, but in many ways, the business value can far outweigh the cost. For example, supporting employees through outplacement services can help speed up the job search, reducing costs associated with severance and unemployment taxes, among other expenses.
The absence of outplacement services and other means of supporting exiting employees can lead to unexpected costs for your organisation. If impacted employees have a negative experience, they might share this experience on social media or employee review sites like Glassdoor, which will position your organisation in a bad light and make it more difficult - and costly - to recruit qualified employees down the road.
Layoffs and reductions in force also impact remaining employees and can lead to a decline in employee productivity and engagement. In fact, a study found that layoff ‘survivors’ face a 41% decline in job satisfaction, 36% decline in organisational commitment and a 20% decline in job performance.
How organisations treat employees during downsizing says a lot about a company and its values - and employees increasingly expect this kind of transparency.
Outlined are the key benefits of outplacement and why it’s valuable to both your business and your employees: