Company Restructure on the Horizon? Here’s How Leaders Should Prepare
Company Restructure Scenarios: See Why Outplacement is a Good Business Decision
While going through a company restructure, it’s natural for budgets to tighten. This might make outplacement support seem an unnecessary spend. However an investment in outplacement is a good business decision to help maintain employee engagement, minimize unemployment tax costs and mitigate the risk of legal action. “By offering outplacement support to your exiting employees, your company demonstrates your commitment to your people,” says Bridget Quinn Kadolph, vice president of Client Services at IMPACT Group. “Career transition support for exiting employees sends an important message to your remaining staff. It helps establish trust and protects your brand.”
A lifeline of support for everyone involved – managers, separated employees, and remaining employees – has the power to change the outcome of a difficult situation. Consider these two scenarios:
Scenario #1: When Outplacement Support is Forgotten during a Company Restructure
In the weeks and months that follow the company restructure, office morale takes a significant hit.
Scenario #2: When Outplacement Support is a Priority during a Company Restructure
By using a job search program, Becky lands a new position is just 14 weeks – half the time of the national average.
The Benefits of Outplacement Support
With an outplacement program in place during a company restructure, managers receive training so they properly handle difficult conversations and address low morale. They learn how to support surviving employees so they feel secure and confident with the company. Employees frequently meet with their managers to discuss their concerns, which allows them to be heard and minimizes the rumor mill around the office.
As you can see, outplacement support goes further than supporting separated employees – it saves your company’s brand reputation, minimizes unemployment taxes, and boosts employee morale at the office.
“Losing a job is frightening. Extra support is crucial to ensure the employee gets his/her career back on track and your company moves forward as soon as possible,” says Bridget. “For a small investment upfront, your company can reap ROI benefits from multiple areas, leading to a brighter future for everyone after a company restructure.”
Want to create the best scenario during a difficult restructure? Download our Employee Layoffs Communication Guide to start preparing.
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