HR Topics  Leadership Tips
What is Outplacement? Here’s Your Answer
Changing economy have you wondering what is outplacement? Outplacement services are something you hope you never need. Yet, they become necessary in an uncertain economy that promotes recession fears. Recent headlines don’t look promising:
Eroding Profit Margins Will Push U.S. into Recession in 2020
Global Recession a Serious Danger in 2020, Says UN
Most American CFOs Expect a Recession by the 2020 Election
Layoffs are looming at many organizations. Major shifts like this affect many lives. Here’s a quick overview of what outplacement services entail.
What is Outplacement?
Outplacement is a career transition program provided at no cost to an exiting employee. This support encompasses a variety of services. For instance, these services:
- Assist organizations with making layoff decisions.
- Empower separated employees with finding new employment.
- Support remaining staff members so they stay productive during change.
Services could include consulting, strategic planning, career coaching, job search programs, group workshops, and team trainings.
Why Do Companies Need Outplacement?
Layoffs are even more stressful than recession fears. In addition, there are certain risks and pitfalls. Letting employees go is an act that has repercussions both inside and outside of your company. As you question what is outplacement, you likely question what are career transition services?
What are the Benefits of Career Transition Services?
Reduce the risk of litigation.
An experienced outplacement partner helps you process the criteria you will use to determine who is being let go. Similarly, the partner will also analyze the affect it has on the diversity of your staff. It’s also important to review applicable laws to ensure compliance.
Protect your brand reputation.
Ninety percent (90%) of professionals state they will not work for an organization that has a bad reputation.1 In other words, maintain a positive brand because it allows you to attract the best talent when you enter times of growth. Taking strategic steps along the way will ensure you uphold an employer of choice culture.
Create a clear message to communicate internally and externally.
Determine the rationale behind the layoffs and the business reasons for reducing staff. In other words, it’s essential to put these two things into words so you can accurately and clearly share them. Communicate this to exiting employees, remaining employees, stakeholders, and the public, for instance.
Compassionately support your separated employees with quickly getting back on their feet.
Many professionals are caught off guard when they lose their job. Provide exiting employees with job search assistance through an outplacement partner because it empowers them to find a new position fast. When a former employee cuts their job search in half compared to the national average, your organization drastically reduces your unemployment compensation costs.
Enhance productivity and retention among remaining employees.
Employers paid $600 billion in turnover costs in 2018. They can expect that number to increase to $680 billion by 2020.2 As a result, reducing your voluntary turnover rate by even 1% can deliver significant savings. Proactively address your remaining staff’s questions and needs because this upholds morale and rebuilds confidence in your company’s future.
Clarify changing roles as the company moves forward.
Remaining employees often combat survivor syndrome on top of mounting workloads. Ultimately, this leads to a lot of frustration. To get everyone working toward a common goal, you need a plan that addresses workload changes, manager changes, and team rebuilding. As a result, transparency throughout the process will ensure they buy into the future state.
The headlines about recession fears aren’t likely to get any better. In fact, business optimism has not been this low since September 2016.3 Take time to review your talent strategy so you are prepared for what a possible recession means for your organization. Speak with an outplacement expert to make this trying time more manageable.
1 IMPACT Group Relocation & Job Seeker Survey, 2018
2 National Employee Retention Report, Work Institute
3 Most American CFOs Expect a Recession by the 2020 Election, Markets Insider