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Benefits of Executive Outplacement Services

Benefits of Executive Outplacement Services

Laying off employees is a tough reality no employer wishes to face but which most have to deal with. Layoffs occur when an organisation undergoes restructuring, downsizing, mergers, etc. which can lead to the termination of employees. These times can be very difficult, which is why employers often seek help during the process. This is where Outplacement Services come in to play.

Offering outplacement services to an employee is not only the right thing to do, but it serves various business purposes as well, such as reducing the risk of litigation, saving money on unemployment benefits, and protecting the employer’s brand (to name a few).

Why would a company provide Outplacement Assistance to an Employee?

  • Reducing the pain for laid off employees
  • Protecting the employer’s reputation
  • Boosting the loyalty and morale of the employees left behind
  • Helping the terminated employee land a new job faster
  • Protecting you against legal claims

Layoffs are very unpleasant to witness for employees who remain with the company. These remaining employees could have anxiety about being let go at any moment with no regard to their future career. Using an outplacement service is a safety net for this difficult transition and the employees that remain will see that the company cares about their employees. A company that shows compassion for their employees tends to secure harder working employees and loyalty to the company. Offering outplacement services to laid-off employees is one way to show the remaining employees that they are valued and that the employers have a conscience, which can have a positive impact on company morale, commitment, retention, and productivity.

A company’s brand and image are everything these days and with social and traditional media, increased consumer awareness means everything a company does during a layoff can be publicised in a negative way at the speed of your internet connection. But when a company uses an outplacement service, these layoffs don’t seem as harsh to the public and can help control the narrative.

When the company ensures each terminated employee is being taken care of, it shows that the layoffs were an unfortunate reality to the growth of the business and each employee let go was appreciated. Outplacement helps to see the company in a positive light and can promote a great reputation, demonstrate your company’s commitment to current and former employees.

Most importantly, it actually reduces the cost of downsizing. By investing in outplacement services for affected employees, companies will significantly cut the total costs of a downsizing action by reducing overlooked losses in absenteeism, turnover, and litigation. As companies become more adept at measuring the total costs of their layoff actions, corporate self-interest will increase utilisation of high quality outplacement services.

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