In today's ever-changing world of work, transformations and reorganizations are becoming more commonplace, with organizations seeking greater advantages in an increasingly competitive market. No doubt, the recent effects of globalization, digitization and market fluctuations have necessitated RIFs, layoffs and many restructuring initiatives, creating new growth opportunities and risks across the business landscape.
As any HR leader can tell you, organizational transformations can be challenging to pull off, and many can be plain miserable. In fact, 10% can cause real and lasting damage to the organization and leave retained and departing employees feeling stressed and anxious about the future.
With 75% of employers worldwide struggling to find the talent with the skills they need, employers must ensure successful reorganizations while mitigating the stress and bad feelings of exiting and retained employees. Indeed, poor employee experiences can tarnish employer brands. According to LinkedIn, professionals under 40 are 61% more likely to consider the employer's brand when weighing job opportunities. Therefore, it is critical that organizations maintain a strong value proposition and remain an employer of choice to access in-demand talent.
To successfully navigate layoffs and organizational transformations, employers must remember that employees are customers, too. Like customers, they look for and are influenced by online reviews and messaging. The pervasive use of social media and employer review sites like Glassdoor increases the potential damage to organizations that fail to get reorganizations right.
So, how can organizations protect their brand reputations during layoffs and transformations? A robust talent development strategy and outplacement program are good places to start.
Create a Culture of Talent Development to Retain and Develop the Right People
Research shows that supporting employees' talent development is the top driver of retention and employee satisfaction. Still, many companies continue to rely on antiquated practices like "one and done" annual performance reviews to manage performance. To ensure high retention and promote a winning employer value proposition-particularly during transformations and in today's fluctuating job market-leaders must commit to providing talent development support across the business.
A common misconception is that the only solution for internal talent development is a promotion to a higher-level role. Promotion is not always possible, but a move to a different department, more exposure to senior leadership and/or an opportunity to work on different projects often are. This is why we no longer talk about the career ladder. Instead, Right Management's experts encourage a career lattice: a more flexible model of talent development that shows employees how they can move laterally, vertically and/or diagonally within the organization to expand the knowledge and skills needed for future roles.
This lattice talent development model has many benefits for organizations undergoing a restructuring. First, it can help organizations keep top performers by providing new opportunities for career growth. Second, it can reduce talent costs while upskilling and realigning talent toward new organizational priorities. Lastly, the approach improves employer brands, enhancing the organization's reputation for being committed to its employees. Overall, a lattice strategy can help create more resilient organizations that are ready for the future while also cultivating positive impressions necessary for attracting in-demand talent.
Offer a Supportive Outplacement Program for Departing Employees
Layoffs and RIFs during a reorganization are rarely good for brand reputations. However, organizations can mitigate risks to their employer brand by offering an outplacement program to exiting employees.
Offering outplacement to former employees means that they obtain critical assistance in identifying and preparing for their next career move. Offerings often include one-on-one career coaching, resumé help, interview training, social media branding, job search guidance and much more. Such services ensure supportive care while helping transitioning employees land faster, thereby mitigating stress, financial troubles and the psychological trauma of job loss.
By providing a compassionate and proven helping hand, outplacement has the potential to transform how outgoing employees see their former organizations. Organizations across the globe agree on the important role of outplacement during restructurings, layoffs and RIFs. In fact, 85% of respondents relate that outplacement is crucial to maintaining positive relationships between themselves and departing employees, and 82% say it is central to protecting the company's brand in times of change and economic uncertainty.
By seeing employees as customers and supporting them at every stage of their careers, organizations can create a positive employee experience throughout their career journeys. This way, organizations protect their brands during transformations and retain their status as employers of choice.
Sign up for our five-part email course, "Real Lives, Real Transitions," to learn how to protect your organization's brand with a human-centered outplacement approach.
