Transitions are an inevitable part of business operations, whether due to restructuring, downsizing or changes in market dynamics. But that doesn't make them any easier for outgoing employees, retained staff and organizations seeking to manage transitions effectively.
For individuals across the organization, layoffs and RIFs have profound impacts. Ranked in the top 10 of most stressful life events, layoffs dramatically increase the likelihood of developing a health condition within the first 15 to 18 months of being let go. It's no wonder that experts say psychological recovery from job loss could take up to two years.
Retained workers, too, face hardships during reorganizations and transformations. Layoffs and RIFs can lead to declining morale, placing retention, employer reputation and productivity at risk. One study found that a layoff affecting just 1% of the workforce led to a 31% increase in voluntary turnover.
No doubt, organizations face a challenging task when managing employee exits, especially with productivity, profits, employer brands and individuals' well-being on the line. Amidst these transitions, outplacement emerges as a necessary offering, ensuring organizations navigate these critical moments compassionately and strategically. This proactive approach not only supports departing staff but also yields significant benefits for organizations themselves.
What is Outplacement, and How Does It Benefit Exiting Employees?
Outplacement is a benefit the former employer provides to exiting employees during layoffs. To enhance confidence and support former employees through career transitions, high-quality outplacement programs offer a complete suite of valuable tools and resources. Typically, these include one-on-one career coaching sessions, cutting-edge technology, resumé assistance, social media branding, interview training, job search guidance and much more.
The employer offers outplacement programs at no cost as an optional part of the offboarding process. When exiting employees choose these programs, they can gain compassionate, smoother, faster career transitions. Quicker, easier and supportive transitions mitigate the negative impacts of job loss, thereby boosting well-being and career success for those leaving organizations.
The Benefits of an Outplacement Program for Organizations
In doing good for exiting employees, organizations gain a host of benefits that will improve their position in the market. Outplacement programs preserve organizational reputations, lessen productivity losses, mitigate retention concerns, boost morale, enhance employee loyalty, reduce risks, improve employer branding and lower costs.
One of the foremost benefits of offering outplacement programs is preserving an organization's reputation as a responsible employer. By assisting employees in their career transitions, organizations demonstrate a commitment to their workforce beyond mere employment. This commitment resonates positively with current and former employees, reinforcing the organization's reputation as a caring employer. Such efforts go a long way towards maintaining morale, trust, loyalty, and, by extension, high productivity and retention rates among retained staff. These workers witness firsthand the organization's dedication (or lack thereof) in supporting its people. Showing care to departing employees reassures retained staff of the organization's commitment to employee well-being and future careers, mitigating retention issues.
Preserving the organization's reputation can also improve its employer brand. In today's competitive talent market, employer branding is crucial in attracting top candidates. Organizations known for taking care of their employees throughout their entire career cycle-including during exits-stand out as employers of choice. Potential hires are more likely to be attracted to organizations prioritizing employee support and well-being, viewing them as stable and responsible employers committed to their workforce's success.
In addition, investing in outplacement programs can reduce potential legal risks and costs associated with employee terminations. When employees are provided with support to find new job opportunities, they are less likely to resort to legal avenues out of frustration or desperation. This proactive approach helps manage the departure process, reducing the likelihood of litigation or disputes that could harm the company's finances and reputation.
Lastly, outplacement programs can contribute to more efficient workforce management and lower costs. By helping departing employees transition into new roles more swiftly, companies reduce the financial and operational impacts typically associated with prolonged unemployment or dissatisfaction among former staff. This efficiency not only saves costs but also allows the organization to reallocate resources more effectively toward its strategic goals.
Overall, implementing an outplacement program represents a strategic investment for companies looking to navigate employee transitions with compassion and foresight. Beyond fulfilling legal obligations, outplacement maintains competitiveness, ensuring organizations and individuals thrive in a tough market. By prioritizing the well-being of all staff, including exiting employees, organizations demonstrate their commitment to responsible business practices and strengthen their position as employers of choice. Ultimately, the benefits of outplacement services extend far beyond the departing employees; they contribute to a more resilient and respected organization poised for sustained success.
Sign up for our five-part email course, "Real Lives, Real Transitions," to learn how to take a human-centered approach to leading your organization through a reduction in force with outplacement.
