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Why Engage an Outplacement Service?

The benefits of engaging outplacement services can be directly measured in the following areas:

The Bottom Line: Budgeting for corporate outplacement as part of the separation package makes good business sense. It is as essential as offering some form of severance, and can directly impact the bottom line. It decreases the amount of time the displaced worker obtains unemployment benefits and reduces the potential for lawsuits.

Reputation and Public Image: Corporate outplacement helps promote the company’s image as a good corporate citizen, and decreases the cost of turnover among remaining workers. Providing corporate outplacement demonstrates to the community that the company values its human capital.

Decrease the Potential for Lawsuits: Offering corporate outplacement can diminish the resentment, hurt and anger many laid off workers feel. By offering a structure that is focused on moving onward, workers have less time to fret and vent about the company and its perceived treatment of them.

Maintain Workforce Morale and Productivity of the Remaining Workers: “It could have been me.” Most workers who remain after downsizing have this thought. Once the loyalty contract is broken between employers and workers, the remaining employer’s look to their displaced co-workers to see how they are being treated. Downsizing creates a disruption in business, as workers gossip, theorize and worry about the impact on their lives. Providing a solid corporate outplacement plan can squelch this negative energy and provide reassurance to the remaining staff.

Preserve the Dignity of the Displaced Worker: knowing that the company has provided a free and valuable service to assist the displaced worker become reemployed quickly can help preserve their self-esteem. Armed with the proper tools, displaced workers become motivated to enter a job search campaign with confidence.

Enhance the Ability of the Displaced Worker to Become Employed Quickly: studies have shown that displaced workers find employment quicker, and often even at a higher salary when they have the benefit of career transition services. This is because most displaced workers are critically weak in the skills needed to aggressively look for work. Career transition programs include resume development, interview training, and job search coaching. By offering a corporate outplacement service you are providing the training and support displaced workers need to find new employment.

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