The benefits of an outplacement service

Letting valued employees go is always going to be fraught with difficulties. It’s a stressful time for all staff within an organisation, not just those who are departing. Emotions are all over the place, stress levels soar, and an uncertain future can undermine those employees who are remaining. That’s why it’s so important to provide the best type of outplacement support to the displaced workforce in order to give them a fighting chance for a brighter future. If companies plan to keep some employees, protect their brand, and keep the business afloat, it’s crucial, now more than ever, to follow proper redundancy procedures.

In this article, we’ll go over the benefits of outplacement for your business, how to provide a high level of support to outgoing workers and prove to surviving employees that they’ll be taken care of as well, should they be made redundant further down the line.

There are always two sides to everything, so as well as showing the benefits of outplacement, we’ll also dig a bit deeper into some of the disadvantages of procuring outplacement services and what to look out for when deciding which is the right outplacement provider for you and your company.

What is outplacement?

Before discovering the many benefits of outplacement, let’s review what outplacement actually is. Outplacement is a service that smoothes the redundancy process, for the company and departing members of staff, by providing off-boarding support to staff in the form of career coaching, CV writing, networking, job retraining, and interview preparation. Modern outplacement firms provide flexible and global services, enabling workers to secure a new, and often better, role quicker than going it alone, by using cutting-edge career transition technology and virtual learning centres.

The role of outplacement in business

It’s recommended that you have an outplacement provider by your side during a workforce streamlining process. That’s because a damaged reputation, formed by not tackling this sensitive period properly, can have a knock-on effect that lasts a long time. It’s best to protect your brand by bringing an outplacement provider on board when you’re having to shed jobs, even if it’s for one-offs or small-scale reductions in the workforce.

Being laid off is one of the most stressful things that can happen to a person, so it’s wise to support those staff members during these times. The outplacement process provides a simple pathway for workers to follow where they can transition from their old role to a new one in a less stressful manner, while potentially saving their employer costly damage to the company’s reputation, retention, and productivity. 

Redundancies are multi-faceted events, so organisations should follow the proper procedures throughout. Outplacement comes towards the end of the process, when HR offers these services to employees being let go, to help them find new and meaningful roles. When done right, there are many benefits of outplacement for those employees, as well as for employers.

7 benefits of outplacement for employers

Now that we understand what outplacement is, and the service it provides for departing staff, let’s look at the benefits of outplacement services for employers. While business benefits are incredibly important, it’s worth remembering that it’s the employees who should be at the forefront of the mind of employers when going down the outplacement provider route. With that in mind, check out the further benefits of outplacement for employees further down the article.

For now, let’s look at what advantages outplacement provides to employers, and how it can improve a company’s overall performance and brand. Choosing outplacement as a service shows you still care about your employees and how they fare, even after they’ve left the company. It really is one of the best things a business can offer staff members during redundancies… well… that… and a decent leaving present! While a strong redundancy package is great, providing outplacement services on top is a sure-fire way of completing the deal which will allow employees to thrive.

1. Reducing stress

We all know that losing your job is stressful. It just is, and there’s not a lot you can do about that. Or is there? For the workforce who are remaining, seeing their colleagues get the boot is not pleasant. The HR department has to notify those being made redundant, and then go through the whole redundancy process, while keeping retained employees as stable as possible.

But if the company has outplacement services in place, the HR department can handle the whole ordeal knowing that departing members of staff will be taken care of by a team of outplacement experts and coaches, supporting them all the way to their next role.

The benefits of outplacement services are not lost on surviving employees either, who will probably feel nervous when redundancies are imminent. This can trigger a wave of people jumping ship as they come to the conclusion that their jobs aren’t safe anymore. The good thing about outplacement is that it can ease this tension by showing surviving staff that they’ll be treated well should they ever get the chop.

2. Protecting your reputation and brand

Streamlining the workforce is a fact of life in business. Even so, every time it will put your organisation in the spotlight and up for public scrutiny. And that’s how it should be. When redundancies occur, no matter how big or how small, people’s lives are turned upside down. While redundancies are often a necessity for a business to move forward, that fact is normally lost in the wider world. That’s why, when it comes to redundancies, HR should lessen the impact and take precautions to ensure the process goes as smoothly as possible, without outgoing employees becoming resentful. 

One way to do this is to offer a redundancy package that includes an outplacement service. By providing this, you’re letting employees know that you still want the best for them, even if they are losing their jobs. You’re also proving to surviving employees that they would be in good hands, if it happens to them. This is one of the clear benefits of outplacement services, showing the world, your employees, and the rest of your staff that you don’t just abandon departing employees as soon as they are out the door. This will go a long way to help protect your company’s reputation, both internally and externally. 

The same will go for your brand. Nowadays, word of mouth, either recommendations or complaints, is amplified by the internet. Employer review sites, such as Glassdoor, make it easy for staff to leave negative reviews about places they’ve worked in. This can be catastrophic for a company. With redundancies almost always being viewed negatively, often due to poorly executed events, this can be of huge detriment to a company’s brand. 

On a positive note, excellent off-boarding practices, such as outplacement, can protect against the tarnishing of a brand. That’s because it demonstrates a corporate responsibility towards current and former employees, while showcasing a commitment to providing solutions that professionals require, which in turn reinforces a positive view of the company by the staff and the community as a whole.

It’s why Careerminds clients score 16.5% higher on Glassdoor reviews. 

3. Boosting staff morale

Reducing the workforce can decrease the morale of remaining members of staff. If dealt with in the right way though, the process can actually enhance their motivation and dedication.

By offering outplacement services to employees being made redundant, it shows those who are staying that they’re working for a company that cares about their staff. They have something to fall back on should they ever get laid off. This can have a positive impact on morale, commitment, retention, and productivity. By establishing a precedent for taking care of your staff, your company becomes a place where people want to work. 

4. Maintaining productivity and retaining staff

Similarly, this boost to morale and motivation, due to providing outplacement services, can have a positive impact on the productivity and retention of remaining employees. When staff feel valued and supported, they’re more likely to work harder and feel invested in the success of the organisation.

Because of this, it will be easier to retain top talent and help them maintain – or even improve – productivity levels. Productive staff improve efficiency, reduce redundancy, and help the business reach its goals more efficiently and effectively. This means your organisation will be better equipped to survive the redundancy event and continue to flourish.

5. Supporting company values

Beyond a company’s brand, outplacement protects company values, reinforcing them with both departing and remaining staff. Most companies have core values that illustrate how invaluable staff are to the business. There is certainly a connection between value-driven organisations and increased long-term productivity. By providing outplacement packages, you’re demonstrating that the company’s core values aren’t just words on a page, but actually mean something.

6. Mitigating the risk of legal action

If a worker is let go, they might feel aggrieved and decide to sue the company. Whether these grievances are perceived or real, having to defend an unlawful termination is time consuming, expensive, and damaging to staff morale. It can also injure and damage the company’s reputation and standing.

One of the benefits of outplacement services is that they help protect the employer from these risks, as outplacement can reduce the anxiety of laid-off employees, sustain healthy relationships in the office, and, in turn, mitigate the risk of wrongful termination lawsuits.

7. Saving costs

The likelihood is that a company will have to shed employees at some point, so it’s vital to employ an outplacement firm as a strong strategic partner, one who can guide you through the redundancy process with minimal cost and stress. Ignoring the need to lay off staff can be the downfall of your business, and you certainly don’t want that to happen. Outplacement helps outgoing employees find a new role sooner, which reduces unemployment costs.

Including outplacement as part of a redundancy package can serve as a bargaining chip during compensation negotiation, by offering terminated employees tangible unemployment benefits that are cheaper than other redundancy options. By hiring a modern, tech-driven outplacement partner, who offers unlimited virtual outplacement support, your employees will be better equipped to find new, meaningful work sooner, which saves you and them money. 

Outplacement means you can do what’s necessary to ensure your business remains profitable, while offering current employees proper benefits.

4 benefits of outplacement for employees

Now that you understand what the benefits of outplacement are for a business and an employer, let’s look at the benefits of outplacement for employees – those most affected by the change in circumstance. There are 4 main key benefits that outplacement provides to impacted employees which can mean it’s a sensible choice for employers.

1. Finding a job quicker

When there are redundancies afoot, the most important benefit of outplacement services is to get the departing employees back into work as fast as possible. On average, it takes around four months (122 days) to find a new role in the UK. But that’s for those job seekers who don’t have the benefits of outplacement service to help and support them.

Outplacement services offer such detailed guidance that participants tend to find new openings in a considerably shorter amount of time. At Careerminds, each participant receives bespoke coaching services and job search support that sets them on the right road to success. This all results in participants with Careerminds landing new positions in just 11.5 weeks (80 days), along with an impressive 95% placement rate.

2. Reducing negative feelings

It’s inevitable that redundancies are going to trigger a whole array of emotions for those who are being let go. These impacted employees may feel sad, uncertain, angry, even relief, as well as a range of other emotions mixed in. They may feel the urge to express these feelings online or by word of mouth. Even those members of staff who are staying will feel the impact of those redundancies, worrying if they’ll be next, or concerned about how their impacted colleagues will fare during their career transition. 

By offering comprehensive outplacement services to impacted employees, you can help to stem the tide of negative emotions across the whole of the organisation. It shows the company holds the departing employees in high regard, even if they are having to leave prematurely.

3. Feeling supported

Let’s be real here. Even workers at top companies get made redundant. But when an organisation introduces outplacement services as a core benefit, it creates an employee-centric culture that makes staff feel secure, valued, and motivated. They often realise that it’s circumstances beyond the control of the company that is forcing them to shed jobs. This level of care and support doesn’t go unnoticed. 

With outplacement services, employees will feel that emotional support, knowing their employer cares about their future and will continue to support them even after they’ve left. They’ll also feel supported financially as the outplacement service will help them find new employment quickly, while a healthy redundancy package will see them through the times when they are between jobs. 

4. Receiving customised help

There’s no point in having a one-size-fits-all approach where outplacement services are concerned. Reputable outplacement firms will only offer personalised services that are based on the participant’s level and job title. The strategy applied to executive participants will differ greatly from the job search for an employee at entry level, for example.

Overall, the benefits of outplacement are worth the cost. It’s tough enough for outgoing employees facing a job loss. But those companies that offer outplacement support, as part of their core value and social responsibility, will empower former employees during their search for new and meaningful roles, while helping to ensure that the redundancies don’t cause friction for either party.

Outplacement firms, such as Careerminds, extend a company’s support further, working in tandem to help impacted employees through a career transition with high quality services that have invaluable benefits for both employees and the company.

The disadvantages of outplacement

There are always two sides to a coin, so with benefits come disadvantages – though you’ll see that the benefits outweigh the disadvantages of outplacement every time! While these two disadvantages aren’t true with every outplacement service provider, it’s worth having the heads up on them so you can make your own judgement when you come to decide whether or not to go ahead.

1. Unnecessary costs

The most common disadvantage of outplacement services is incurring excessive or unnecessarily high costs if you choose poorly. Traditional outplacement firms often charge retainer fees, or put restrictions on services such as time limits, cutting off the support when the departing employee needs it most. Contemporary, tech-savvy outplacement firms, like Careerminds, don’t do that. We never charge retainer fees or limit use for participants. In fact, we’re proud to say that we’re the only outplacement firm that offers unlimited support to participating employees until placement, which means until they find new and meaningful work. That’s because we believe that displaced employees who’ve had their worlds turned upside down should receive all the support they need until they cross the finish line. 

Be sure to keep an eye out for any unnecessary costs that may start to outweigh the benefits of outplacement services.

2. Competitors hiring former talent

While redundancies might help a company balance the books in the short term, it’s almost never good for the overall UK economy. Small and large businesses pray for a healthy economy as that’s the best climate in which to do business. 

When you employ a service that ensures people get back into work more efficiently, while providing the skills that job seekers really need in order to compete in today’s market, it sends confident and qualified people back into the workplace. Outplacement firms match departing employees with companies that need them, thus enabling employees who’ve been made redundant to be re-employed quickly. 

Not only does this boost the economy, it boosts the well-being of those employees who’ve been affected. However, a potential downside of this for the company making the redundancies is that former employees might find better, more fulfilling roles within a competitor company. This does depend on the details of their employment and redundancy agreements. But even so, it’s a small price to pay considering the massive benefits that outplacement brings.

Summing up the benefits of outplacement

There’s no question that in a difficult situation, outplacement is the answer to any organisation’s talent strategy, helping smooth over one of the most stressful parts of the employee lifecycle – redundancies. By providing a 360 degree outplacement service, you can ensure that redundancies take place without taking a hit to your reputation. 

• You can show surviving staff that they’ll be taken care of, no matter what happens, while reducing the levels of stress that come with any change.
• You can put your mind at ease and make the best of a bad situation by offering outplacement services to staff, rather than leaving them high and dry with no support. If you’re concerned about your brand, retention rates, and engagement levels, managing redundancies needs as much focus and attention on it as hiring and developing talent.
• Outplacement provides huge benefits for impacted employees, by helping them feel supported in their career transition and being able to move on to a new position before the money in their redundancy packages runs out. By showing your understanding and dealing with it, this allows you to continue to be an employer of choice, because staff members will understand that you really do care for them even after they’ve left.

It’s vital to consider all of the above benefits of outplacement when searching for the right outplacement service provider for your company. Remember that using the wrong outplacement provider could be just as detrimental as not using one at all. By switching to using the services of Careerminds, businesses can save between 50% and 70% on their current outplacement provider and can then reinvest those savings into programmes that solve key business conundrums such as developing and retaining top talent.

Keen to learn more about the benefits of outplacement at Careerminds? We’d love to partner with you. Click on the button below to schedule a time with one of our experts. Then you can decide if Careerminds is the right partner for your company’s outplacement needs.

Elizabeth Openshaw

Elizabeth Openshaw has over 12 years of experience in the job search sector, including extensive expertise in outplacement and CV reviews. Previously a Journalist on national publications, she is Director of her own company, OpenDoor CV Expertise Ltd. You can connect with her at Elizabeth Openshaw | LinkedIn.