Supporting your workforce is critical for success in business, and that support extends to taking care of exiting employees. Outplacement services empower outgoing employees to succeed in the next phase of their professional journeys, which in turn benefits your organization and society as a whole. SVP of Right Management North America and Jefferson Wells North America Karel van der Mandele explains that the case for outplacement is as strong as ever.
What Are the Benefits of Outplacement Services?
How Outplacement Benefits Employees
Outplacement services are offered to employees who have recently been let go, whether through layoffs or termination. Outplacement functions as a gesture of good faith, aimed at helping the affected employee transition into a new job or career more quickly.
As van der Mandele notes, the benefits of outplacement services are as much about emotional support as career mobility.
“Outplacement plus coaching helps employees manage the emotions related to losing their jobs and shift their energy toward the future instead of looking to the past,” he says. “Career coaches can help turn an often stressful experience into a positive one by helping the individual chart a new path for their future.”
Career coaches help exiting employees develop a personalized action plan that provides clarity and focus in their job search. This includes but is not limited to helping them craft effective resumes and cover letters and preparing for interviews.
Van der Mandele notes that coaches can also provide exiting employees with networking opportunities or even give them an inside track on job openings.
“Offering professional guidance on resume building and branding assures that job seekers will be competitively positioned much faster than they would be on their own,” he says. “Career coaches can even offer advice on how best to negotiate salary offers and other job details once an individual has landed an interview.”
How Outplacement Benefits Organizations
The costs associated with offering outplacement services can be far outstripped by the benefits they provide. Specifically, outplacement services can help create a more positive employee experience, which can aid with employee retention.
“Layoffs affecting 1% of the workforce have led to a 31% increase in voluntary turnover,” van der Mandele says. “ Providing outplacement services sends a message that employers care about the welfare of their exiting employees beyond just providing severance packages. This can help maintain morale and loyalty among both current and former employees.”
It can also help with talent acquisition. Offering outplacement services and demonstrating care for exiting employees creates a positive brand image. With potential employees leveraging platforms like Glassdoor and ZipRecruiter to learn about company culture, positive word of mouth from current and former employees is critical for growing your talent pool.
If the costs of outplacement give you pause, van der Mandele notes that these could be offset by limiting the financial impact of unemployment: “Employers may be able to save money by helping employees find employment quickly, avoiding additional costs related to unemployment taxes.”
How Outplacement Benefits Society
By helping keep people employed and empowering companies to grow, outplacement benefits society at large.
“When individuals receive outplacement, they can land a new job quicker,” says van der Mandele. “This increased speed of employment helps reduce the overall number of people unemployed in the long term, which benefits individuals and creates a positive impact on society.”
This positive impact includes supporting sustainable economic growth. With a strong job market comes higher wages, which in turn increases consumer spending. More money flowing into the economy means more opportunities for businesses to develop and expand, which can increase the need for talented employees.
Explore Outplacement Through Right Management
Right Management is a worldwide leader in talent solutions, including outplacement services. Our outplacement solutions are enhanced by PowerSuite™ Next, a digital career platform that has helped exiting employees find work twice as fast as the average reported by the U.S. Bureau of Labor Statistics. These solutions are personalized to match the needs of the individual and can be tailored toward executives and even groups of employees.
If you’re eager to learn more about outplacement services and how they can benefit your business, contact us today.