Why You Should Consider Implementing an Outplacement Scheme in Your Business
Having to let go of staff is an unfortunate reality of running a business. Therefore, effectively planning for this eventuality is crucial to support employees during a tumultuous time and can play an essential role in improving morale among your workforce. One way to prepare for this is to use an outplacement service. Here are some ways outplacement can benefit your company.
What Does Outplacement Mean?
Outplacement services seek to support employees that have recently been laid off. Companies that offer such services will often provide CV reviews, interview training, and advice to help search for a job. The outplacement support offered by Randstad RiseSmart includes such benefits, which can help your company in a multitude of ways.
Providing support for employees after they have left your company might seem counterintuitive. Still, it can significantly impact how your business is viewed both by outsiders and those that work for you. Investing in an outplacement scheme can, therefore, be beneficial to your company as a whole.
Outplacement Can Reduce Other Severance Costs
Making an employee redundant can be costly. Often, your company will be required to offer some form of severance pay and benefits to a staff member after they depart. Outplacement can be a valuable way of mitigating some of these costs. Your company can use such services to bargain with employees as you can offer some tangible benefits and reward your employees when their employment ceases. Outplacement services will often be less costly than other severance packages, so investing in such a scheme can make financial sense for many redundancies.
Outplacement Improves Public Relations
It is a common occurrence for a company to invest heavily in public relations. Showing that your business is committed to the community and singing the praises of your services and products can improve your brand’s image with the public and it is also the best business strategy. One of the best ways to maintain a good reputation is to ensure that you support employees that leave your business.
Generally, losing your job is a stressful experience, and staff members are unlikely to be delighted at the prospect of searching for new work. However, if you invest in a strong outplacement scheme and offer support in the months following a lay-off, you can help temper some of the negative emotions your employees might feel.
Supporting your ex-employees as they seek new work can offer long-term benefits for your business. In many cases, redundancies are circumstantial and are not related to the person in question’s performance. You never know, if your company recovers from the setback that has led to redundancies, you might wish to re-hire employees. Maintaining a positive relationship with them can be helpful in this regard.
Outplacement Can Increase Morale Among Existing Staff
Seeing a colleague get laid off can also be highly stressful for employees that have not lost their job. Not only will they be concerned about the wellbeing of a workmate who is going through the wringer, but they will also be worried about the future of their own employment. If your company does not have an outplacement scheme, staff members may fear that they could lose their job at any minute, without any consideration for them after they leave.
Using an outplacement scheme can help to minimize the impact redundancies have on employees that retain their jobs. Seeing your employer take steps to ensure that a colleague who has been made redundant is well equipped for the future can be a massive boon for staff morale. They will see you take care of your workforce, even after leaving, and will likely become more loyal to your company as a result.
It Can Protect Against Legal Action
As previously stated, being laid off is often accompanied by a slew of negative emotions. Ex-employees might be understandably angry and upset with the decision. These feelings can often lead to legal disputes over the legitimacy of the redundancy. If an ex-staff member decides to take legal action accusing your business of unlawful termination, it can lead to hefty legal fees, payouts and can tarnish your reputation.
Using an outplacement service can significantly decrease the risk of a disgruntled employee taking your company to court. Investing in a service that can help departing staff find work will help show them that you care about them. Offering genuine sympathy for ex-employees can help to show them that their redundancy was a business necessity rather than a personal attack, decreasing the likelihood of legal challenges.
Should You Invest in an Outplacing Scheme?
Overall, the costs associated with implementing a robust outplacement scheme are greatly outweighed by the benefits it can offer. Redundancies and lay-offs are inevitable in business, so developing a strategy to make this process as painless as possible for both you and your employees is essential. Helping your staff to find new work after leaving your company offers myriad benefits, so investing in outplacement as a severance strategy can pay dividends in the long run.