By: Shawna Simcik
This is a question on the mind of many HR, CFO and business executives. When SHRM and the national news consistently report that open positions outnumber the unemployed, outplacement can be perceived as an unnecessary benefit. So, are outplacement services worth your investment? I can honestly say, “it depends.”
Here is a list of three questions I recommend asking yourself as you explore whether to offer outplacement as part of your severance package.
Productivity will wane, survivors’ guilt and worry about whether their job is next will creep in.
- What will it cost if you lose the remaining employees?
Layoffs, whether one employee or several hundred, significantly impact your surviving population of employees. Productivity will wane, survivors’ guilt and worry about whether their job is next will creep in. Trust us – the business will see an increase in voluntary turnover. The transparency that you are taking care of the departed employees with compassionate outplacement services demonstrates a commitment to the remaining employees that you have their back, even on the way out.
- What would you do to protect your employment and product brand in the marketplace?
Gen Z has no grace for employers who don’t care for their employees. With the popularity of websites such as Glassdoor, how you treat your employees, specifically if a layoff is to no fault of their own, will influence your online brand, customer perceptions, and ability to attract new talent. Dig into what former employees say about their experience with your company – positive or negative and how they are treated from the beginning to the end of their employment lifecycle.
A notification gone bad could cost a business millions of dollars, not to mention the devastating effects on a corporate brand.
- Can you afford it?
Onwards HR, a separation management company, noted that a notification gone bad could cost a business millions of dollars, not to mention the devastating effects on a corporate brand. Some organizations choose not to offer outplacement because they believe it’s too expensive. Others determine that they would prefer to give employees the dollar value of outplacement as incremental severance compensation. However, our experience indicates that an employee with additional money in their pocket will blow the cash quickly. More quickly than compared to the skills and knowledge they obtain from an outplacement firm. Helping them find a job that provides more sustainable income than a short influx of cash.
The recently released ICC’s Business Trends survey indicates that the number one reason companies started offering outplacement in 2022 was to be “viewed positively by departing employees.” Read the full survey report here: https://bit.ly/2022workforcetrends
If you want to learn more about ICC’s online leadership development and management training, contact us at email@example.com or 865-855-4400.