10 Reasons Why You Should Invest in Outplacement Services

10 Reasons Why You Should Invest in Outplacement Services

COVID-19 pushed the boundaries of work—and life— as we know it, catching many people off guard. When work became more fluid, the needs of the organisation and its employees changed with it. Unfortunately, businesses have found themselves suddenly pinching for money and desperate to find new ways to increase revenue. Others have turned towards downsizing, reducing costs, and making some of their employees redundant.

Many seasoned business experts know that for their businesses to thrive, they need to upgrade and keep their products and services within marketplace trends. As businesses change their structure, they also need fresh talent in different roles and responsibilities. They may need more staff in a profitable area and less in the portion of the business they are wrapping up. As these continuous business realignment changes happen, outplacement services can benefit your employees and most importantly, your organisation, especially when layoffs, redundancy, and furloughs are unavoidable.

As an employee who has been made ‘redundant’ before, let me tell you how it will go for them in this ever-changing environment.

Many of your exiting employees will turn to traditional job-hunting methods they have used in the past. The usual hullaballoo – putting all their time and effort into looking for job ads and sending their resumes and cover letters. After a few weeks, they will be in for a rude awakening because—surprise! The job field they once knew has now changed!

“What’s ATS? SEO? Keywords?”

“What do you mean I need to do marketing? I’m just looking for a job!”

They will feel anxious and disheartened when they don’t get any response from the countless job sites that they have been on. It is the same old story we hear from hundreds of candidates every month.


Can you afford it?

As a company in the frontlines of recruitment here in Australia, we’ve learned that for some organisations, outplacement services just translate to traditional HR. This means their HR Manager does their best by leading people towards Employee Assistance Programs, a website, or a storage link where they can find pre-recorded videos and “self-paced” training. But here at TPR, our main driver is CARE. We put our personal touch in every service we do—be it writing resumes, tailored cover letters, or hosting 1:1 live career coaching sessions. We know what it feels like to be made redundant and we know the tools they need to go into the next chapter of their professional careers.

Let us be honest, redundancy and outplacement services are some things that you hoped you would NEVER need. With TPR on your side, we can work with you to deliver solutions that align with your company’s business needs.  Think your organisation cannot afford these services? Send us an email at info@theperfectresume.com.au first, before you let go of the idea. You’re in for a surprise!

Here are the TOP 10 reasons why you should invest in outplacement service.


1. It’s the ethical and moral thing to do

Being laid off, or worse made redundant, is already an upsetting and life changing event for all parties involved, especially so in the light of the COVID-19 pandemic. Workforce reductions, layoffs and other types of employee terminations typically have a negative effect on the morale and productivity of the remaining staff. But if handled properly, the whole process can enhance the dedication and motivation of the remaining employees. Caring for your employees who are on their way out of an organisation also sends a strong message of compassion, integrity and respect to the rest of the team. It also greatly reduces the risk of litigation, which often comes up when outplacement services are not provided.

2. Reduce costs and lawsuit claims

Defending an unlawful termination is expensive, time-consuming, shrinks the morale of the remaining staff, and can injure the reputation and perception of the company. Seeking outplacement services can help the business take appropriate action when letting some employees go. Offering an outplacement package as part of a severance agreement can reduce the anxiety of the laid-off employees and, therefore, the risk of lawsuits, especially if the company publicly announces these layoffs to the media.

3. Increase loyalty among current staff

At TPR, we value transparency in all communications, ensuring your organisation can make it clear to remaining employees that their colleagues were let go through no fault of their own. We also recommend that the organisation assists exiting employees through outplacement services to maintain morale and productivity at a time when many employees are feeling added stress.

Offering outplacement services to the laid-off employees is one way to show the remaining employees that they are valued and that the employers have “conscience,” which can have a positive impact on their morale, commitment, retention, and productivity.

4. Attract and retain great talent

In a tight hiring market, companies must compete to attract key talent. Including outplacement services in your employee benefits package can be an effective way to differentiate your company from the competition. It’s a benefit candidates appreciate. In fact, in Intoo’s 2015 Workplace Flexibility Study, an impressive 71% of job seekers said they are likely to choose a company that offers outplacement over a company that does not.

Outplacement also helps retain valuable talent. Often, one or two employee departures—whether voluntary or due to a termination or layoff—can trigger more departures and result in higher turnover rates. This phenomenon is so well-known that there’s even a term for it: turnover contagion.

But turnover contagion can be curbed. One study published in the Academy of Management Journal found that “perceived supervisor and organisational support have been demonstrated to positively predict levels of on-the-job embeddedness.” Basically, employees are less likely to leave a company if they feel supported by their supervisor and company at large.

One way to improve employees’ sense of support is by providing outplacement services. When exiting employees are treated well and given opportunities to transition smoothly to new jobs, remaining employees take note of that support. By offering all employees outplacement services, your company can acknowledge that people today will likely change jobs many times—and show support for their long-term careers beyond their tenure with your company. This can improve company culture and, correspondingly, employee loyalty.

5. Improve your brand reputation

A company's brand and image are everything these days. Outplacement reinforces a positive view of the firm by the staff and community. Executive outplacement firms promote a great business reputation, demonstrate your company’s commitment to current and former employees, and showcase the firm’s ability to promote the solutions modern professionals need, such as access to transfer options, networking connections, and job boards. Besides, maintaining an excellent relationship with the terminated staff not only preserves the image of the business but also ensures any future dealings with them are positive.

6. Elevate your severance benefits

Today, most firms use outplacement as a ‘bargaining chip’ during an individual compensation negotiation. Outplacement packages offer the terminated employees tangible benefits compared to other severance options, most of which are costly such as additional payout figures.

7. Strengthen the impact of your values

There is a substantial amount of data that supports the connection between value-driven organisations and long-term productivity and most companies have core values that highlight how invaluable their staff are. Providing outplacement packages demonstrates that the company’s core values aren’t just platitudes.

8. Amplify your customer base

Employees often also have other roles as customers, business referrers, and volunteer brand ambassadors for your company. This means that even when employment ends, the former employee’s other roles can continue—or not, depending on how their offboarding experience is handled.

Offering outplacement services can ensure that the relationship with departing employees remains positive. If they were customers or business referrers, a positive offboarding process will increase the chance they remain positive brand ambassadors.  

9. Be ready for inevitable economic shifts

Companies are often caught by surprise when the economy takes a downturn. But the cyclical nature of the market is something all companies should anticipate. In fact, many predicted an economic outlook would shift. For example, Bloomberg reported “the chance of a recession over the next 12 months has risen to 30% from 25%, according to a June 7-12 survey of economists.”

Because it’s impossible to predict exactly when a recession will hit, preparation is key. One situation to be ready for is a reduction in workforce. Though unfortunate, layoffs are common and inevitable, as they happen not just when a company is experiencing difficulties but even when it’s expanding and growing. Some divisions may need to shrink or be eliminated altogether to allow for growth in other areas.

Many human resources professionals discover outplacement services far too late in the process, after reputational damage has been done. Once plans for layoffs are in motion, it’s often a challenge to address all the legal concerns and prevent costly mistakes—let alone logically evaluate different outplacement services for their quality, effectiveness, and costs. At TPR, we tick all the boxes, therefore, get in contact with us today at info@theperfectresume.com.au.

10. Keep your business moving forward

Survivor syndrome is one of the most common occurrences in the workforce and relates to the negative effects experienced by remaining workers after a major organisational change. When an employee is constantly worried about if they’re going to be the next cut, frustration and resentment towards the job builds, which makes productivity dwindle. If everyone knows there are outplacement services available and that the company is willing to assist them in case more layoffs are needed, it immediately boosts morale and it proves that you’re a value-driven, trustworthy, and compassionate company.

The Takeaway

Employees receiving career transition support land new positions faster and are more likely to say good things about their former employer. With TPR helping your employee to move forward in their career and further supporting your remaining team with our management toolkit, we can keep your employees happy and as the mantra goes, “happy employees produce better results”.

Get in contact with a career consultant today to discuss how we can support your organisation at info@theperfectresume.com.au.

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