Outplacement – Can You Afford Not To Make The Investment?

Job loss is a deeply human experience, and the events of 2020 have made us all keenly aware of how any one of us could have our livelihoods taken away due to circumstances beyond our control. 

At one point, restructures resulting in organisations downsizing seemed to be all around us as our economy navigated the challenges associated with the COVID-19 pandemic. This in turn led to more organisations seeking outplacement support, but with some of these not being totally aware of the value this service can add. This leads me to ask “what is true outplacement?”

Outplacement essentially helps displaced employees navigate the loss of their role and helps guide them to ‘what’s next’.

It has been said by some cynics that outplacement programs are something that corporates do when making large scale redundancies as a bit of a “PR exercise” However, this view has consistently proven wrong over the course of commercial history and the economic cycles that influence business. 

Let’s look more closely at the case for outplacement programs and why it is now more important than ever to have a strategic approach when it comes to supporting those who are leaving organisations.

There are three specific groups directly affected during downsizing or restructuring programs.

Employers

As an employer, having to let staff go can be extremely stressful. The decisions made directly impact people’s lives and also dramatically impact the knowledge and skills base of the organisation itself.

‘Survivors’

There is ample research that shows ‘survivors’ who successfully make it through a redundancy program, often feel guilty about retaining their jobs when friends or colleagues are exited.

Displaced or ‘former’ employees (and their families)

At one point these people were the ‘new starters’ welcomed with open arms. Now, they are being told they are surplus to requirements and expected to move on often after years of faithful service and achievement.

Each of these three groups has a lot to process when going through a downsizing program and the concept of an outplacement program can be of strategic importance to an organisation’s ongoing success.

As children we were taught to treat others as we ourselves would like to be treated. Our human conditioning tells us that helping those who are displaced, is ‘the right thing to do.’ However, there are far more strategic reasons behind this.

1. Maintaining brand integrity and positive narratives in the market

When a former employee leaves the nest, they go back out into the market with a view of their time with an organisation. They are speaking with recruiters, competitors and potential talent their former company wants to attract, not necessarily now, but in the future. Stories about employers who handled downsizing poorly are told with passion and conviction, spreading through families, on social media and even within your own walls. Their firsthand knowledge of how they were treated will matter in the longer term and impacts your corporate “brand” and desirability as a potential employer.

2. Protection

When outplacement goes wrong, a disgruntled employee might blame an employer for ongoing struggles. If it all goes really pear-shaped, it may even end up in a costly legal battle.

For those organisations striving to become an ‘employer of choice’ this type of thing can make an impact.

A third-party outplacement partner will take steps to ensure this can be avoided, particularly if you involve them right from the start in the planning and communications.

3. Limiting company downtime and ensuring productivity

We have all seen it. When an organisation goes through a restructuring process, the workplace focus shifts from day-to-day work to internal meetings, résumé updating and job interviews. This process takes time, costs money and is coupled with internal whispers and water cooler conversations. Let’s be honest, when an employee is worried about their job security, they are often not as productive as they would normally be. The process is stressful, time-consuming and can be demoralising to the entire workforce.

Once through the process those who remain at the company are left with the memory of how their former colleagues were treated. When an outplacement partner is introduced that can work strategically with company management, it can go a long way to relieving pressure throughout the organisation at all levels and ensures productivity remains.

4. Employees are re-employed faster

The anxiety of losing a job fades quickly when a new opportunity arises in its place. This highlights the importance of solid coaching on how to conduct a productive job search. Good job searching skills produce good results. Indeed, a person working with a good career coach has shown to almost halve the time they spend in job search. Outplacement specialists have the experience and contacts to facilitate better transitions. This makes for happy ex-employees, and stronger reputation in the marketplace.

5. The rise of the regions

According to the Australian Bureau of Statistics, during 2020 capital cities experienced a net loss of 11,2000 as people moved to regional areas, the largest quarterly net loss on record and the trend is expected to continue.

This has inevitably brought about increased activity in the regional job market. At some point, however, regional employers may find themselves in a position where they need to let employees go. For this reason, outplacement needs should be carefully tailored to markets, individuals and geographical areas. People who are outplaced in regional areas need the right kind of support – including well-networked regional coaches who can offer contracts that will open doors in specific locations. The right outplacement provider can do exactly this.

Letting employees go is a difficult process and always carries some cost. The question is whether you invest to ensure the separation is successful.

‘Successful’ for the affected employee quickly transitioning into a new role or career.

‘Successful’ for the survivors seeing that their ex-colleague has been looked after and feeling that they want to remain with the company.

‘Successful’ for the organisation continuing in its new direction, where the brand is not impacted negatively in the market, and they are seen as a responsible and caring employer.

Professional outplacement is not a silver bullet; however, all the evidence suggests that outplacement strategies, coupled with the broader processes such as strategic communications programs, have real benefits for employers as well as current and former employees.

So then, can an employer really afford not to make the investment?

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