Providing outplacement as a severance benefit is a smart and strategic business decision. It may seem counter-intuitive to invest in the welfare of ex-employees, particularly when the reason for redundancies is to cut costs. However, there is growing recognition & measurable data that outplacement coaching – expert one-on-one support to guide individuals in finding new employment– delivers a strong return on investment for employers during a difficult time.
1. Increase the productivity of survivors
When redundancies are made, the morale of remaining employees can decrease dramatically due to a rise in workload, loyalty towards lost colleagues and fear of future job cuts. This translates to lower productivity and negatively impacts financial performance. A poorly managed reduction-in-force, combined with minimal severance benefits has an overall negative effect on the entire organization – not just those immediately impacted.
Conversely, providing coach-driven outplacement programs which positively impact the well-being of transitioning employees and their ability to find new employment will improve the remaining workforce’s’ morale. The result is greater productivity and more discretionary effort from your core asset – the ‘survivors’ or remaining employees.
2. Reduce employee turnover and attrition
From the moment rumors of redundancy start to the transition period after transitioning employees have departed, employee attrition is likely to rise as employees leave a perceived ‘high-risk workplace’ or ‘unfair employer’. Typically, turnover is highest among those you least wish to lose. A personalized coach-driven outplacement program earns back credibility and trust, calming the flight of talented employees.
3. Reduce the likelihood of expensive litigation
Employees who feel the company has treated them unfairly during the reduction process are increasingly likely to settle their grievance in a tribunal – and rulings are favoring employees more often than not. Outplacement that provides a personal coaching relationship can reduce perceptions of mistreatment and decrease the likelihood of a tribunal. An independent coach can directly influence an otherwise angry individual – providing calm, reasoned, advice that will benefit both the former employee and the organization.
4. Keep your brand intact
Supporting departing employees is an important part of your overall employer and consumer brand. Companies that poorly manage the transition and provide little to no support for transitioning employees cause long-term damage to the public face of the business – as well as disenfranchising employees. Doing the right thing is more than just good PR – it’s long-term business thinking that will stand the test of time. Likewise ‘skimping’ on such high-stakes initiative almost always proves a poor investment.
5. Remove distractions from managers
Redundancies naturally coincide with increased tension and pressure on the business or function. Outplacement services can help alleviate the stress and time pressure faced by managers, leaving them in a better position to manage the remaining team and concentrate on the future of the business.
6. Reduce absenteeism
Absenteeism can rise significantly during times if reductions as a response to perceived unfair treatment of former colleagues. An outplacement program which is well received by transitioning employees will resonate across the whole business and can reduce absenteeism after downsizing.
7. Shorter searches = lower unemployment costs
Not only does your workforce gain the benefit of swift reemployment, but your company also saves money on unemployment and minimizes its experience rating. (On average, $1,800 for an employee making $50,000 and $9,000 for an executive making $250,000).
- CareerCurve candidates continue to find work on an average of 13 weeks, compared to the 22-week national average, as reported by The Bureau of Labor Statistics. Here is the math:
- The Department of Labor reports that it takes displaced workers an average of 22 weeks to find work.
- Based on this data, we save our clients 9 weeks of unemployment costs per employee. (On average, the unemployment benefit is 30% of the employee’s weekly base wages.)
CareerCurve Personalized Coach-driven Outplacement:
CareerCurve has a reputation for outplacement services that are industry-specific, practical, based on common sense, transparent, and easily accessed. We have the unique distinction of staying with the candidate until their transition goals are achieved. Always Results-Based, Never Time-Limited. Personalized coach-driven outplacement places the individual at the heart of the service, rather than merely ‘processing’ them through a predetermined path of theory-based workshops which leave the individual asking themselves, “so how does this affect me?”
- Our services are Results-Based, Never Time-Limited. Our solutions are not defined by a set number of meetings or a fixed time duration.
- We focus on what is most valuable to individuals going through a transition: one-on-one coaching.
- Our coaches drive the process and hold individuals in transition accountable to continue pressing onward to achieve results- a new job, new career, start a business, etc.
- We are philosophically 180 degrees from our competitors. We hold ourselves accountable to the individual in transition until they achieve their unique goals.
- Our personalized delivery model supports our coaches and the individual in transition, as we value one-on-one coaching expertise over “access” to a technology platform or an empty office. CareerCurve’s technology augments versus driving the transition process.
- We are personable, flexible, nimble, easy to do business with and accountable for results!