Why do organisations offer outplacement to departing employees?
Ignoring the simple fact that offering a service to support employees who are facing redundancy is simply the right thing to do, there are many additional benefits to the company.
1. Brand protection
Industries are small and people talk, especially with the rise of social media and past and present employees having access to rate organisations on websites like Glassdoor. Redundancies are hard, and no matter the level of understanding it impacts people’s lives in a potentially negative way. If the process is mismanaged the impact can be significant, word will spread and your brand as an employer will be damaged.
2. Litigation
Offering support to those being made redundant lessens the potential of any legal repercussions. If a former employee remains out of work for extended periods of time, they will find it increasingly hard to move on from the ‘damaging event’ and start blaming their previous employer for their unemployment.
3. Internal reputation
Redundancies will not just affect those being made redundant, the news rumbles across the business and reminds every one of their possible transience and puts their own job security in question. Offering support to transition employees into new roles and careers outside of the organisation can reassure others that the business cares for their future. This will help with employee engagement and how your people talk about the business and your culture.
4. Managing Change
Change in any business is hard and when people’s livelihoods are in question, the impact is intensified. When communicating the redundancies or requesting applications for voluntary redundancies, having a support package in place helps land the news in a more positive and supporting light.