It's hard to think about losing your job, but if it happens, you can negotiate…
The numbers are staggering for layoffs right now for companies and is not anticipated to be slowing down in the New Year. There are over 120,000 individuals laid off in the tech industry this year alone according to a Stanford article. This can be the result of the “ Global economic turbulence has hit technology companies this year, leading to slowing revenue growth and widespread layoffs, even as some segments of enterprise spending on IT seem to be holding steady.” as noted in a ComputerWorld article.
CNBC’s Jim Cramer said, “I’m sure there’ll be many layoffs after Christmas. I don’t want to finger-point at the retailers who’re most likely to be thrown into bankruptcy when the holidays are over, but I do want people to realize that, in a way, our current high-inflation economy is a high-quality problem”.
When it comes to company downsizing, outplacement services are often overlooked. However, these services can be crucial for employees who are suddenly out of a job. Outplacement services provide career counseling, job search assistance, and other resources to help employees transition to a new job.
There are many reasons why a company might need outplacement services. Perhaps the company is downsizing due to financial difficulties. Or, a company might be going through a merger or acquisition, which can result in job loss for some employees. Whatever the reason, outplacement services can help employees through a difficult time.
In a 2018 Mercer study, 31% of organizations indicated that they offer outplacement for all or the majority of terminations. That number grew to 44% in 2021. In Canada, it seems that outplacement is even more ingrained, with 52% of Canadian respondents indicating that their organization provides outplacement services for all.
Outplacement services have become more popular in recent years as companies strive to take better care of their employees. Companies should want to have the affected employees gain successful reemployment, reduce the stress levels of employees who are let go, and provide the resources they need to find a new job.
It Is The Right Approach To Handle A Layoff
Regarding layoffs, companies have a responsibility to their employees to help them transition to new jobs. Outplacement services provide a safety net for your employees and can help your company avoid bad publicity. It is a way to show that your company cares about its employees and is committed to social responsibility. Outplacement can help your company attract and retain talent.
Outplacement services are beneficial to both the unemployed and the economy as a whole. By helping the unemployed find new jobs, outplacement services reduce the amount of time they are unemployed. In addition, outplacement services can help the unemployed find jobs that are a better match for their skills, interests, and values, which can lead to increased job satisfaction and reduced unemployment. Outplacement services can also help the unemployed update their resumes and hone their interviewing skills, leading to successful placement in new jobs.
Reduces Lawsuits From Affected Employees Laid Off
Outplacement services provide a safety net for employees who are laid off. They give employees a chance to find new employment and transition to a new company. This helps to reduce the financial burden on the company and allows the company to focus on its core business.
Outplacement services help to reduce the number of lawsuits from affected employees. They also help to improve the morale of the employees who are remaining with the company.
Increases Brand Loyalty
Outplacement services can help a company preserve its brand and reputation by ensuring that former employees are able to find new employment quickly. A company’s brand is one of its most valuable assets, and outplacement services can help protect that asset. When employees are laid off, they often feel betrayed by their company.
Outplacement services can help repair that damage by showing that the company cares about its employees’ future. Laid-off employees who receive outplacement services are more likely to recommend the company to others, increasing brand awareness and reputation.
Outplacement services can help a company differentiate itself from its competitors. Offering outplacement services can help a company attract and retain the best employees.
Statistics from Morning Consult show:
90% of consumers said it is important to them that brands take care of their employees and treat them well, even in tough times.
49% said they consider whether or not companies take care of their employees as one of their top five purchasing considerations.
From an Employer Branding Study of more than 1,300 job seekers and talent acquisition professionals conducted by CareerArc, said:
“those who reported having once been fired or laid off, more long-term unemployed workers 58 percent said their perceptions of those employers were negatively impacted by the termination or layoff. Meanwhile, only 48 percent of short-term unemployed workers reported the same.
Moreover, of those who reported their perceptions were negatively impacted by the involuntary separation, more long-term unemployed workersâ€”74 percentâ€”reported sharing their negative opinions of that employer online or with an acquaintance, compared to 63 percent of short-term unemployed workers who shared their negative views.”
Reduces turnover and increases employee engagement of existing staff.
Providing outplacement services can also help to reduce turnover of existing staff. This is because employees who see that the organization is willing to help those who are leaving will be more likely to stay with the company themselves. This can lead to a more stable workforce and less need for recruitment and training of new staff, which can save the organization time and money.
As noted in a Harvard Business Review, when a layoff is not handled correctly this can have an impact on the existing employees.
A 1% downsize in the workforce leads to a 31% increase in voluntary turnover rate the following year. They also reported that surviving employees of the redundancy experienced anxiety, guilt, and even anger, which ultimately resulted in:
- 41% decline in job satisfaction
- 36% decline in organisational commitment
- 20% decline in job performance
How much Does Outplacement Cost?
When it comes to the cost of outplacement services, employers typically bear the brunt of the expense. However, the cost of outplacement services is a small fraction of the cost of a typical lawsuit from a disgruntled employee. The cost of outplacement services is also a small fraction of the cost of recruiting and training a new employee. In other words, the cost of outplacement services is an investment that can save a company a lot of money in the long run.
The cost of outplacement services varies depending on the provider and services offered. They can be discussed in detail with the provider and customized to the needs of the company.
If you’re thinking about whether or not your company needs outplacement services, the answer is probably yes. The cost of outplacement services is a small price to pay to protect your company’s reputation and avoid costly lawsuits.