Why Should Companies Invest in Outplacement?

Outplacement Jun 07, 2020

It is a new and happy beginning for an employee when he/she gets hired.  It is because of all the opportunities provided. And what about the layoffs? Just like hiring, it is a part of every company and is extremely stressful on the employee.  They lose not only income but identity too. And keep asking themselves in their head, ‘‘What next? What should be my step now?”


It is not easy for managers to do this. It is hard for them too. However, they can make it better by helping the ex-employees in taking the next step in their professional lives. It is where the outplacement services come in.

What is Outplacement?

Outplacement helps the employees being laid off by offering support to reorient themselves in the job market. It supports the terminated employee in their pursuit of a new job. Outplacement services can include things such as reviewing resumes, job search advice, interview preparation, customised coaching, and career evaluations.

Outplacement services

What is the need for it?
Why should a company support an ex-employee?
What good does it do to the company?

Here are the reasons why a company should invest in outplacement!

#1 Reputation

A frequently cited perk of outplacement is the well-wishing relationship built up between exiting employees and the previous employer. These employees are given support and guidance because of which they can leave their job with dignity.
Since these exiting employees are provided with help and support they do not go on talking ill about the company. So it has a lot to do with employer brand protection.

Brand Protection

#2 Decision Making

At times, it could be difficult for an employer to put people out of work. And it makes taking decisions tough. By helping employees, you feel better as you have gone beyond your remit to safeguard your staff and the organisation. The main aspect of outplacement services and career transition support is to highlight the value of your workers and focus on the long term benefits for your organisation.

Decision making

#3 Liability Protection

As an employer, you are putting your corporate values into practice and keeping your promises to employees to ensure to hire in the future. Moreover, outplacement reduces the chances that they will pursue legal avenues to get compensation from your business. Getting employees focused on their next career steps helps protect you from the legal remedies often sought by angry terminated employees.

Outplacement reduces legal avenues

#4 Emotional Support

When the exiting employees have an unbiased and supportive leader to talk to, they will be at ease while discussing their problems. An open-minded conversation is a great stress buster.
Employee engagement surveys that are filled by the ex-employees can help the company to better itself and provide more emotional and psychological support to the current workers by bringing in the required changes. It reinforces the company’s psychological contract by assuring the current employees that they will be taken care of if they ever find themselves in a similar situation.

Emotional support is the need of the hour

#5 Improves Retention and Rehiring process

Although reductions in the workforce are intended to cut expenses, it is costly and time-consuming to continue interviewing, employing and embarking new employees. Instead of firing at one department and hiring in another, redeployment programs enable organisations to retain high-performing, talented employees during corporate restructuring times. In addition to the obvious financial benefits, redeployment systems increase trust, reduce the loss of company expertise and boost productivity.

Talent retention is an art

#6 Reduces  Unemployment

Changes in job cause a skills gap so many of your laid-off workers may need to improve and enhance skills to appear relevant to employers. Like, a professionally written resume, networking and job-search advice from a career coach, and hand-picked jobs work to make sure that every worker impacted by the workforce changes necessary in your business can compete for the best jobs in a better and speedier way.

Laid-off employee

So companies should take outplacement as an investment in the relationship between them and the employees, be it the previous ones or the present ones. Outplacement will bridge the gap between the employer and laid-off employees. It will be a win-win situation for both.

Aishwarya Narang

An optimist who loves to create.

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