5 Reasons to Offer Outplacement Support
BlogBusiness EvolutionHR Advice Posted: Tuesday 1st May 2018 by
When tough choices need to be made about the future of the workforce, its time for managers to step up and do the right thing.
You could be terminating just one employee on mutually agreed terms, and outplacement forms part of the settlement agreement. Or the company is downsizing, you’re realigning your costs, and removing an entire team. Whatever your business situation, here are five solid reasons to offer outplacement support.
It’s the right thing to do
Without a doubt, providing outplacement support is the right thing to do.
Job loss is listed as one of the top ten most stressful experiences of modern life. This alone can have a dramatic effect on finances, family, and mental health. In more extreme cases, it can also have knock-on effects for years to come.
When faced with the option of providing outplacement support for employees that have worked hard for the business, sometimes for most of their lives, the choice is often a simple one.
Protect the company’s reputation
In a digital world where reputations are born and lost in a viral tweet, businesses are more aware of protecting themselves against reputational damage than ever before.
Job losses and redundancies can rapidly hit the local news headlines, but with outplacement support in place, you’ll soften the blow.
Lower the risk of legal claims
Demonstrating your commitment to supporting your employees through the redundancy process will significantly decrease the risk of legal action.
In light of the Supreme Court’s decision to scrap Employment Tribunal fees in the summer of 2017, anyone who did not take tribunal action within the last four years that could have done so could now take their former employer to court at no cost.
With no employment tribunal fees to pay, claims have substantially risen against employers across the country. With this in mind, its imperative that your company’s redundancy processes are entirely watertight.
Boost productivity across the workforce
Although there is no limit to how long redundancy consultations should be, if you are making more than 20 redundancies then discussions should start at least 30 days before any dismissals take place. If more than 100 layoffs are necessary, then 45 days is needed between the first day of consultation and the first dismissal.
However, many businesses choose to allow more time for their redundancy process as it provides affected employees with greater options for sourcing alternative employment. Often, this means that the redundancy process lasts for weeks, if not months. That’s a lot of time for employees to lose focus, which can cause a substantial drop in productivity.
Leverage engagement from those left behind
They say that loss is felt the deepest from those left behind. Seeing friends and colleagues lose their jobs is never an easy thing to witness. And, it can cast the shadow of fear and doubt across the entire company.
By offering outplacement support to those affected by redundancy, the company is showing how well it’s prepared to look after those in crisis. Employees that are left behind are more likely to be engaged, despite a temporary drop in morale.
The most critical factor in offering outplacement support is to choose the right provider. Outplacement can be costly and its a significant expense at a time when finances may be unstable. Choose a qualified, experienced supplier, with a team of career and HR consultants with a varying and complementary skill that will increase your employee’s chances of career success.