What Business Owners and Managers Need to Know About Outplacement Services

Companies large and small have faced hard times over the last 12 months, and many have had to lay off workers as a result. If you’re in a tenuous position, you may need to say goodbye to some of your team to keep your business doors open, as hard as that decision may be.

Thankfully, outplacement companies are there to help. They assist staff members to transition more effectively and can help the businesses letting them go, too. Learn the basics of outplacement services so you can tell if they’re something you should invest in this year.

How Outplacement Works

This term refers to services provided by companies who specialize in helping individuals or groups to prepare, search for, and land a new job after being made redundant or otherwise unexpectedly unemployed. Companies contract outplacement firms to work with the people they have to lay off.

Outplacement providers can handle various tasks in their roles and help both individuals and groups, such as when businesses have to let go dozens or even hundreds of staff members at a time. Specialists help those who need a new job to design a plan for their future, create an updated resume and other job application documents, network, practice answering interview questions, and choose between job offers. They also sometimes assist workers with negotiating employment terms when accepting a new role.

Top Reasons to Use Outplacement Providers

There are many reasons to use outplacement providers for your business. For example, doing so treats your laid-off employees with more dignity and respect and helps them deal with the shock of having to leave. It makes it quicker and easier for people to get new jobs, in most cases, which means less stress and guilt for you and less anxiety and frustration for those you let go.

When you make outplacement services available to former employees, you increase the likelihood that they’ll speak favorably about your business to other people later, rather than negatively. You don’t want your venture’s reputation to be tarnished by past employees bad-mouthing you and your brand around the industry.

Sometimes organizations have to downsize and say goodbye to workers they’d prefer not to, purely because of financial restraints. In this situation, it pays to retain decent relationships with these people so you can potentially hire or work with them again sometime later down the track. No one wants to burn bridges unnecessarily, after all.

You may want to consider using outplacement services to reduce the risk of legal action arising against your firm from disgruntled former employees. Outplacement specialists help people get over losing their jobs sooner and may even aid them in finding a better one ASAP, which means people typically won’t feel so angry about being let go. This, in turn, may give you some liability protection.

No list of the pros of using outplacement services can be complete without mentioning the staff you retain. Your current team may feel upset, anxious, stressed, unmotivated, angry, etc., when their colleagues are laid-off. These negative feelings can be mitigated, though, if they see managers assisting former employees via access to outplacement services. Your workforce is likely to feel valued and cared for when they know you take care of people as best you can.

Tips for Choosing the Right Outplacement Company for Your Needs

If you know you may need to hire an outplacement provider in the coming months, it’s crucial to find a company that suits your needs. When you start researching firms, price is going to be at the forefront of your mind. This factor is important, but make sure you read quotes carefully and that each package contains the same features, so you can compare pricing properly.

Many factors beyond cost are vital, too, though. For example, find out how much experience different organizations have in the outplacement realm and if they specialize in this area or do it as a small part of their business operation. Determine the service levels they provide and how customizable their packages are, as well as the credentials of the people who will be doing the on-the-ground outplacement work. Ask about how and when payments happen and what success rates the company has achieved for past clients.

Laying off workers is always a challenging part of being a leader, and most people dread it. However, knowing that you can offer outplacement assistance to workers is sure to lower your stress levels and lead to better results for both your firm and your former staff members.

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