Outplacement firms are becoming an increasingly common sight in the corporate world. With layoffs and downsizing becoming more prevalent, outplacement services have become a must for companies looking to provide some level of assistance to their displaced employees.
But what are the benefits of working with an outplacement company? Here are key benefits to working with an outplacement firm for the organization and the employees.
Benefits for an Organization
• Maintain brand reputation during a layoff
When layoffs happen, companies face a lot of risks – including lawsuits. Outplacement companies can help reduce those risks by helping maintain brand reputation during a layoff.
They do this by first preventing the spread of negative rumors. They also provide information about the company’s plans and ensure that all employees are treated fairly and with respect. This can help reduce the likelihood of legal action being taken against the company.
• Reduce unemployment tax rates
Outplacement companies are an excellent way for businesses to reduce their unemployment tax rates. When a company goes through a large-scale layoff, the state and federal government can charge the company unemployment taxes. This tax rate is based on the amount of unemployment benefits paid to former employees.
Outplacement companies help reduce the amount of unemployment benefits that are paid out. They provide resources and support to help employees find new jobs. This reduces the amount of time that employees spend unemployed, which in turn reduces the amount of benefits that are paid out.
• Expanding or downsizing
When a company is preparing for an expansion, outplacement companies can help by providing resources and support for the employees who will be affected.
Outplacement companies can also help a company that is downsizing by ensuring that all employees are treated fairly and have access to the resources they need.
Benefits for Employees
• Support employees during a termination or layoff
Outplacement companies provide support to employees during a termination or layoff. They offer career counseling and training, resume help, and job search and placement assistance. They also offer a sense of community and support during this difficult time.
• Help employees transitioning to a new job
Outplacement companies are not just for employees who have been laid off. Employees transitioning to a new job will also have a more positive experience if they have access to outplacement services.
Perhaps the primary benefit is that these employees are more likely to find new jobs quickly. Even better, the employees also tend to be more satisfied with their new jobs and earn higher salaries than employees who do not receive help from outplacement companies.
• Improves morale among the remaining employees
When a company goes through a large-scale layoff, the remaining employees can feel a range of emotions. They may feel scared about their own job security, angry at the company for putting them in this position, or guilty that they weren’t laid off instead. This can lead to a decrease in morale and productivity among the remaining employees.
An outplacement company can help improve the morale among the remaining employees by providing career counseling and resources, allowing them to feel supported and understood. An outplacement company can also help create a plan for the company’s future, which can give the remaining employees hope for the future.