Why should a company provide outplacement, or professional coaching to facilitate career transition, to a former employee? If the status of an employee, or group of employees, is changed due to business reasons other than cause, it's in a company's best interest for many reasons to offer the employee outplacement as part of the severance package.
- Internal morale
The least visible and most powerful reason for outplacement, is to improve the morale of those left behind. Employees (often called "survivors,") want to know that their former colleague has been treated fairly. There's a latent fear that they could be affected as well, so outplacement goes a long way to demonstrate company commitment during a time when continuing productivity is important.
- Brand development
From a brand development perspective, former employees can either damage your company's reputation or report fair treatment to their networks when they are terminated or outplaced. Which would you prefer? Being perceived as a responsible employer to the public and to your markets is part of your reputation and brand that both your customers and your future employees will research. Keeping and even building a positive reputation during cutbacks is wiser than trying to change a negative one.
Professional recruiters report that it is much easier to recruit and retain high performers for companies that treat their employees well and that have good reputations. How you handle employee terminations now contributes to your long term image and results.
It's much easier for an objective, third party to help an angry employee move on to the future than for the company to do so. Whether you'd like to be careful with terminating an employee in a sensitive position or need to defend your decision in legal discussions, Lassiter Consulting's services defuse tension and provide resolution. Lassiter Consulting takes former employees into their futures immediately and has a 30-year track record of no grievances filed against former employers.
The cost of outplacement is consistently offset by the expenses that are avoided, such as the ones above, as well as potential severance savings. Lower recruitment and legal costs combined with higher productivity and retention rates make outplacement cost effective.
Helping a former employee(s) who has helped you for years is responsible management. Regardless of how strong the economy may be, the rules of career transition have changed since the last time the employee made a transition. Let them leave as you would want to leave a company yourself. You may be working with them in some capacity in the future.