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The value of providing an outplacement benefit can be
directly measured. It can impact the following areas:
The Bottom Line: budgeting for outplacement as part of the separation
package makes good business sense. It is as essential as offering some
form of severance, and can directly impact the bottom line. It decreases
the amount of time workers obtain unemployment pay, and reduces the
potential for lawsuits.
Reputation and Public Image: in an age where companies'
reputations can easily be tarnished, the value of being viewed as a
good place
to work is important, as is the image presented to shareholders,
customers,
and vendors. Outplacement helps promote the company’s image
as a good corporate citizen, and decreases the cost of turnover among
remaining
employees. Providing outplacement demonstrates to the community that
the company values its human capital.
Decrease the Potential for Lawsuits: angry people sue. Offering outplacement
can diminish the resentment, hurt and anger many laid off workers
feel. By offering a structure that is focused on moving onward,
workers have
less time to fret and vent about the company and its perceived treatment
of them.
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Preserve Morale and Productivity of the Remaining Workers: "It
could have been me." Most employees who remain after downsizing
have this thought. Once the loyalty contract is broken between employers
and employees, the remaining employers look to their displaced co-workers
to see how they are being treated. Downsizings create a disruption in
business, as workers gossip, theorize and worry about the impact on
their own lives.
Providing a solid outplacement plan can squelch this negative energy
and provide reassurance to the remaining staff.
Preserve the Dignity of the Displaced Workers: knowing that the company
has provided a free and valuable service to assist the displaced
employee become reemployed quickly can help preserve their self-esteem.
Armed
with the tools, displaced employees become motivated to enter a
job search campaign with confidence.
Enhance the Ability of the Displaced Workers to Become Re-Employed
Quickly: studies have shown that outplaced employees find work
quicker, and often
even at a higher salary when they have the benefit of career transition
services. This is because most displaced workers are critically
weak in the skills needed to aggressively look for work. Career
transition
programs include resume development, interview training, and job
search coaching. By offering outplacement services you are providing
the
training and support displaced workers need to find new employment.
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