Why companies should offer outplacement services and career coaching

Because It’s the Right Thing to Do

For the Employer:

Saying goodbye to employees is never easy, whether it’s a lay-off or a termination or if it is one employee or one hundred employees. It is deciding who and how to terminate an employee that is never pleasant. The reality is it happens. Sometimes an employee doesn’t work out, so you must say goodbye. Or even worse, you might have a fantastic employee but are forced to say goodbye due to organizational restructuring or budget cuts. Whatever the case might be, it isn’t fun, and frankly, it doesn’t get easier; but offering career outplacement services helps. It might seem counter-intuitive that a company looking to cut costs would spend money on an employee who is no longer with the company. But there are many reasons why offering a career outplacement service to departing employees is beneficial. But, because it is the right thing to do.

For the Employee:

Being let go is never easy. Work is what funds our lives. It’s how we make a living. It’s how we can eat, has a roof over our heads, takes vacations, and buy a home. You name it; we need work to survive. It also provides meaning to life. It gives direction, social connections, and status to contribute to an organization. It doesn’t matter if you have been with an organization for two months or twenty years; saying goodbye isn’t easy. It doesn’t matter if you are young or old, male or female; saying goodbye still hurts. It doesn’t matter if you are an entry-level or a high executive; saying goodbye sucks. But, being offered a career outplacement service is the right thing to do.

And Here Are a Couple Reasons Why

  • It will help your company brand. It will show that even though the organization made changes and let an employee go, they still care. It shows that the staff working in your organization are more than a number. They are people who put time and effort into helping with the growth of a company.

  • We live in a social media-driven economy now. Reviews and reputation are critical components of a company’s success or failure. If you have an upset employee, the news can spread fast. It is easy for someone to write a negative review on Google or Glassdoor. If a departing employee is offered a career outplacement service, they are more likely to turn a negative situation into a positive one and not write that bad review.

  • Not offering an outplacement service doesn’t just affect departing employees; it can be a morale killer for existing employees. The chances are good that the previous employees and current employees are friends. Employees who are left may be worried they are next to or extra stressed with added workloads. Whatever the case, you don’t want your high-performing employees to start looking for another job. Providing an outplacement service to the departing workers will reduce the likelihood of departing employees recruiting current employees to leave. And it shows the current employees that you care.

  • Spending money on an outplacement career transition service will pay back in the long run for several reasons.

  • First, unemployment claims may be reduced if the laid-off employee can return to work sooner. Remember that more unemployment claims filed also means a higher unemployment tax the company is responsible for. Therefore, unemployment claims savings will quickly pay back the cost of outplacement packages over several years.

  • Secondly, if a laid-off employee feels supported during the termination process, this will help prevent lawsuits and accusations of wrongful termination by an unhappy employee. This type of news could hurt the company in so many ways. The financial cost associated with lawyer fees during litigation will add up really fast. And it could cause investors and customers to doubt the company’s integrity, leading to a significant income loss.

Do what’s right; hire a career outplacement service for departing employees.

Contact NimoHR for Outplacement Services.

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