6 Myths About Outplacement Debunked

Are You Prepared for the Increasingly Challenging Business Environment?

With many factors like increased competition and the economic downturn creating an increasingly challenging business environment, leaders are frequently having to make tough decisions for the benefit of the company. The uncertainty is causing businesses to rethink their strategies and business restructuring has become common, but leaders must ask themselves if they are doing it properly?

Currently, all the best HR teams are providing Outplacement services for employees who have been displaced due to all the benefits it brings to both parties. However, even though many studies have proven the benefits of outplacement, many organisations are still unaware of the positives! There are still misconceptions regarding the service but business leaders need to know the truth. Here are 6 myths about outplacement debunked:

6 Myths About Outplacement Debunked

1. Outplacement is Just Finding Fired People a New Job

Although helping transition displaced employees a new job opportunity is one of the main objectives of outplacement, it is providing the mental and emotional support that is arguably the most important aspect. Losing a job is extremely stressful, and it is not uncommon for people to have mental breakdowns. As most good outplacement services offer clinical psychological support, this is the best way to help the employee overcome this difficult time and remain positive during the whole process of finding a new job. Everyone needs support, and as a responsible employer, you always be there to provide it.

2. Outplacement Only Benefits Departing Employees

Many people have a conception that outplacement is a service only for departing employees. However, what business leaders don’t know is the psychological impact layoffs can have on remaining employees. Without implementing outplacement, remaining employees will constantly have thoughts of “when will it be me next?” and “does my employer care about me?” running through their minds.

If employees view management as one that does not genuinely care about employees, then engagement levels and productivity will drop. Research from the Harvard Business Review found that businesses ultimately saw a 41% decline in job satisfaction and 36% drop in organisational commitment from surviving employees after a redundancy. Outplacement is the perfect service for business leaders to negate this from happening.

3. The ROI is Not Worth the Hassle

To the unaware individual, spending money on an outplacement programme may seem like a waste of financial resources. However, what they don’t understand is the potential long-term financial impacts poorly handled layoffs can have on the company. Every stakeholder is watching during restructuring, meaning one mistake can be costly for your business. If your employer brand is damaged, it could lead to a 28% higher turnover rate and difficulties attracting talent in the future.

Organisations are also at risk of retaliatory lawsuits, especially if the departing employee feels unfairly treated or bitter about the situation. Outplacement can protect you from this potential financial headache and save you from future problems.  

4. Both Parties Should Select Cash Over Outplacement Services

If you asked both the employer and employee to pick between outplacement services or cash, it wouldn’t come as a surprise if both picked the latter. However, both parties would be wrong here and incredibly short-sighted. While cash payment may seem like the best choice, it is only a short-term solution. Displaced employees will only have a temporary fix for their loss of income and could become frustrated during the job search process with no assistance. This in turn will cause resentment towards the former employer as they will feel a lack of support, bringing us back to the problem of damage to your employer brand and potential litigation.

The best way to prevent any of this is to settle an employee into a new position. With Outplacement, employees are transitioned to new opportunities and find new jobs on average 2.67% faster according to the American Psychological Associations.

5. My In-House HR Team Can Handle the Situation

Many business leaders believe that their in-house HR team has enough knowledge and resources to handle large restructuring programmes. The fact is that most HR teams are not professionals at handling the whole process to ensure layoffs are smooth. There have been instances where laid-off employees have thrown objects or caused a storm when being told they are no longer needed. Many HR will not know how to deal with the situation and it’s not their fault as many are properly trained for the situation.

Outplacement consultants are trained to handle these situations and it is something they do on a daily basis. Having a professional team there to plan out the process and minimise these scenarios from occurring is key to preventing trouble.

6. Younger Generations Don’t Need Help Transitioning to New Opportunities

The belief that the younger generation of workers can just get back on their feet and find a new job easily is a mistaken belief. Individuals that are still in the early stages of their career will feel lost and need support. Providing outplacement should not be based on the person’s age or level of experience, as at every level, working professionals will need different types of assistance.

Although the younger generation may be more tech-savvy, their lack of experience will mean they have less expertise ns building a brand for themselves, connecting to industry leaders, and creating an attractive profile for employers. Young professionals need outplacement services just as much as high-ranking and seasoned professionals.

Want to implement Outplacement into your business strategy? Learn more about the benefits now, by contacting our team of professionals!

Related Articles


Links International is an industry leader in innovative HR outsourcing with services such as payroll outsourcingvisa applicationPEO/EOR Secondmentoutplacementrecruitment and more! Contact us for more information on how we can help leverage your HR function.