Top 3 Reasons the Best HR teams Use Outplacement

The Risks of Not Using Outplacement

Layoffs can be devastating for employees, but what some companies don’t know is that it can also lead to severe consequences for them if not carried out properly. Termination can be an incredibly stressful time for HR teams, as poor execution can result in:

  • Reduced Employee Engagement
  • Legal Issues
  • Bad Publicity
  • Brand Erosion
  • Higher Turnover Rates

As many businesses are restructuring during this economic downturn, layoffs are now becoming more prevalent. However, the best and most experienced HR teams are using outplacement to avoid drops in productivity and further fallout of poorly handled termination.

Top 3 Reasons the Best HR Use Outplacement

1. Prevents Drama

Companies can get into a big PR disaster if there is a commotion on the day of termination. Recently in HK, iCable was on the news for all the wrong reasons due to their handling of terminating their China news team. Additional employees resigned in protest to the mismanagement of the situation and videos circulated over the internet, exposing the company to unwanted media attention.

With a well-known organisation like iCable getting into such a mess, it proves that no company is safe from the troubles that can come with termination. If iCable planned their process better and showed genuine care to displaced employees with an outplacement programme they would not have been hit by this big PR storm.    

2. Responsible Employer – Transition Employees to New Opportunities

Sometimes companies need to make sweeping changes to improve business operations which can result in certain employees falling victim to being laid off. Great companies that sincerely care for their workers should offer them help and not leave them out in the blue with no assistance. Being terminated is a very difficult time for employees and by being a responsible employer you should help transition them to new opportunities.

By helping employees improve their personal profiles and providing professional help to find them new opportunities, their resentment will turn into gratitude. It is normal for people’s emotions to run high and act out of character after hearing bad news, however, if you offer them transitional support displaced employees will be appreciative.

3. Protects & Raises Your Employer Brand

Being on the news for the wrong reasons can destroy your hard-built employer branding in an instant. It takes a lot of effort to build a strong company image but requires very little to demolish it.

Your reputation as an employer dictates the level of talent your business can attract, which ultimately influences the level of creativity and productivity produced by your workforce. If your business cannot attract the best talent it will be detrimental to the long-term success of the organisation. Outplacement helps shield your brand and will even raise the profile of your organisation to one that looks after its employees.

How Do I Select the Right Outplacement Vendor?

Not all outplacement vendors are the same and the level of support can be very different. The services provided can range from termination planning, career counselling, resume development, interview preparation, connection to new opportunities, clinical psychologist support, or all of the above. When selecting a vendor there are two questions HR/business leaders must ask:

  • How is the vendor supporting your employees?
  • How are they doing to protect your company’s reputation/brand?

The very best providers differentiate themselves by ensuring the whole termination process is smooth and go the extra mile to support both employees and employers throughout the process. HR teams particularly appreciate it when the outplacement team is present on the day of termination while candidates enjoy receiving professional coaching.

Choosing a provider that is there for the whole process and can provide complete support and guidance for the company and employee makes for the best outplacement programme!

Links International Outplacement Case Study – Organisation Moving Operations Back to HQ

A large international education organisation was seeking an outplacement service provider as they were centralising its back-office functions back to their headquarters in Europe, which would result in 75 employees in HK being made redundant.

The organisation wanted to be a responsible employer and help transition the displaced employees to new opportunities. They wanted to maintain internal morale by demonstrating their appreciation for everyone within the organisation despite the difficult situation.

As a result, Links was able to connect 97% of participants with a new opportunity! Participants in the programme were particularly impressed with Links’ career coaches and their practical advice. The whole process was smooth and drama-free with both sides expressing positivity for the outplacement service experience and would recommend it to any other organisation facing a similar situation.

If you would like to learn more about Links International’s outplacement services, contact our professional team now!

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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.

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