Why do organisations provide outplacement?
Employer Brand Protection
Platforms such as Glassdoor and the prolific rise of social media, means that it is very easy for an organisation’s brand reputation to be damaged if they mismanage change processes. While redundancies are never easy to manage, providing valuable support to departing employees decreases the risk of reputational damage significantly.
A former employee who remains out of work for an extended period can be a future problem for an organisation as frustration with their job search can result in them blaming their previous employer for their situation. Giving departing employees the opportunity to focus on positive next steps ensures they feel supported and means they are less likely to seek redress against the organisation.
When organisations manage change within their business, the impact is not just on those directly affected. Employees that remain within the organisation look carefully to see how the organisation has treated their colleagues and friends who have left. Organisations that can demonstrate that they have supported those employees are in a much better place to encourage and protect engagement and productivity of the remaining employees.
Effective Change Management
While the message of redundancy is always difficult, being able to communicate and deliver highly effective support to employees can help manage a smooth transition through Consultation periods and beyond.