Why Offering Outplacement Services at Your Business Is Good Business

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  • Why Offering Outplacement Services at Your Business Is Good Business

    For better or worse, periodic downsizing has become standard practice in the corporate sector.

    To stay competitive in todays business world, many companies, even highly successful ones,

    will be forced to substantially reduce their workforce at one time or another. This is a pivotal

    stage in the lifespan of any organization, signaling either a vital new beginning or the initial

    phase of an irreversible decline. Which direction a company will take depends to a large extent

    on its handling of a reduction in force (RIF). To help employees cope with the layoff process, a

    lot of organizations turn to professional outplacement services, which provide terminated

    workers with a variety of training programs to aid them in their transition to a new career; these

    services can include resume writing instruction, job interview preparation and related career-

    oriented assistance. Aside from providing much-needed counseling to laid-off employees, an

    outplacement service confers several benefits to the reorganizing company; well take a look at

    these advantages below.

    Protects company reputation

    Theres no doubt about it: Getting laid off tends to be a terrible experience, and most people can

    sympathize with the trauma of losing ones job. Companies that are perceived as insensitive to

    the needs of their terminated employees can earn a poor reputationone that could easily spread

    across the Internet. This may discourage skilled individuals from applying at the company; it

    could even inspire a significant number of consumers to take their business elsewhere. However,

    companies can at least partly deflect these criticisms by using an outplacement service to assist

    laid-off workers during their transition period. Making these services available also presents an

    attractive benefit to current and future personnel, who will feel secure knowing that the company

    has programs in place to ease the blow of job termination.

    Decreases legal liability and fallout from disgruntled employees

    The majority of terminated employees manage to cope with the news in a reasonable fashion, but

    some workers, feeling wronged, decide to pursue legal action. This has the potential to embroil

    their former employer in a lengthy court battle, one that could rack up substantial legal bills,

    even if the charges have no merit. Other downsized workers may elect to reveal valuable

    company secrets to competitors in the industry. In many cases, the trigger for these damaging

    actions is the pain and stress associated with sudden termination. Outplacement programs

    provide a way for the exiting employee to look to the future versus look back with resentment

    and allow the company to form a mutually beneficial partnership with their former employee.

    Lowers survivor guilt

  • Its hardly controversial to say that layoffs are unpleasant for those workers who receive their

    termination papers, but many in the business community fail to understand that downsizing can

    also damage the morale of surviving employees. Workers may feel guilt over having evaded

    cutbacks that left others jobless, especially in cases where the terminated employees were valued

    friends and associates. Outplacement firms can alleviate this tendency by helping laid-off

    personnel get back on their feet.

    Reduces company unemployment payments

    Given that employers must shoulder the burden of unemployment taxes, its in their best interest

    to help downsized workers find another job as soon as possible. Outplacement companies like

    Careerminds aid this process considerably by helping participants sharpen their job-hunting


    Bio: Headquartered in Newark, Delaware, Careerminds provides scalable, strategic solutions to

    organizations seeking affordable virtual outplacement services. Using an advanced proprietary

    technology platform that delivers state-of-the-art online career transition services, we provide a

    high-tech and high-touch blend of career transition education to help displaced workers reenter

    the workforce quickly. Our clients range from small companies to the Fortune 500.

    Summary: Retaining an outplacement service to assist recently terminated employees can

    provide businesses with several vital benefits, such as preserving worker morale, lowering legal

    liability, and protecting the companys reputation.


    1. http://careerminds.com/blog/what-is-outplacement-and-why-should-i-offer-it/ (Feb.

    19, 2014)

    2. http://careerminds.com/blog/virtual-outplacement-does-involve-humans-we-promise/

    (Feb. 19, 2014)

    3. http://careerminds.com/solutions/benefits/ (Feb. 19, 2014)

    4. http://careerminds.com/blog/the-chelsea-welch-case-and-your-employer-brand/ (Feb.

    19, 2014)

    5. http://careerminds.com/blog/the-roi-of-outplacement-2-0/ (Feb. 19, 2014)

    6. http://www.nytimes.com/2011/10/20/business/smallbusiness/managing-

    unemployment-premiums-in-a-time-of-joblessness.html (Feb. 19, 2014)

    7. http://careerminds.com/blog/outplacement-and-employer-branding/ (Feb. 19, 2014)