Outplacement Maintains a Responsible External Image
Negative reactions to termination can affect the company ’ s image for years . Employees who are treated fairly when terminated do not usually speak in public or to various forms of media about how bad the company was to them . Outplacement reinforces a positive view of the company by employees and the community .
Outplacement Impacts Retention and Recruiting
The way separations are handled can impact retention rates and recruiting efforts . If handled poorly , valuable employees may be more receptive to opportunities outside your organization . And what former employees and their families say about your organization may affect your recruiting efforts . Outplacement supports your efforts to be the employer of choice in your community .
Outplacement Preserves the Goodwill of Terminated Employees
Maintaining excellent relationships with terminated employees , who may later place in positions within a client company or another company which can affect future business of the company , ensures that future business dealings with them are positive .
Outplacement Facilitates Manpower and Succession Planning
Outplacement can free management to make decisions in a timelier manner about individuals who are “ bottlenecking ” the organization and blocking “ fast trackers .”
Outplacement Improves Morale and Productivity
Lack of success in an organization is a shared responsibility . Providing Outplacement shows that the company has a “ conscience ” and demonstrates to remaining employees that they are valued .
Outplacement May Reduce Unemployment Insurance Rates
Unemployment insurance rates are based on the organization ’ s policies and unemployment history . Since employees with outplacement services generally get placed more quickly and remain in their new position longer , rates can be positively affected ; offsetting part of the cost of outplacement .
Outplacement Could Be a Negotiable Severance Benefit
Some organizations use outplacement as a bargaining chip during an individual severance negotiation . Because it is a tangible benefit of great value , separating employees may choose outplacement in lieu of other ( more costly ) severance benefits .