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.