Empowering Employees: The Role of Outplacement in Talent Management

Empowering Employees: The Role of Outplacement in Talent Management

Companies are constantly seeking ways to attract, retain, and develop top talent. However, even the most successful organisations face the challenge of managing workforce transitions, whether due to restructuring, mergers, or economic downturns.

This is where outplacement services – support provided by an employer to help employees transition to new jobs after a layoff or termination – come into play, offering a powerful tool for companies to support their employees during times of change while simultaneously strengthening their talent management and retention strategies.

The Problem: Losing Talent and Damaging Brand Reputation

When companies face the difficult decision to let go of employees, they risk losing valuable talent and damaging their brand reputation.

A study by the Harvard Business Review found that 48% of employees would consider leaving their current employer if they were offered a comparable job with better benefits, including outplacement services (Keller & Meaney, 2017). Furthermore, another survey revealed that 69% of job seekers would be less likely to apply to a company that had recently laid off employees without providing outplacement support (Career Star Group, 2020).

The story of Sarah, a highly skilled marketing professional, illustrates the impact of outplacement on talent retention. When Sarah’s company underwent a merger, her position was eliminated. However, the company offered her comprehensive outplacement services through Career365, including career coaching, resume writing assistance, and networking opportunities. Through this support, Sarah quickly landed a new role at a company she admired, but not in competition with her former employer. Had her former employer not provided outplacement, they would have lost a valuable employee to a competitor and risked damaging their reputation in the industry.

The Solution: Outplacement Services as a Key Talent Management Strategy

Outplacement services provide a solution to the challenges of workforce transitions by empowering employees and demonstrating a company’s commitment to their well-being.

A study by the Aberdeen Group found that companies offering outplacement services experienced a 22% increase in employee engagement and a 17% reduction in turnover (Aberdeen Group, 2017). Moreover, companies that provided outplacement support reported a 60% faster time-to-hire for open positions compared to those that did not (RiseSmart, 2019).

Outplacement services can also help companies maintain a positive employer brand, even during difficult times.

One survey we conducted found that 87% of HR professionals believe that providing outplacement services enhances their company’s reputation (Career365, 2019). This positive reputation can attract top talent and foster a culture of trust and loyalty among current employees, leading to increased productivity and better overall performance.

Consider the example of a global technology company, which faced the challenge of downsising due to market pressures. Rather than simply letting go of employees, they partnered with Career365 to offer comprehensive career transition support to impacted employees. This approach not only helped affected employees find new opportunities quickly but also demonstrated the company’s commitment to its people. As a result, they maintained a strong employer brand. In reporting to their Board, they found they experienced a 25% lower turnover rate among its remaining workforce compared to industry averages.

The Advantage: Strengthening Employee Retention and Engagement

Investing in outplacement services not only benefits employees in transition but also strengthens a company’s overall talent management and retention strategies.

A study by the Society for Human Resource Management (SHRM) found that companies with strong employee retention programs, including outplacement services, experienced a 38% increase in employee engagement and a 25% reduction in turnover costs (SHRM, 2018).

Furthermore, outplacement services can foster a culture of lifelong learning and development, encouraging employees to continuously enhance their skills and adapt to changing market demands.

This commitment to employee growth not only benefits individual workers but also positions companies as employers of choice in their industries.

The story of John, a long-time employee at a large multi-division financial services firm, showcases the impact of outplacement on retention. When John’s department was restructured, he was offered the choice between a severance package or a combination of severance and outplacement services through Career365. John chose the latter, which included skills training and career coaching. Through this support, John identified new opportunities within his own company and transitioned to a different division. By investing in John’s career development, the company retained a loyal and talented employee while demonstrating its commitment to its people.

Empowering Employees and Strengthening Talent Management

In today’s competitive business landscape, companies must prioritise talent management and employee retention to succeed. Outplacement services provide a powerful tool for organisations to support their employees during times of transition while simultaneously strengthening their employer brand and fostering a culture of trust and loyalty.

By investing in outplacement, companies demonstrate their commitment to their people, enhance their reputation, and attract top talent.

Moreover, outplacement services contribute to a culture of lifelong learning and development, empowering employees to adapt to changing market demands and positioning companies as employers of choice.

As the stories of Sarah, the global technology company, and John illustrate, outplacement services play a crucial role in effective talent management and retention strategies. HR professionals and C-suite executives should strongly consider implementing outplacement services in their organisations to navigate workforce transitions with greater ease, retain valuable talent, and build a strong foundation for long-term success.

References:
Aberdeen Group. (2017). Outplacement: A strategic imperative for organisational performance.

Career Star Group. (2020). Global Outplacement Survey.

Keller, S., & Meaney, M. (2017). Attracting and retaining the right talent. Harvard Business Review.

Career365. (2019). Survey among 100 HR Leaders in Australia on the impact of outplacement on their employer brand.

Society for Human Resource Management (SHRM). (2018). Employee retention: The real cost of losing an employee.

Photo taken from: https://secretsydney.com/day-trips-sydney/

Do you need help with supporting your employees?

Want to support your employees through restructures and redundancy with effective onboarding, stay interviews, offboarding, and outplacement programs? Get in touch with me today to organise a 1-1 call to see how Career365 can support you and your team. Click here for more information.

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Greg Weiss

Greg Weiss is the founder and director of Career365 and Australia’s leading career coach. Greg has coached well over a thousand people from recent graduates to CEOs as they pivot, re-launch and accelerate their careers. He is the author of three practical books and the creator of three online courses: “Career Clarity. How to find career fulfillment”; “Career Networking. How to unlock the hidden job market”; and “Career Success. How to succeed in your new job”.

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