In 2013, CareerSupport365 conducted marketing research that gauged the opinions of 492 people who lost their jobs across Sydney, Vancouver and Los Angeles.
What we found was not a surprise, but a reinforcement of some key principles.
Here are two of our findings:
- 88 percent of people were still likely to talk poorly about their employer after 13 weeks of losing a job.
- Almost 9 in 10 people were likely to feel far more positive towards their former employer had they been exited in a dignified manner – which included career transition support/outplacement.
When you Google ‘wrongful dismissal’ the search yields a raft of links to fee-upon-success law firms and other resources.
One prominent employment law firm promotes the settlement of $100,000 – albeit out of court – for an illegal sacking! And with that amount of money touted, the chances are high that many disgruntled employees will try on a case like this, especially when the law firm charges a fee-on-results basis.
Let’s assume your employer is required to answer a case of wrongful dismissal. The cost of running a case – whether you believe your company is right or not – can run in to the many thousands of dollars. As the following example below shows:
|Legal firm briefing (Partner and Associate for half a day)||$ 4,000|
|Employer time spent answering each case (team)||$10,000|
|Mediation cost||$ 2,000|
|Settlement of 3 month’s pay (at $50,000 Remuneration)||$12,500|
|Other side legal costs||$ 4,000|
A commercially savvy Head of HR recently shared that his employer frequently offers people who are being managed out, 4 months’ pay and an outplacement package.
In the above case, instead of running the case, his employer would pay $16,667 plus a career support/outplacement package. A saving of about 50 percent!
The outplacement package goes beyond the cash settlement, helping to support the exiting employee’s dignity and underpin future employment opportunities. Aside from reducing legal fees and inconveniently tying up staff time on the matter, the employer might not see any direct impact on their bottom line – but the indirect impact on the integrity of the employer brand and reputation are significant!
At CareerSupport365 we take the view that anyone CAN and SHOULD be given career transition support – whether that person has been laid off or managed out for performance reasons.
Our packages are proven to get people productive and focussed on getting on with their lives and their careers!
CareerSupport365 packages start from as little as $825 for 365 days’ support/access. Find out more about our innovative outplacement packages here.
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Learn more about Greg Weiss here.