Outplacement service has recently caught the wind among companies across industries and markets. While many have acknowledged the benefits of this service and implemented it in their company policy, there are certain sections who are still not very informed about this initiative. There are a lot of misconceptions about this service which has led to certain setbacks. Hence we present what outplacement actually means and what are its benefits.
Outplacement can be defined as an employer sponsored benefit that is provided to a certain segment of employees who have been terminated from their service due a strategic business requirement. It can be due to closure of a business wing, profitability issues or any other company related strategic initiative. There are many advantages of this service both at the employer and the employee end which are discussed as bellow.
- One thing needs to be kept in mind that the displaced employees have contributed to the company’s growth at a certain point of time. So taking a decision of terminating them suddenly become a critical standpoint. Moreover, the level of complexity increases when some of the employees have been associated with the brand for a long period of time. It might send out a negative impression for the brand. Providing outplacement service helps in maintaining the healthy relationship with the terminated employees without creating unnecessary complexity.
- Just a severance package is not always enough to satisfy an employee. The grievance related to termination may result in lawsuits being filed against the company. This service can minimize the tendency of this scenario to a great extent. It also shows the thoughtfulness of the employers even after separation.
- This type of sudden and mass layoffs often create a massive panic wave among the existing employees. Some people even have the tendency to jump the ship even at the slightest realization of a critical condition. This situation can be difficult to handle and if not dealt with proper care then can result in severe conditions. When the existing staffs see the outplacement efforts of the company, they tend to think the situation from a logical point of view that contributes towards maintaining the productivity.
- It helps in creating a positive brand image in terms of employee management which can be utilized for attracting talent at the time of need. It adds to the brand value in a positive manner.
From the employee perspective, the benefits are pretty straight forward.
- It is a structured way to look for new career development opportunities with proper guidance in terms of resume structuring, industry opportunities and so on.
- Sudden unemployment is a difficult situation to handle. Looking out for a job on its own is a lengthy and uncertain process. With guidance coming in through this service it might be effective in finding another employment opportunity faster.
Lastly, with this service, the individual is likely to face lesser career related challenges in coming times which becomes a bonus.