Is there an Enhanced Value in Outplacement during a Recession?

Outplacement is not only desirable during a recession but essential. A recession means a reduction in workforce (RIF) for many employers, but a shrinking employment market means it will be difficult for redundant staff to find alternative employment. Think of outplacement as care, advice and support, something everyone needs in their lives when they encounter a problem or crisis like redundancy. How much worse is this during a recession, making outplacement even more vital for staff who are struggling to find new employment?

The negative impact on an employer who makes redundancies during a recession is severe. Most observers won’t view this as a means necessary to ensure the survival of the business but as a further kick in the teeth to staff who are probably already facing zero or minimal pay rises and a rise in the cost of living.

Redundances can have an adverse reputational fallout and a long-term negative impact on a company brand, made worse by the landscape of a recession. Outplacement services minimise this and allow employees to move forward with dignity and confidence, equipping them with skills to navigate the job market at what is a competitive time. It reflects well on the organisation or business as when the recession ends and the economy recovers, you will need to hire new staff. Turning a negative situation like redundancy into a positive one with the support of outplacement services is also the ultimate marketing opportunity, but social responsibility should always be the key driver in this situation.

Softening the Blow of Redundancy during a Recession

Outplacement services are never more helpful than during a recession when employees are hit with the double whammy of redundancy plus a restricted or stagnant jobs market. Offering outplacement services to support them at this crucial time will make all the difference. Here’s how.

• Many employees will look for a similar role in the job market, but these opportunities may shrink or be no longer available, complicating the search process. Outplacement services can help with refining CVs, professional profiles and interview techniques
• Outplacement helps employees consider alternatives like a return to further education, retraining for a new role or other options like self-employment or starting their own business
• Outplacement takes a holistic view, so it focuses on skillsets and transferable skills, enabling staff to pivot their career into a different industry
• Advice on upskilling can help move employees forward and sideways so they have a larger platform from which to transition to a different role
• Staff who have not changed employment for a long time will benefit from updating their resume, understanding new networking opportunities and job search counselling. There will be new assessment tools and potential with social media presence and a LinkedIn profile offering leverage they may not have used on the last occasion they looked for a new job
• Staff are treated with dignity and respect and exit the business positively. Around three-quarters of redundant staff will leave a company with a positive outlook towards their former employer if outplacement services are offered as part of their settlement package
• Letting exiting staff choose the features of the package they want to suit their needs best helps cover the requirements of a wide range and level of employees and is always well received rather than a ‘one size fits all’ approach

Outplacement services empower workers who are about to be laid off. Losing a job is distressing, demoralising and a period of real anxiety and stress, particularly for older workers and/or staff who have been in post for many years. This is all exacerbated by a recession with real fears that it will be many months before alternative employment can be found and worries over income. Outplacement speeds up career transition and makes life easier for redundant staff and their former employer.

How Does Outplacement Help the Staff who Remain?

Despite reassurances, the remaining staff may be fearful that they may be next to lose their jobs. It creates a culture of defensiveness, negativity and low morale and may trigger employee departure due to fears over job security.

An outplacement service provider can provide support and reassurance for the employers that remain, as well as those leaving, to help maintain productivity. Post-change workshops or 1:1 coaching can help motivate staff and get them engaged again. The remaining team feels valued and can speak openly and confidently to an impartial outplacement company in a way that they would not be able to do directly to their employer. Outplacement helps maintain good company culture, retaining and attracting talent in the future. It provides value to all employees.

Outplacement can support with confidential counselling, which may be remote or face-to-face and group workshops or collective team-building activities.

We offer an extensive range of outplacement services that can be crafted to suit all types of businesses and staff numbers with experience in various sectors and industries. We also offer dedicated redeployment, change, resilience, and pre-retirement services.

Please speak to one of our outplacement experts today and discover how to manage redundancies in your company or organisation.