Outplacement services have been around for quite some time, but perhaps this is your first experience with one? When employers make the difficult decision to let employees go, whether through a corporate downsizing process or layoffs due to industry fluctuations in labor needs, they have the option of using an outplacement services provider. This third-party agency supports employees who are separating from the company, to help increase the likelihood that they will be placed in a new job quickly. At the same time outplacement providers give the organization the support it needs to successfully transition employees out of the company to minimize costs and risk.
Ready to learn more about outplacement services and what they can do for you? Here are five quick facts to consider:
Outplacement services are not one-size-fits-all
You may be surprised that an outplacement service firm like VelvetJobs will build a custom-designed outplacement plan for your organization. From helping your human resource department create a plan to communicate the layoff to assisting departing employees with resumes and interview skills — the entire partnership is built upon the goals of your company. Our knowledgeable executives have the ability to share insight on best practices so that your company has positive results.
Outplacement services extend good will towards employees
According to research that appears in MIT Sloan’s Management Review, “Laid-off employees and survivors must trust that management is concerned with their needs… so they feel in control of their destiny, even if it involves layoffs.” An outplacement service can serve to provide the support that can foster good will for all employees who are impacted by a layoff and the community as a whole.
Outplacement services can dramatically reduce legal risks
Each year, there are in increasing number of wrongful termination lawsuits that are based on more than 20 legal grounds, under current employment laws. In over half of these cases, former employees come out the winners, costing companies hundreds of thousands in settlements, legal fees, and fines. Outplacement firms can help to crack down on these cases by helping employees obtain work before the end of their employment term, and employment experts can ensure the company navigates this terrain well-informed of any potential risks.
Outplacement services help cut down on unemployment claims
Another fact about outplacement services is that it can reduce and even prevent the requirement to pay out unemployment claims. Companies are continually facing the threat of paying out thousands in unemployment claims, on top of what they already pay out in unemployment insurance premiums. Outplacement firms give employees that bridge that takes them to another job so they don't have to resort to filing a claim in the first place.
Outplacement services can be highly affordable
Your company may be amazed at how affordable outplacement services like VelvetJobs can be, especially with the wealth of services offered. Our programs cost as little as $500 per employee, which is vastly lower than other firms that charge up to $10,000 per employee. We are able to arrange for quality services based on a number of key innovations. We pass our savings onto employers.
When deciding on the best outplacement services to use for your company, be sure to check the facts before committing. A reputable outplacement firm will provide detailed information about what to expect from this arrangement, with everything up front.