Outplacement ROI
The business case for 'high touch' outplacement
Return on investment in 6 steps
It may seem counterintuitive to invest in the welfare of ex-employees, particularly when the reason for redundancies is to cut costs. However, there is growing recognition that 'high touch' outplacement services - expert support in choosing and finding new employment for employees who have been made redundant - can deliver a strong return on investment for employers, at a difficult time.
In the past five years, the quality of outplacement services has eroded and become commoditised. But research shows that a high touch outplacement programme is 'an investment in morale, productivity and profits'. Here's the business case for partnering with a high touch outplacement provider to minimise the impact of downsizing, across the board.
1. Increase the productivity of 'survivors'
When redundancies are made, the morale of remaining employees can decrease dramatically due to a rise in workload, loyalty towards lost colleagues and fear of future job cuts. An outplacement programme which positively impacts the wellbeing of leavers and their ability to find new employment will improve morale back in the business. The result is greater productivity and more discretionary effort from 'survivors'.
2. Reduce employee turnover and attrition
From the moment rumours of redundancy start to the transition period after leavers have departed, employee attrition is likely to rise as employees leave a perceived 'high risk workplace' or 'unfair employer'. Typically turnover is highest among those you least wish to lose. A high touch outplacement programme earns back credibility and trust and calms the flight of talented employees.
3. Reduce the likelihood of expensive litigation
Employees who feel the company has treated them unfairly during the redundancy process are increasingly likely to settle their grievance in a tribunal - and rulings are favouring employees more often. An outplacement service can reduce perceptions of mistreatment and decrease the likelihood of a tribunal from 8.1% to 2.8%1.
4. Keep your brand intact
Supporting departing employees is an important part of your overall employer and consumer brand. The company that notified its people of redundancies by text message caused long term damage to the public face of the business - as well as disenfranchising employees. Doing the right thing is more than just good PR - it's long term business thinking that will stand the test of time. Likewise 'skimping' on such a high-stake initiative will almost always prove a poor investment.
5. Remove distractions from managers
Redundancies naturally coincide with increased tension and pressure on a business or function. Outplacement services can help alleviate the stress and time pressure faced by managers, leaving them better able to manage the remaining team and concentrate on the future of the business.
6. Reduce absenteeism
Absenteeism can rise significantly at redundancy time as a response to perceived unfair treatment of former colleagues. An outplacement programme which is well-received by leavers will resonate across the whole business and can reduce absenteeism after downsizing by 33%1.
What is 'high touch' outplacement?
High touch outplacement places the individual at the heart of the service, rather than merely 'processing' them through a predetermined path of theory-based workshops which leave the individual asking themselves 'so how does this affect me?'
High touch outplacement does not have a set number of meetings or time duration therefore it is there for people - when they need it the most!
High touch outplacement at The Connor Consultancy
The Connor Consultancy has a reputation for outplacement services that are industry specific, practical and based on common sense. We have the unique distinction of combining the skill sets of front-line recruiters, trainers and industry practitioners together with extensive occupational counselling experience. These skills mean we are ideally placed to help people face the challenges of the current job market, whether finding a new role, looking at changing career or setting up their own business.
Key differentiators
- Our experience means that we are able to provide insights from both sides of the fence - as recruiters and as hiring managers.
- Our service is available for as long as the individual needs it, with no maximum number of meetings or fixed time duration.
- Our network of over 400 decision makers in the South East means we are able to directly place people within our network.
- We provide the individuals with access to vital resources including a competitive intelligence database which provides an "unfair advantage" when it comes to targeting potential employers.
- Finally, we are personable, flexible and accountable!
