Company Needs an Outplacement Scheme: Many companies are adopting an outplacement scheme. This is evidenced by the recent industry statistics, which estimate the market size of outplacement services in 2022 to be at $1.733 billion. By 2030, the industry size is expected to hit $3.75 billion. Outplacement services offer companies several benefits, making it the go-to option when an organization wants to lay off part of its workforce. So, why is your organization not using an outplacement scheme yet? Here are a few compelling reasons why you should get the help of outplacement professionals.
Company Needs an Outplacement Scheme- What is Outplacement?
Outplacement services give laid-off employees a chance to resettle by offering them other job opportunities. The employee may also be leaving their current position voluntarily and searching for a new role.
Also referred to as “career transition,” outplacement services give employees the necessary support to make their career transition. This includes job search and career coaching.
Reasons You Need an Outplacement Scheme
An outplacement scheme benefits the organization as much as it does the employee. Here are seven reasons why you should have an outplacement scheme in place.
It Helps Your Employees Stay Ahead of Current Market Trends
Exiting employees often enter a different career world than they’d experienced when job hunting. Instead of throwing them into the deep end, outplacement schemes retrain them on current technological and industry advancements, thus making them better prepared for the job market.
It Assists in Career Transition
Outplacement services offer effective tools to help exiting employees with their job search. For instance, some organizations have offices for redundant employees to search and retrain themselves for future employment.
Therefore, the exiting employees feel more motivated during the application process for new roles.
It Helps with Redundancy
Handling redundancy and giving redundancy news are some of the hardest things for employers. You have to provide accurate information and adequate support after delivering the news.
Outplacement services have the right personnel to coach HR leaders on handling redundancy effectively with the best interests of your employees at heart.
It Helps Give Employees Financial Support
Most employees are worried about finances when they’re given redundancy news. An outplacement scheme takes that worry away by offering regulatory requirements such as redundancy pay and providing a helpful guide for employees to transition from your company.
It Protects Your Brand
Poorly handled redundancy can damage supplier, client, investor, and other key stakeholder relationships. Your organization should always appear aligned with its values, even when laying off its workforce.
It Increases the Productivity of the Remaining Employees
Redundancies are often accompanied by a drop in morale among remaining employees. They often spend unproductive hours looking for alternative employment opportunities in fear of future job cuts.
However, using outplacement schemes shows them that the organization cares about their career transitions, boosting morale and reversing any negative trends.
It Reduces Employee Turnover
Company Needs an Outplacement Scheme: Gallop estimates that the cost of employee turnover may range between 50% to 200% of an employee’s annual remuneration. These costs skyrocket as turnover increases after downsizing.
An outplacement scheme helps reduce turnover, keeping critical talent in-house and reducing overall employee turnover costs.
Get the Help of Professional Outplacement Services
For the best outplacement scheme, get the help of professional outplacement services today.