Planning an Effective Outplacement Strategy
Why use outplacement and things to consider along the way
By: Frank Russell | June 27, 2018
Even with near full employment, organizations today are faced with business challenges that may require shifting priorities and significant change . Given the recent volatility in trade, stock markets, and politics, organizations will need to reshape and retool for the future to compete globally.
Another challenge includes an aging workforce population that is planning for retirement. Within the next few years a record number of employees will reach retirement age and many are not prepared financially or mentally for this new phase of their life. If employees postpone their retirement decisions because of uncertainty in the market or a lack of savings and preparation, organizations will be faced with even more difficulties.
The stark reality is that organizations today need to plan for ways to help current employees exit the organization as gracefully and positively as possible.
Failure to have an adequate plan can mean increased risk and liability. These risks can include:
- Damage to an organization’s image and brand
- Threatened lawsuits, settlements, and penalties
- Increased SUTA rates (State Unemployment Tax Assessment)
- Decreased motivation and productivity from the remaining team members
- Increased turnover of the remaining team
Today’s most valuable workers (the ones you want to keep) are constantly being bombarded by competitors and recruiters to jump ship. How you take care of your transitioning employees can become a prime factor in these employees’ decision to stay or leave.
In our outplacement and consultation practice we are often asked to help organizations deal with specific reduction in force or site closure events. While we are eager to help at that critical moment of need, we often recommend that organizations be prepared to take a more strategic view.
Without an effective transition plan as part of this overall strategic reshaping effort, organizations can be blindsided by some of the risks mentioned above and be in a reactive rather than a proactive mode.
Can Technology and Social Media Help Facilitate Change?
Many organizations are still using outdated resources and traditional outplacement partners to help with their transition strategies even though they may have significantly modernized their own recruitment and selection processes.
Today, recruiters, placement firms, and organizations with cloud-based talent management systems are leveraging technology with significant returns in terms of results and cost savings. Our research indicates it’s time for a new approach for transition strategies that can use the latest technology and social media advances.