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Benefits of Outplacement Services

Outplacement as a Service:

Outplacement is a service. It is a benefit that companies offer their displaced workers, as a stand-alone benefit or part of a separation package that includes severance pay, vacation pay, health insurance coverage and other benefits.
Literally, outplacement means "placed out of the organization." Companies hire an outside firm to work with the displaced employees to help them become employed again quickly. Outplacement specialists are an external neutral force during an emotional time, when the displaced employee may feel anger and resentment toward their former employer. The outplacement professional's neutrality, compassion and expertise assist the employee in shifting their focus onward.

How can outplacement services help my company?

The value of providing an outplacement benefit can be directly measured. It can impact the following areas: The Bottom Line: budgeting for outplacement as part of the separation package makes good business sense. It decreases the amount of time workers obtain unemployment pay, and reduces the potential for lawsuits. Reputation and Public Image: in an age where companies' reputations can easily be tarnished, the value of being viewed as a good place to work is important, as is the image presented to shareholders, customers, and vendors. Outplacement helps promote the company’s image as a good corporate citizen, and decreases the cost of turnover among remaining employees. Providing outplacement demonstrates to the community that the company values its human capital. Decrease the Potential for Lawsuits: angry people sue. Offering outplacement can diminish the resentment, hurt and anger many laid off workers feel

Preserve Morale and Productivity of the Remaining Workers: "It could have been me." Once the loyalty contract is broken between employers and employees, the remaining employers look to their displaced co-workers to see how they are being treated. Preserve the Dignity of the Displaced Workers: knowing that the company has provided a free and valuable service to assist the displaced employee become reemployed quickly can help preserve their self-esteem. Enhance the Ability of the Displaced Workers to Become Re-Employed Quickly: studies have shown that outplaced employees find work quicker, and often even at a higher salary when they have the benefit of career transition services.

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