The Business Case for Outplacement


business case for outplacementDuring periods of such unprecedented economic uncertainty, there is little doubt that most progressive organisations and HR Professionals, recognise the importance of providing the best support they can to employees in the event of organisational change and in particular, redundancies.

The cost savings which often underpin organisational change however, often render the business case for a service like outplacement support and the investment required, hard to make for HR Professionals seeking approval from Senior Leadership.

With that in mind, here are 5 key considerations to help HR make the business case for providing outplacement to employees impacted by redundancy and why it’s so important:

1. It represents a duty of care

Given the increasing emphasis in the workplace on topics such as employee wellbeing and mental health, the most forward-thinking organisations recognise the significant impact which access to specialist outplacement and career coaching can have on their employees. This not only takes the form of practical job search advice and guidance, but also and as importantly, the independent and confidential support a Coach can offer to help alleviate the personal anxieties, frustrations and concerns which redundancy can bring. The Mental Health Foundation state that 60% of employees said they would feel more motivated and more likely to recommend their organisation as a good place to work if their employer took action to support mental wellbeing. Outplacement can play a crucial role in providing vital support of that kind.

2. It’s crucial for brand reputation management & talent attraction

In a world where social media plays such a pivotal role in the way an organisation’s values and cultures are perceived, failing to offer the right type of support for employees impacted by redundancy can have a profoundly negative impact upon brand reputation and public image. According to statistics published by Glassdoor, 53% of job seekers look on online job boards for information about companies, and 74% of its users read four or more reviews before forming an opinion of a company, so it’s essential that companies manage their online brand correctly.

Not only does the provision of outplacement support (and in particular Career Coaching), help to minimise the negative fallout that can arise from disgruntled employees, it can also safeguard against an organisation’s ability to win the battle for future talent by positioning the company and their culture in the right way to those who they may be looking to recruit.

3. It supports survivor morale & can reduce attrition

Whilst ensuring that those employees who are directly impacted by organisational change are the focus for any support you might offer, the impact that redundancy can also have on those who remain with the organisation – or “Survivors” – should also not be overlooked. By demonstrating that you are committed to providing the best possible employee experience even in the event of redundancies, organisations can safeguard against the risk of reduced morale, motivation, engagement and productivity that can often impact those who remain and may even consider leaving on a voluntary basis themselves. A report from HR software firm Employment Hero, found that 42% of employees who wanted to quit their roles cited redundancy rounds or headcount changes as their top reason. Safeguarding against that risk is crucial.

4. Consider the costs

A common misconception when it comes to outplacement support is that it’s ultimately an unnecessary financial burden at an already expensive, financially critical time. However, outplacement shouldn’t be seen as a luxury nor should it be unnecessarily expensive. A good outplacement provider will be able to offer a range of options to suit a variety of needs and budgets, making it an affordable solution that in many cases can be delivered from as little as a couple of hundred pounds per individual. As important to consider however is the potential cost to the business of not offering support.  Any financial commitment your organisation makes to outplacement, can go a long way to mitigating against the risk (and offsetting the cost) of legal challenges which a disgruntled employee may seek to pursue as a result of the process.

5. It alleviates the burden on HR

Managing the process of redundancy can often be a complex and emotionally challenging experience, not only for those employees who are directly impacted by the changes but also those who are leading the process - most commonly that’s the HR or People team. According to recent research, 94% of HR Professionals stated that they’d felt overwhelmed by workload over the past six months, so enlisting the help of a specialist, independent and confidential outplacement provider to help carry some of that burden for them, can have a huge impact on their ability to manage the process smoothly and most importantly, deliver on the project effectively and achieve the organisation’s main goals. An exceptional outplacement provider should serve as an extension to the HR team themselves.

Renovo is the UK’s leading outplacement specialist. We work with both organisations and individuals to support all their career transition requirements. If you would like to understand how Renovo can help you, please email

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