Could poor outplacement support make your company vulnerable?

Letting employees go is something many companies have to deal with and sadly, by the time an employee is asked to leave there is little that can be done to save the roles at stake. Although redundancy or restructuring is usually pursued in order for the company to evolve and grow, it can sometimes cause repercussions that have a negative impact on the business. Offering your former employees outplacement support can help to ensure that they receive the help they need to remain positive, move forward and find employment again. Most employers will make sure that they provide an excellent outplacement service as the least they can do for employees, but some will not take as much care into ensuring their outplacement service are the best available, or may even fail to provide the service at all.

Unfortunately, when companies dismiss their employees and leave them in the hands of poor outplacement support, it isn’t just the individuals who may suffer. Whilst choosing a cheaper or less comprehensive programme may be attractive from a financial point of view, it could actually be more costly to your company in the long run. Here are just some of the ways which this has, unfortunately, occurred in the past.

Increased conflict

It can be difficult for an employee to understand why they have been chosen to leave a company and, understandably, few will take the news lightly. An employee may feel hurt or abandoned by their employer and it is not uncommon for a conflict to develop between the two sides without adequate emotional support and additional career guidance. Whilst some conflicts may be fought with words alone, others are not so lucky. There have been instances where former employees have acted as corporate spies, traded confidential information or even caused physical damage to property. Regrettably, each of these will have negative repercussions for the spurned employee and the former business alike.

Legal disputes

Employees who feel they have been wrongfully dismissed are entitled to seek legal help to make a case against the company or employer. Whilst restructuring and redundancies may be necessary, an employee who is not provided additional outplacement support to deal with their job loss may be more likely to pursue a legal dispute. Should this progress far enough – and, for example, if you’ve missed any step within the redundancy process – your company could stand to lose a great deal of money in order to protect its reputation. Legal disputes, much like instances of increased conflict, are more likely to attract media attention. Understandably, having a strong outplacement programme in place can reduce the negative impact of media scrutiny, as well as demonstrating that you have offered an appropriate level of support to anyone contesting their redundancy.

Demoralised workforce

For those employees that remain, watching their former colleagues leave can be disheartening and cause quite a lack in motivation, especially if they see them leave without any support from their former employer. The last thing an employer needs is for their staff to feel frightened that the same might happen to them and let their fear and lack of morale affect their work. Employers must do everything they can to give remaining employees confidence in the company and reassure them that support is always on hand. Without good outplacement support in place, remaining employees might feel as though it is better to leave of their own accord now, before they are left in the lurch.

Hampered future growth

Far beyond the need to provide outplacement support for the reasons above, however, is the need to think about the long term success of the company. A bad reputation or poorly motivated workforce could have long-lasting negative impacts upon your company’s productivity, with some estimating that it can take up to five years for a company to recover from poorly handled redundancies.

At Renovo, our team of professionals offer only the best outplacement services, providing tailored, flexible and effective outplacement support. We believe you shouldn’t have to choose between affordability and successful support for your workforce. If your company is still searching for a programme that both you and your employees can really benefit from, why not contact the team today to see what we can do for you?

Renovo is one of the UK’s leading providers of outplacement and career transition support. 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 call 0800 612 2011 or email info@renovo.co.uk