Small Business Tax Center
Small Business Ideas, Grants &
Plans to Start & Run a Business:

Small Business Grants
CyberSchmooz
Network in Cyberschmooz Community Ask Questions Questions and Answers Share Tips Small Business Ideas List Your Business Business Advice from Idea Cafe Experts Coffee Talk with Experts Starting A Business Business Plan Biz Planning | Sample Plans Small Business Ideas Idea Name Your Biz Name Plan Your Biz Plan Financing $ Starting a Business Do It! Running your Business Marketing Tips Promotional Merchandise Marketing Tips Marketing | Sales | Customers Human Resources HR | Employees | Contractors Legal Forms & Tax Information Legal | Biz Forms Managing a Business Managing | Operations
Financing Resources Financing Your Business E Commerce & Webhosting eCommerce Take Out Info Trade Publications FREE Trade Publications Business Books Biz Books Your Own Business Small Business News Small Biz News Gen X Biz Gen X Biz Work at Home Work @ Home Business Information The Fridge - Biz Info on Ice Destress Send Awards Send Awards & Greetings Yoga At Your Desk Yoga @ Your Desk Fun Guide Guide to Find FUN Online About Idea Cafe Press Idea Cafe has received Idea Cafe in the News Idea Cafe's Kudos Kudos for Idea Cafe Advertise on Idea Cafe Advertise on Idea Cafe Privacy Policy Privacy Policy Contact Idea Cafe Contact Idea Cafe Link to Idea Cafe Link to/from Idea Cafe Join Idea Cafe
Search Idea Cafe Site Directory Site Map Online directory to business resources Biz Web Guide



Expert Answers to Biz Questions

Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.

color business bar

Layoffs Looming? Protect Your Organization With Outplacement Services

 

Laying off employees is never easy; it’s financially difficult for the employees who are let go, and mentally draining for everyone involved. In most cases, layoffs mean visiting stress, fear, upset, and financial hardship upon workers you’ve trusted, admired, and grown to care about over the course of their time with your company. But, while layoffs may not always be avoidable, outplacement services can smooth the transition for your former employees by helping them find new jobs faster.

But outplacement services aren’t just good for employees; they benefit organizations, too. Providing high-quality outplacement services to your former employees inspires trust and loyalty in those who remain behind; reduces your chance of facing wrongful termination lawsuits; protects your company’s reputation; and lowers costs associated with downsizing.

Keep Remaining Employees Loyal

Downsizing has a way of making everyone in the office nervous – and for good reason, because people need their jobs. A big problem with downsizing is that it can increase employee turnover, as workers begin to second-guess their loyalty to the company and jump ship before the layoff ax can fall on their necks.

But offering outplacement services to those employees who have been let go actually increases the loyalty of those who remain. That’s because they can see the company is willing to stand by its employees till the bitter end, by helping them navigate the job search after they’ve been let go. Employees want to feel that the company cares for them, and they want to feel professionally and financially secure. When they see that the company is willing to offer outplacement services, they see that there’s a security net there to catch them in the event they, too, are let go.

Reduce Your Risk of a Lawsuit

According to a study from the Federal Reserve Bank of Chicago, the majority of employees who bring wrongful termination lawsuits against their former employers do so not because they need the money, but because they feel humiliated by the company’s treatment of them. Laid-off employees who receive outplacement services are more likely to feel respected and supported by the company, and will have less incentive to bring a lawsuit. The same is true of employees who get new jobs quickly after a layoff.

Cut Costs Associated With Downsizing

The point of downsizing is to save the company money in the long run, but in the short run, it can be expensive. The mere costs of increased turnover that often come with downsizing can be considerable. But, while outplacement services can cost an additional five to 10 percent of an employee’s salary, they can pay off.

For example, outplacement services could help a 1,000-employee company, laying off 100 people, save as much as $1.4 million in wrongful termination settlements and legal fees. Because they help ex-employees find new jobs faster, they significantly reduce your company’s severance costs, including the cost of health care for recently-terminated employees. Your company will save on unemployment taxes, because the more of these benefits your former employees collect, the higher your company’s unemployment tax bracket. Investing in outplacement can also lower costs associated with absenteeism, which can more than double after a downsizing.

Protect Your Company’s Reputation

Employees and ex-employees talk about your company, and what they say goes a long way towards forming your reputation. When ex-employees feel that they weren’t treated fairly during the downsizing process and remaining employees are skeptical about the company’s capacity for loyalty, your company’s reputation will suffer. That will mean you’ll have trouble attracting the best talent, because those candidates will go to companies that offer more long-term support in the form of better severance and outplacement services. Your organization will retain a positive brand image, and you may even be able to someday hire back some of the employees you’ve just had to let go.

Outplacement services are great for helping laid-off employees embark on the job search process, but offering robust outplacement help keeps your company running smoothly, too. It eases the minds of employees left behind, so they don’t go looking for jobs with the competition; it reduces severance costs, unemployment taxes, turnover, and other financial drains; and it keeps top talent interested in your company. Don’t burn your bridges – offer your soon-to-be-former employees the outplacement services they need and deserve.

Google      

Small Business Tax CenterIdea Cafe HomeSign UpBiz Grant CenterCyberSchmoozCoffee Talk with ExpertsPeople in Biz ProfilesStarting Your BizBiz PlanningRunning Your BizFREE Trade PublicationsMarketingFinancing Your BizHuman ResourcesLegal & Biz FormsManaging Your BizeCommerceYou and Your BizGen XWork@HomeThe FridgeDe-StressSend an AwardSend an eGreetingYoga @ Your DeskWeb GuideIdea Cafe in the NewsAbout Idea CafeAdvertise on Idea CafeContact UsPrivacy PolicySite MapSmall Biz News

Copyright 1995-2018, Idea Cafe Inc. Downloads are for personal use only, not for resale to others, and may not be reprinted in any form without written permission from Idea Cafe Inc.

DISCLAIMER: We hope whatever you find on this site is helpful, but be cautioned that it may not apply to your own situation, or be totally current at any given time. Idea Cafe Inc. and all of its current and past experts, sponsors, advertisers, agents, contractors and advisors disclaim all warranties with regard to anything found anywhere on this family of websites, quoted from, or sent from Idea Cafe. and its related sites, publications and companies. We also take no responsibility for comments published by others on these pages.

TRADEMARKS: The following are Registered Trademarks or Servicemarks of DevStart, Inc.: Idea Cafe®, Online Coffee Break®, The Small Business Gathering Place®, Take out Info®, Biz Bar & Grill®, Complaint-O-Meter®, A Fun Approach to Serious Business™, CyberSchmooz™, and BizCafe™.