The benefits of Outplacement as a method of managing staff redundancies and transition are often overlooked. While some firms may see an outplacement program as being a luxury that is unnecessary and an inefficient use of resources, the benefits of an established outplacement plan can affect businesses in a number of ways.

Redundancies are a necessary and inevitable element of many businesses. When implementing redundancies companies should not only examine how they are perceived by those leaving but also by those who are staying. The effect that redundancies have on the morale of those staying could lead to a de-motivated and de-moralised workforce.

An effective outplacement program gives a strong message that management is aware of staff concerns and will commit to ensuring as smooth a transition as possible into their next or new position. It can also create the confidence that, should further redundancies be required, they will be supported   An outplacement program that shows a company cares about its workforce may negate a large amount of the negative factors associated with redundancies and protect its reputation as a desirable place to work.

This is not simply a strategy for dealing with the immediate problems. In the long term former employees of the company could potentially influence good or bad press about the manner in which they were treated.  The impact of a positive experience can give a company the edge over a competitor.

A solid outplacement plan will have other positive effects. Treating transitioning employees with respect , care, honesty and dignity not only supports the company’s reputation , but can help with staff retention and attract a higher level of industry talent and high performers as the reputation of the company is raised.

Financially, Outplacement is justifiable for a number of reasons. Aside from the employee issues discussed above, outplacement programs may avoid the risk of future litigation.  As staff move on they spend less time in the transition process and move as quickly as possible to the next stage of their career.