Former Employees Can Damage Your Org's Image

Employers stand to take a reputational hit if they don’t offer outplacement services to laid-off workers, according to RiseSmart’s white paper, “Insights on Job Seekers in Transition – What Every Employer Needs to Know.”

RiseSmart surveyed more than 1,000 workers in the U.S. and Canada who had been affected — one way or the other — by a layoff, and found that just over a third (36 percent) of those who had experienced a layoff were given outplacement services. Comments by these respondents who were not offered such services showed a “general sense of discontent” for their former employer.

“These organizations have a greater risk of being mentioned negatively in social media and on employer review sites, such as Glassdoor, and risk long-term damage to the employer brand,” the authors write.

The survey also found that 40% of workers who had not been laid off were not even aware that their employer offered outplacement services, in the event that they, themselves, would lose their own jobs someday. RiseSmart says inadequately educating workers about these services can come back to bite the employer.

“If your employees aren’t using the services you’re providing, you can’t realize the benefits of offering these services, including potentially lower tax liability, lower legal costs, and a better employer brand,” the authors write.

Employers can improve participation in outplacement services by delivering the most up-to-date contact information for eligible employees to the outplacement provider – who will then help educate impacted workers on the employer’s behalf. Companies should also invite a member of the outplacement services provider to be present during layoff notifications.

“In addition to supporting your employees after a layoff, a contemporary outplacement provider supports your HR team with a plan for how notifications should be delivered and training for the managers who will deliver the notifications,” the authors write. “Companies who don’t have a formalized plan for messaging and notifications are putting themselves at risk for negative consequences following a layoff.”

Indeed, those who received outplacement services were much more likely to retain a positive alumni sentiment of the company (59%) than those who did not receive any career transition services.

“The effects of alumni sentiment can be felt not only in social media where impacted employees discuss their experiences, but in the morale and productivity of those who remain at the company,” the authors write.

Employers considering outplacement services should make sure the provider’s career coaching model is designed with the participant in mind, according to RiseSmart. Before partnering with an outplacement provider, employers should ask to see results and make sure career coaches hold current certifications from International Coach Federation, and other recognized certifying organizations.