In today’s uncertain business climate, many organizations are feeling the strain of rising costs and rapid changes. As companies explore ways to cut costs, layoffs and reductions in force (RIFs) are unfortunately becoming a common reality. While these decisions are never easy, offering outplacement support is one of the most responsible steps an employer can take.
Outplacement programs provide essential support and well-being services to employees who are facing layoffs. These services help individuals transition smoothly to their next career opportunity, offering resources and guidance to navigate a challenging job market.
Outplacement is not just the right thing to do for your employees. It also plays a vital role in protecting your employer brand, minimizing legal risks and reducing the long-term costs associated with layoffs and RIFs.
In this article, we share five critical considerations when preparing for layoffs, RIFs or organizational restructuring. These insights will help you navigate layoffs with care, ensuring a positive and effective transition for all employees affected by these changes.
Outplacement programs serve as an essential duty of care for employees who are leaving the organization. The most immediate reason for offering these services is to ensure that employees are well-equipped with the necessary tools, information and guidance to navigate the challenging job market and secure their next opportunity.
Although companies cannot directly control the availability of job openings or external opportunities, they can ensure that departing employees have the right resources at their disposal. Outplacement services offer help in key areas such as crafting a professional CV, understanding the hidden job market, mastering online networking techniques, improving interviewing skills, developing a personal brand and identifying transferable skills. These efforts allow your former employees to approach their job search with confidence.
An often overlooked but crucial element of outplacement is the recognition that each employee will have different career goals and needs. Some may seek new employment within the same industry or a similar role, while others might explore options such as self-employment, consulting, higher education or retirement. Your outplacement provider should tailor support to meet these varying needs, offering specialized guidance for each specific situation.
For employees coming from certain sectors, there may be a need to upskill or reskill before they can re-enter the workforce in a new role. Offering outplacement programs gives employees access to tools and training that help them adapt to a rapidly evolving job market, whether it’s learning new technologies, leadership skills or industry-specific expertise.
Additionally, organizations must consider the importance of their employer brand during these transitions. In today’s world, where social media and employer review sites like Glassdoor significantly influence public perception, it’s essential to treat departing employees with care. Employees who feel supported during times of change are more likely to share positive feedback, while those who feel neglected or mistreated may tarnish the company’s reputation.
Finally, organizations must recognize that former employees may one day return as “boomerang workers.” The global talent shortage is at an all-time high, and many companies find themselves competing fiercely for skilled labor. By offering outplacement services, companies show their commitment to helping exiting employees transition smoothly, ensuring that they may remain on good terms. This could lead to future opportunities to rehire former employees if the need arises.
While compensation is undoubtedly a key consideration for employees impacted by layoffs, financial packages alone are often not enough to ease the emotional and practical challenges of losing a job. Research consistently shows that employees undergoing outplacement services benefit most from one-on-one coaching, which provides a confidential, impartial space to discuss their career options.
According to our internal data, 95% of exiting employees report that coaching was their number one success enabler and satisfaction driver when undergoing outplacement. Personalized coaching helps employees assess their strengths, understand their skills and identify opportunities for career growth. For many, this guidance is invaluable as they navigate the emotional and mental toll of a job loss. With support from professional coaches, exiting employees using Right Management’s outplacement services report landing new career opportunities two times faster than the Bureau of Labor Statistics average.
Given the significant changes in the job market, many outplacement services now focus on upskilling and reskilling. Employees may be encouraged to explore opportunities outside of their traditional industry or field of expertise and receive guidance on how to pursue new qualifications or certifications. For instance, employees who worked in financial services during the financial crisis found themselves needing to acquire new skills in other sectors to be competitive. Outplacement programs play a crucial role in identifying areas where employees can improve and offering resources to help them develop the necessary competencies for future roles.
In addition to skills training, it’s equally important to support exiting employees’ mental and emotional well-being, especially since job loss can lead to psychological trauma. Outplacement services often include resilience training and change management techniques, helping individuals cope with the stress and uncertainty that accompanies job loss. Providing these additional support systems can improve employees’ chances of landing a new role, while also ensuring they don’t feel emotionally overwhelmed or directionless during the process.
Communication is a critical factor during organizational change, especially when layoffs or reductions in force are involved. It is essential that the messages shared with both departing and remaining employees are clear, consistent and delivered with empathy.
Feedback from candidates highlights that poor communication has a negative impact on morale during layoffs, often creating a sense of confusion and distrust. Employees need to understand exactly what the changes mean for them and what their next steps will be. Failure to communicate effectively can result in misunderstandings, a lack of trust and ultimately lower employee engagement.
One of the most important aspects of communication is providing clarity from the outset. Clearly articulate why the layoffs or restructuring are happening, how it will impact individuals and what support will be provided. Additionally, organizations should strive to answer common questions such as, “What does this mean for me?” and “Where can I go for more information?” It’s important that these messages are delivered consistently across the organization.
Often, messaging can become diluted as it passes through various leadership layers, leading to inconsistent or unclear communication. Organizations with effective communication strategies are 3.5 times more likely to outperform their peers. A transparent communication strategy ensures that employees remain informed and feel valued, minimizing the potential for confusion.
Moreover, communication should not be limited to the initial announcement of a layoff or RIF. Ongoing communication is necessary to ensure that employees feel connected to the organization, understand how their roles fit into the company’s broader goals and stay informed about the company’s direction. This ongoing dialogue is vital for maintaining engagement and motivation among remaining employees.
While much of the focus during layoffs is on those leaving the company, it’s equally important to support the remaining employees — those who will stay on and carry forward the organization’s work. Employees who remain after layoffs or restructuring often face heightened expectations and an increased workload. Without the right support, these individuals may become disengaged or burned out.
Organizations should invest in employee engagement strategies to ensure that the remaining workforce stays motivated, productive and aligned with the company’s goals. These strategies could include team-building activities, leadership training or regular communication to show that the company cares about the well-being of its employees.
Effective leadership plays a key role in this process. Leaders must guide their teams through change, offering support and reassurance as they adapt to new roles, expectations or challenges. It is essential that leaders are trained to communicate effectively and provide clear, consistent messages to their teams, ensuring that remaining employees remain engaged and feel respected and valued.
Additionally, companies should consider providing leadership development and change management training to their leaders to help them manage these transitions smoothly. This training equips leaders with the tools to support their teams during times of uncertainty and helps them foster a positive, supportive environment for the remaining workforce.
In today’s rapidly changing work environment, an effective outplacement provider must strike a balance between data-driven insights and emotional intelligence. These two prongs of outplacement services are vital for both current and future success in the labor market.
On one hand, outplacement programs should be equipped with data-driven intelligence — using global job market data, AI and mapping technologies to help match skills with open job opportunities. With talent shortages continuing to rise, leveraging these technological tools can significantly improve the chances of finding suitable employment for exiting employees.
On the other hand, emotional intelligence is equally important in the outplacement process. A personalized, human-centered approach ensures that employees are supported during what can be an emotional and overwhelming time. Outplacement providers should take the time to understand each individual’s personal circumstances, career aspirations and challenges. Providing a customized experience helps employees feel more supported and empowered as they navigate their next steps.
Outplacement services play a pivotal role in ensuring a smooth and effective transition for employees facing layoffs or organizational restructuring. By offering comprehensive support — including career coaching, upskilling, mental well-being resources and clear communication — organizations can mitigate the negative impact of downsizing on both employees and the business.
By following these five key considerations, businesses can not only demonstrate their commitment to employee welfare but also protect their employer brand, maintain high morale among remaining employees and position themselves for future success.
Outplacement services are not just a “nice-to-have” — they are an essential part of responsibly managing layoffs and RIFs, maintaining business continuity, protecting your brand and providing care and support to exiting employees.