Thought Leadership

The Importance of Outplacement Services and Supporting Employees Impacted by Redundancy

Jun 27, 2023

Outplacement services provide assistance to employees in transitioning into the next stage of their career after organisational change that normally results in redundancy. Typical services include resume preparation, job search advice, interview preparation, LinkedIn profile development, career assessment to name just some aspects.

But what are the reasons that organisations should utilise these services?

  • For the departing employee or employees, outplacement provides immediate assistance and tangible support during a time of uncertainty; allows them to regain some form of control of their situation.
  • Outplacement reduces adverse impact on employer brand; a proactive approach to outplacement and support reduces reputational fallout once the “dust has settled” from organisational change.
  • Preserves culture of the organisation; once change has occurred then surviving employees can understandably feel quite anxious. To know that their former colleagues have received some practical and emotional support to assist them into the next phase of their career can also enable those who remain to approach the future with confidence and a greater appreciation of their company’s culture and values.

There are some employees however who may require extra or further ongoing support and it’s important that employers keep this in mind when deciding on the type / length of outplacement support to provide during organizational change.

Examples of people who may require this additional support include those who:

  • Are already experiencing hardship
  • Have had long tenure and are not familiar with other work environments
  • Are the primary breadwinner in the family or have substantial financial commitments
  • Are specialists to the industry or organisation and therefore feel that their skills may not be transferable to other work environments
  • Are currently paid above market rates and who may need to adjust their expectations moving forwards
  • Currently enjoy flexible arrangements required for child or elder care
  • Are currently underperforming
  • Have previously had bad experiences with redundancy or don’t react well to change
  • Have a disability or struggle with mental health

Generally speaking, departing employees who receive outplacement / career transition support as a result of redundancy will:

  • Have less ongoing emotional impact as a result of the redundancy
  • Maintain a positive attitude with former employer, especially “once the dust has settled” and they realise that the support was something the employer CHOSE to provide rather than HAD to provide
  • Feel supported in the pursuit of their next role and maintain a sense of optimism

It’s important to not fall into the “making assumptions” trap when engineering an organizational restructure and deciding on the level of support to provide those individuals affected by redundancy.

For example, it may be very easy to assume that an employee who is a single parent with financial commitments such as mortgages etc. may need more support than a senior executive who has been on a high salary.

Every person has their own unique set of circumstances and have varying levels of tolerance to any form of change, whether that be changes in employment status precipitated by redundancy or changes to any parts of their lives such as relationship breakdowns, death of a loved one, moving house etc.

Whilst the “it’s not personal” line may very well be true from an organizational perspective, it is very common for the human ego to take any form of perceived rejection as completely personal (especially if that rejection leads to potential financial hardship or stress), even if there are legitimate business reasons for the decision concerned.

So think very carefully when deciding on the level of outplacement support to provide to exiting staff – every person is different and so a “one size fits all” approach may not be the best solution.

Please contact paul.bell@vuca.com.au for further information as to how to best manage the redundancy process and how we can support your people in times of change.

Thought Leadership features articles written by VUCA Directors.

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