The challenge, however, is that redundancy costs add up quickly – notice pay, holiday pay, redundancy lump sums. So why would you want to invest more in people who are leaving? Answer that question and you’re ready to present your case to the senior team. So, let’s explore the benefits of outplacement support, what to include in your business case, and strategies to help secure investment.
The benefits of outplacement support
Outplacement support is wide-ranging and includes job search guidance, career coaching, group programmes, right through one-to-one transition coaching. And detailing the services you’ll use is just one element of your business proposal.
But you need to win hearts and minds. So here are some outplacement benefits which will help you convince senior leaders outplacement would be good for business:
- Boosts brand reputation: Senior leaders value the business’s reputation, and they want it to grow. A good outplacement experience can reduce the risk of negative comments on social media. It can also generate positive posts about what a considerate and supportive exit people have had.
- Increases morale: People want to work for companies who value them. Offering outplacement services shows you care, and helps you demonstrate people matter at all stages of the employee life cycle. It also gives people who are staying reassurance that you will support them if they’re ever in the same situation.
- Demonstrates inclusion: Traditionally, outplacement support was reserved for senior positions. With better options for CV advice, interview skills and group coaching programmes, outplacement offers cost-effective support at all levels of the organisation. So, you can lose the executive-only approach and instead provide the benefits to all your teams.
- Higher retention: This might seem an odd one to list, but the way you manage redundancies has a lasting effect. When you provide additional support through outplacement, those staying with the business reward recognise your actions. And reward them by staying with you for longer.
Now you know some of the reasons people should invest in outplacement services, you can start to structure your business case.
Creating your business case around the benefits of outplacement for senior management
While it would be great to say this is a proposal that’s all about the people, that just isn’t true. Your senior team are fully focused on the commercial elements of the business right now, otherwise you probably wouldn’t be making people redundant.
So, make sure you include cover the key points they’ll want to know. And, if possible, make it part of the redundancy proposal so they can see how this might offset some of the other costs.
Consider including details on:
- What outplacement is: Many senior leaders may never have experienced outplacement so share a summary of the options available. Be brief and point them to additional resources or blogs for anyone who wants more information.
- The benefits of outplacement support: Outline why you would want to offer outplacement when people are leaving. Tailor the benefits to the services which would be most useful to your business, and include case studies where you can.
- Your choice of provider: When choosing an outplacement provider, make sure you’re clear on the services they provide. Are they career coaches or do they also offer transitions coaching? Can they support groups or do they only work with individuals?
- Cost of investment: How much will they need to add to the redundancy budget to be able to offer outplacement services?
- What’s the return on investment (ROI): Consider the direct and indirect costs you incurred through previous redundancy programmes. Include the cost of time for managers and HR to review appeals, manage Tribunal claims, and engage solicitors. Did you offer support for reviewing CVs, run mock interviews or run group workshops? All these take someone away from their normal role
- Competitor analysis: This could be a way to stay ahead, or at least keep up, with your competitors. If they are already offering outplacement, do you really want to be seen not doing that? And if they aren’t, this could be a positive way to differentiate yourselves.
Whatever you include in your proposal to the senior team, make sure you back it up with evidence.
Strategies to secure buy-in for outplacement support
You’ve already made sure you have the finances and statistics to back up your proposal, so what else can you do to get people on your side? Well, here are some ideas which you might help:
- Get support from Finance early
There’s nothing an accountant likes more than running through the numbers. So let them. Walk them through the tangible and intangible benefits of outplacement support and get advice on how to quantify the benefits. Consider how much you’ve invested in culture change programmes or branding and PR, for example. And then factor in the potential impact of employment tribunals, drops in productivity, and reputational damage if you get a flurry of poor reviews on Glassdoor.
- Start with a pilot
If you’ve never used outplacement before, use the current programme to demonstrate its impact. Capture key metrics like number of appeals, tribunal claims, successfully placed candidates etc. While you may not hire these people back, helping them find a new role or fulfil a next step is a success story for you too.
- Show how outplacement supports company strategy
Presenting outplacement as a one-off activity is doomed to failure. You need to show how it fits into your overall people strategy. Identify links to your values, your culture, and your future talent needs. Connect the dots for the senior team so they see outplacement support as part of a wider approach to valuing your people.
- Use real stories to help others see the potential
Help put your senior team in the shoes of those at risk of redundancy. What support would they want for themselves or their friends and family in a similar situation? Use case studies to bring the ideas to life and, if you don’t have any, ask your outplacement provider to share theirs.
The benefits of outplacement: A lasting impact from a small investment
Effective redundancy programmes aren’t about getting rid of the fewest people in the least amount of time. It’s about being meaningful, respectful and sensitive to the situation people are in. Offering outplacement support does all those things.
It allows individuals to have some control over what happens next. And provides them with advice and guidance on what they need to do, without depleting internal resources and energy. And it leaves a positive feeling with everyone involved.
So, if you’re considering making redundancies and outplacement doesn’t yet form part of your standard approach, now’s the time to ask some questions. The benefits to brand reputation and internal engagement far outweigh the financial investment.
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