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March 6, 2017 Ask ACE

Ask ACE: How can a company justify spending on outplacement services?

Q: Some companies offer outplacement to their departing employees. If you plan a layoff because of finances, how can you justify spending the money on outplacement services?

ACE advises: If your company hopes to stay in business, there are several reasons for considering outplacement as an investment.

  • You have employees you intend to retain and want them to adjust to the new and reduced work environment as quickly and smoothly as possible. They will notice how their employer treats those who must leave and respond accordingly. The outplacement program speaks to how they may be treated in the future.
  • There are generally feelings of some guilt on the part of the “survivors,” both the employer and the employees. Knowing that their departing colleagues have been treated with respect helps everyone during the transition.
  • Layoffs are particularly hard on managers. If they understand the outplacement program and know they are offering their employees some help, it can reduce the anxiety inherent in a layoff.
  • Departing employees can be particularly vulnerable to the temptation to do some harm to themselves, to others, or to the company. At the very least, employees who have just been notified can be in shock and not ready to drive home safely. Trained outplacement professionals can head off problems before they happen.

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