HR executives embrace outplacement assistance efforts

HR Magazine, March, 2004

Human resource executives give high marks to programs that help employees who are losing their jobs in a downsizing, according to a report from DBM, a New York-based consulting firm, and the Center for Organizational Research, a division of Linkage Inc. in Burlington, Mass.

Noting that "outplacement consulting and career transition services were once offered only in large organizations," the report says that "these services are now a standard of management practice in organizations of all sizes and are provided to employees of all levels."

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Based on interviews with more than 1,200 HR executives in North America, the report found that 78 percent believe that outplacement consulting and career transition services improve the organization's internal and external image. Seventy-two percent said these services help reduce litigation.

Two-thirds of HR leaders said outplacement assistance reduces stress on managers responsible for implementing organizational changes; nearly as many HR professionals said these services provide a good return on investment; and 59 percent said outplacement efforts improve the morale of remaining employees.

"HR professionals develop comprehensive outplacement and career transition strategies for multiple reasons, starting with the genuine desire to treat their former employees with dignity and assist them in continuing their career," says the report.

In addition, it says, HR leaders "recognize that, by providing effective support for departing employees, they reap dividends that go far beyond simply avoiding reprisals and lawsuits. A well-managed workforce change can maintain or even strengthen employee, community and investor relations. It is also key to ensuring high morale, productivity and retention among remaining employees."