Get it wrong when it comes to making redundancies and it can have a lasting impact on both the company and the individuals affected; a well-delivered programme is in the interests of all involved.

While much of what we read about outplacement tends to focus on those employees being laid off, outplacement providers are equally there to guide HR and line managers through the redundancy process and beyond. 

One key area of support businesses can receive is around communication. Businesses need robust communication strategies to cover each critical step of the down-sizing process. In worst case scenarios, where this hasn’t been managed effectively, employees have learned of their fate from stories in the press before receiving official notification from managers – a nightmare scenario for any organisation to have to manage.              

Another area where experienced outplacement providers can help the business is by offering guidance for younger or less experienced middle managers who are not likely to have led through a downturn or experienced a programme of down-sizing before. As these managers are unlikely to have made, or communicated redundancies before, they may need support in delivering the news effectively and deal with the fallout once an initial announcement has been made.

Sending unequipped managers into a potential line of fire will put them under unnecessary stress and make a bad situation that much worse for staff and managers alike.  At worst, it could mean a failure to follow proper procedures, opening the organisation to legal challenges, costing money as well as reputation.         

Organisations may be reluctant in investing in services for those who are leaving their organisations, asking themselves, what exactly the return on that investment would be.  Adopting such a view is missing the bigger picture.

Over the last few years employer branding has shot up the HR agenda and as a result many companies have invested heavily in corporate social responsibility initiatives, reward and well-being schemes and improved company websites to demonstrate to potential applicants that they are a business worth working for.

So, why neglect the very same values when it comes to making people redundant? By managing redundancies badly, companies risk angry ex-employees doing serious damage through negative PR. This is detrimental to the brand and can impact on future business, as former employees may well end up being potential customers one day. It is also likely to make ‘surviving’ employees seriously question the ethics of the company, making it much more difficult to galvanise the support of those that remain in driving the organisation forward.  After all, a redundancy exercise alone rarely pulls an organisation out of the ‘hole’ they find themselves in; it is simply the first step in re-energising and re-focusing the workforce’s efforts.

From a positive perspective, as well as maintaining a strong employer brand, organisations taking a best practice approach to outplacement could set up an alumni to keep in touch with past employees who may have the opportunity to return in better times - saving future recruitment costs and retaining the trust and loyalty of former workers. 

For many people, being laid off can be received as devastating news. After the initial shock, attention can very quickly turn to personal finances, particularly if individuals have a mortgage or dependants. With this in mind, bringing in an independent financial adviser to offer advice on budgeting and how best to use redundancy payments, can be a valuable element of an outplacement package.  

But it’s not just an individual’s finances that take a battering. Going to work provides routine, social contact and a sense of purpose. It forms a large part of a person’s identity. Take this away and it can leave people feeling lost, vulnerable, anxious and depressed. In cases where individuals are struggling to cope with the emotional fall-out of redundancy, employers can help by providing access to counselling services to explore issues in a safe and supportive setting.

For some that are laid off, the advice we give is to seek out new meaning in their lives.  This may translate into maintaining a routine e.g. filling days with networking and job applications, as well as keeping mentally and physically active through exercise. For many, this lowers the risk of depression, and will significantly help individuals stay psychologically ‘well’. This, in turn, will help them present themselves in a positive light to potential new employers.         

It’s also worth remembering the more ‘basic’ outplacement services such as CV-writing and interview-skills training are also incredibly important. Long-standing employees may not have been in the job market for a number of years, so giving them the chance to build the knowledge, skills and confidence they need to understand the changing job landscape, is integral in helping them to progress.