Outplacement Archives

Leading ON PURPOSE

The heart of human excellence often begins to beat when you discover a pursuit that absorbs you, frees you, challenges you, or gives you a sense of meaning, joy, or passion.

Terry Orlick

“Where do you hope to be in five years?”

It’s a common question asked during interviews and goal setting conversations with employees. “I hope to be in a leadership position,” or “I hope to be promoted to a Vice President role” are not uncommon answers. When asked why they want to achieve that position, their usual answers include: “Because I want to be in charge,” “Because I want to be the boss,” “Because I will make more money,” or “Because I’ve been told that I am good at what I do and that is the next step for my career,” and the most common, “It is the obvious next steps for my career.”

Unfortunately, while all of these are most likely genuine answers, they’re not the right answers when it comes to pursuing what we term: Leadership ON PURPOSE. “Because I want to be in charge” expresses a desire for control and oversight of others; “Because I want to be the boss” expresses a motivation to run the show; “Because I want more money” is a motivation for self-benefit; and , “Because I am told that I am good at what I do and that is the next step for my career” is a statement that serves one while appeasing others. It seems the obvious next step in their career is more of an entitlement. Leaders need to want to be leaders for the “right” reasons.

Our belief is that to have what it takes to be a leader who others truly want to follow; one must have a leadership mindset that is purpose-based rather than results-based. Moreover, Leadership ON PURPOSE has two aims that must intertwine: one is pursuing a leadership role with intention; the other is ensuring that one’s vision, plans, actions, and behaviors align with the vision, values, and goals of the organization. Leaders aren’t simply born and developed; they have a mindset that believes their purpose is to impact others.

A perfect example of greater purpose versus personal results can often be found among highly skilled professionals like engineers. There are many energetic engineers, with aspirations to be the heads of their engineering departments, groups, or divisions. They feel a need to lead other engineers. They see it as their means to a greater title and a higher rate of pay, even though their real talent and satisfaction comes from designing new and innovative things. It’s what compelled them to become engineers in the first place.

The outcome is not surprising. Many extremely talented individuals aspire to leadership roles, only to find once they arrive that they are no longer able to concentrate on and do what they do best. They realize, often too late, that the role of a leader is completely different from what they had expected, what motivates them and what they are skilled to do. We’ve experienced this outcome in every organization we’ve worked with.

Let’s look at an example we have seen in many organizations and in many different roles (sales, operations, finance, product development, information technology, marketing and other). This example is that of a high-performing engineer. In this example, the chosen successor for a senior leadership role was identified in succession plans as one of the emerging leaders in the organization, a highly-skilled electronics engineer who had tremendous success with design innovation, margins, and market share. He seemed to be a great choice for leadership, yet this turned out to be a poor decision for both the organization and the chosen leader. Although in a new position, he was still getting too deep into the design tactics. He kept spending his time on technical matters and not leading and building his team. He couldn’t separate himself from his passion and talent as an engineer. This inhibited his ability to build the organization and lead the team.

This new role didn’t work out for the engineer and he was later exited from the organization. A talented professional, identified as top talent, now out of the company. It happens often because we tend to promote for technical capability, not leadership capacity. Organizations also need to assess aspirations and desire to be in a leadership role for the “right” reasons. In the example above a new leader was identified who did demonstrate the qualities and attributes of leadership. And although he wasn’t as technically skilled as the members of his team and was actually being paid less than most all of the engineers on the team, he was able to build a very strong, united, and focused group of skilled professionals.

ON PURPOSE Leaders want to be in a leadership role for a reason. It is not about the title or attaining credit for being at the helm when the team’s engineering designs would lead to patents but helping the organization to excel in its capability and expertise.

John C. Maxwell notably said, “Leadership is not about titles, positions, or flowcharts. It is about one life influencing another.” This is what we mean when we talk about Leadership ON PURPOSE. Agile leaders have the character traits, behaviors, and skills to be the leader of others.

It is our belief that Leadership ON PURPOSE serves the greater good of self, others, and the organization. A leader who establishes a vision and goals, develops new opportunities for the value and prosperity of others, and unites the organization in that quest is Leading ON PURPOSE. It means that behind a vision there is purpose and the right mindset to create and pursue that vision in the first place.

In our book, “Leadership ON PURPOSE,” we provide rationale and a roadmap, tips and techniques for developing the six attributes of agile leaders that you and your leaders will need to attract, inspire and retain the best talent. Learn more here.

Personal Integrity is Key for Agile Leaders

An analogy we like to use about building trust and integrity is having change in your pocket. Every time you do something that builds trust or helps people align with you, you collect change in your pocket. It could be a quarter here or a dime there for your promises made and kept.

You want to continuously build the amount of change you have, for there will be times – and hopefully not often – where you’ll have to give back some of that change for missing a commitment or some other deficit. The key is making sure you’ve built enough integrity and credibility that when you make those mistakes, people will understand. Everyone makes mistakes. Your goal is to make them rare: to always have change in your pocket.

Many leaders make mistakes without establishing a level of integrity and credibility. Many don’t feel they have to establish their persona in the eyes of others. They view themselves as the most senior people in the room who don’t require feedback or a need to explain themselves.

John Maxwell once said, “The respect that leadership must have requires that one’s ethics be without question. A leader not only stays above the line between right and wrong, he stays well clear of the gray areas.” In Warren Buffet’s words, “In looking for people to hire, look for three qualities: integrity, intelligence, and energy. And if they don’t have the first one, the other two will kill you.”

Personal Integrity is a foundational attribute we focus on when defining an Agile Leader. A leader’s integrity is often based on one’s leadership presence and the principles followed. We believe one’s personal brand, trustworthiness, ethical resolve, and communication and transparency are key to being viewed as a leader with Personal Integrity.

Booher Research surveyed over 200 professionals in a variety of industries to ask them their reasons for wanting to increase their personal presence. Forty-eight percent said their reason was either to increase their credibility or sell their ideas and projects. According to Booher, that percent of respondents hasn’t changed over the past 30 years. Additionally, when participants were asked, “In general, how much does someone’s personal presence affect how much credibility they have with you?” almost 75 percent replied, “A great deal.”

Agile Leaders convey their unique presence through their values. They make and meet commitments while demonstrating ethical resolve in every circumstance. It is the primary quality that gains the loyalty and trust of employees. They act with resilience and determination even when decisions may not be popular. They demonstrate genuine curiosity, active listening, and transparency when engaging with others by quieting their inner voice, focusing on the person, listening to understand, and repeating what they said.

We believe that when Agile Leaders establish their leadership presence and define the principles they follow. They lead with integrity through their personal brand, their trustworthiness, their ethical resolve, and their communication and transparency. But what exactly does Leading with Integrity look like? It’s actually a combination of many behaviors and practices, including:

Leading by example and being a role model to others. This defines your personal brand and presence in the eyes of others.
Having the consistency of being honest and trustworthy in all your actions.
Following through on commitments and doing the right thing.
Demonstrating ethical resolve.
Communicating with intention and transparency in all situations and in all formats, whether spoken or written.

Agile leaders realize that their Personal Integrity as reflected by their words, actions, decisions, and methodologies help to create their organizations’ true values and culture. Studies show this attribute extends benefits to both leaders and their organization.

Research has linked greater integrity with increased workplace performance.
Leaders with integrity foster greater trust and satisfaction from their direct reports, who are more likely to follow suit.
Employees serving under leaders with high integrity demonstrate more positive workplace behaviors (e.g., helping others during busy periods) and fewer negative workplace behaviors (e.g., falsely calling in sick).
Employees who trust their leaders to have integrity are likely to work harder, perform better, and have greater company loyalty.

The journey to become an agile leader is rife with complexity and ambiguity. One of the key elements that must be established is a level of trust and personal integrity. Leaders who lead ON PURPOSE understand the importance of building credibility. If you want to be a leader others will follow, trust and integrity is where you need to start.

In our book, “Leadership ON PURPOSE,” we provide rationale and a roadmap,
tips and techniques for developing the six attributes of agile leaders that you
and your leaders will need to attract, inspire and retain the best talent. Learn more here.

What Do Your Outplacement Services Say About Your Company?

Organizations today do not always consider the cost to real people who are being exited from the company and many more strongly underestimate the impact these actions have on their brand and on those who remain with the company. For organizations that do not provide meaningful outplacement services, the level of distrust both within and outside the company begins to skyrocket.

For businesses that genuinely care about people and their wellbeing, and for companies that want to protect their image and reputation while preserving the productivity and engagement of their workers, outplacement services might be the missing link. Meaningful and personal — or what we call purpose-driven — outplacement services are a major element that defines corporate culture, elevates employer branding, enhances the cultural fit and reduces distrust both within and from outside the company. Moreover, it is a kind and compassionate thing to do for people who are likely facing one of the worst times in their lives.

When a reduction in workforce event happens, how the experience is felt by the affected employees, the individuals who remain and the key decision-makers within the company can vary widely. There is no common understanding of how it should all go down, but every company probably strives to provide an experience that is the least harmful to everyone involved. The problem is that while trying to reduce harm is a noble pursuit, too many companies are missing the mark and are finding themselves, their employees and the outplaced people in positions of stress, distrust and disengagement.

Finding A Career Versus Finding Another Job
Delivering an excellent outplacement experience means partnering with an organization that has a high-touch approach; one that includes face-to-face meetings, one-on-one coaching and assessments, and meaningful activities that help people figure out how to move forward. These services must be so much more than “exclusive” access to job listings and help writing resumes. Instead, these new job-seekers need help understanding the current marketplace and finding a new company that offers the cultural fit and professional satisfaction that come from finding more than just another job, but instead transitioning into a rewarding new career.

Displaced individuals also need a place to tell their story. They need to be able to articulate how it happened to them and share this story with others so they can process the events emotionally as well as professionally. The objective of this is to help outplaced individuals work the events into their history in a way that does not self-sabotage their efforts to find a new position. When faced with the inevitable question of why they left their last employer, outplaced individuals must have an answer that has been emotionally defused and professionally prepared to answer the interviewer’s question quickly and satisfactorily so they can move on. Outplacement services must be able to work through this with the individuals so they can put the old company behind them without any residual hard feelings.

Link to Your Employment Brand
Companies interested in outplacement services need to ask themselves why it is important to them. What are they trying to achieve? Is the intended result to simply have the ability to ease the consciences of those who hold the reins so they do not have to feel bad about downsizing events? Or is the intention of the company to provide real services that genuinely reach the
core of what it means to a professional, productive human being who unexpectedly loses
their position in the company – and in their minds – their position in the world? Is your goal to understand the individual factors affecting your former colleagues in order to help them find their next career? Concerns like financial difficulties, marital situations, and family concerns can impact their timely success in moving forward. Is it enough to pass on some links to an online library and move on?

What do you want your legacy to be?

Learn more about LAK Group’s Outplacement services.

Outplacement. On Purpose.

Outplacement Services that Strengthen Your Employment Brand

Outplacement is Good for Your Business
A strong employer brand is critical to attracting the best talent, and in this job market, it means more than ever. Studies show that nearly 70% of employees share their poor layoff experience with others. By ensuring that your exiting employees are immediately focusing on their careers, rather than their anxiety and frustrations at being let go, you’ll substantially reduce the adverse impact on your social reputation. Employees, future job candidates and customers are watching. They are sharing their stories on social media and other outlets like Glassdoor and job boards. And make no mistake about it, when you’re trying to attract top talent, those bad reviews and comments on social media matter. The right approach to outplacement significantly reduces reputational fallout.

Internal Motivation is Important for Remaining Employees
It’s not just about the employees you’re laying off. It’s about the ones who remain, too. Layoffs cause a lot of anxiety among survivors who wonder if they’re next. Knowing their colleagues got help finding new jobs does a lot to calm those fears. And it creates loyalty, too, when they see you doing right by their friends and colleagues. When advanced notice is possible, allow exiting employees to begin using outplacement services while still at their jobs. They are far better prepared to hit the ground running when their employment ends and more likely to remain willing ambassadors of their previous employer’s brand, endorsing their company online and among their peers, or at least standing neutral. There is always room for high-touch handling of offboarding in these sensitive situations.

There is a Direct Link to Your Employment Brand
Companies need to ask themselves why outplacement is important to them. What are they trying to achieve? Is the intended result to simply have the ability to ease the consciences of those who hold the reins so they do not have to feel bad about downsizing events? Or, is the intention of the company to provide real services that genuinely reach the core of what it means to a professional, productive human being to unexpectedly lose their position in the company – and in their minds, their position in the world? Do you really want to understand the individual factors that these human beings have — financial, marital, family, background — that will help or hinder them from finding their next career, or is it enough to pass on some links to an online library of resources and move on?

The Right Outplacement Services Partner
The right outplacement partner for you depends on what you are trying to accomplish with the
experience. We like to use the term ON PURPOSE. Some organizations offer outplacement to check a box. Their focus is on cost and they don’t mind when their exiting employees don’t use the service. For those organizations, there are a number of low-cost and virtual coaching options. Conversely, a growing number of organizations recognize the impact on employer brand preservation. If your company image inhibits your ability to attract and retain the best talent, you have a problem that is significantly larger than any cost associated with outplacement services. For these companies, the decision process is a little more complicated. For instance, the effectiveness of the outplacement partner’s ability to reach out, connect and engage with exiting employees becomes an important factor.The hands-on coaching and supporting technology and other resources drive a rewarding experience for exiting employees.

The right outplacement partner will provide personalized services at a great value. Ask about the ratio of participants to coaches. Coaching is only useful if you can gain access to your coach. Ask how coaches are selected and trained. Ask about the process for matching coaches and ensuring compatibility. Ask if face-to-face meetings are possible. Ask if they provide onboarding coaching for individuals once they find a new job. Understand the reporting and feedback your outplacement partner shares with the organization. Quarterly progress meetings are a key element with high-quality outplacement providers.

Check if the majority of services are delivered virtually through online training sessions with limited contact to a coach or time restrictions. Make certain the service is not time-based as every person moves at a different pace. Ask about the vendor’s commitment to innovation and ask about the role that technology plays in their solution. The increasing role of software in outplacement solutions is a noteworthy trend of late.

Benefits of LAK Group Outplacement
1. Stronger brand reputation. Layoffs are a vulnerable time for a company’s brand. Exiting
employees, if they feel they’ve been treated poorly, can publicly share their opinions about your
company on Glassdoor and social media. Remember that nearly 70% of people choose to share
their poor layoff experiences with others. If the public hears that you have provided a soft
landing for exiting employees, they will be more likely to retain a higher opinion of your
organization.

2. Attract and retain talent and customers. Most employer branding research shows that over
60% of consumers have stopped purchasing a brand after hearing news of that company’s poor
employee treatment. Additionally, retention of talent becomes harder once the reputation as an
employer is damaged. Protecting your brand image with modern, high employee engagement
outplacement services puts you in a better position as an employer of choice and attractive
alternative for customers.

3. Company culture that makes you an employer of choice. During and after a workforce
reduction or simply exiting an employee, it is critical for companies to foster a positive company
culture to preserve the productivity of the employees who remain. If departing employees are
able to land new jobs through an effective outplacement program and are treated to a positive
experience, remaining employees are likely to conclude that they work for a purposed-based
company that truly cares about its people.

If you have questions regarding career coaching and outplacement services, the team at LAK Group is happy to talk about this valuable service, an inspirational client experience and why you should offer a more modern, coaching alternative to your outgoing employees.

How Outplacement is a Win-Win

When an employer offers a position to an individual, it usually comes with all the hopes of a long and fruitful relationship between the two. Of course, it does not always work out that way. The reasons are varied — downsizing operations, poor cultural fit, cutting costs — but the results are still the same: someone loses their job, their source of income and security, their professional outlet and in many cases, their dignity.

Previous generations of workers were encouraged to give their best and were rewarded with gainful employment and loyalty from their employers. However, The Great Recession dramatically changed the working relationship for both groups. The days of people working for one company for their entire careers have been replaced with uncertainty on both sides due to technological advancements, ever-changing economic conditions and consolidation in the marketplace.

Most companies will have a time when they need to downsize. Doing it the right way will benefit those affected as well as the organization. Outplacement is a kind and compassionate thing to do for people who are likely facing one of the worst times in their lives.

Is It Me?
When an outplacement event happens, how the experience is felt by the affected employees, the individuals who remain and the key decision-makers within the company can vary widely. When the termination happens, people can be left struggling to understand and cope. Without good communication, people often have difficulty understanding why they were let go and may worry
whether it was a personal problem or if something was “wrong” with them.

According to a study by Stanford University, the impact of being laid off can include emotional reactions ranging from anxiety, sadness, fear and shame to physical manifestations such as fatigue, headaches, weight changes, muscle pain and nausea. Plus, while the company knew the termination was coming for at least a short time, this information is typically a shock for the individual, who may immediately be stressed by the fears associated with the loss of income and productivity. All of which adds to the confusion, feelings of failure and insecurity that people feel when they were outplaced by their employer.

It is About Experiences
In many cases, outplacement services are impersonal and inadequate — access to a website with resources and a virtual coaching session — and serve more to make the decision-makers feel better about letting people go rather than providing actionable, proven services that will help the outplaced transition to a new career.

Depending on the industry and the position of the individual, securing a new position can take anywhere from a handful of weeks to six months or more. Generally speaking, the higher up the ladder and the more specific the skillset, the longer it will take an individual to find a position that is truly a good match and a solid career move that will provide satisfaction and stability.

There has to be something more substantial — more human — for people beyond a library of digital resources. Outplacement services must be far more significant and individualized to be useful. It is clear that offering resources to those who are being moved out from their positions is a good thing, and most companies who work to provide these services are doing so for a good reason and with the best intentions. However, it also is clear that outplacement services have to go far beyond offering a handful of digital resources that the outplaced can browse on their own. The good news is there is a better way; a complete solution that still achieves the objectives of the downsizing while providing a genuinely soft landing for those being moved out and, just as necessary, a positive experience that eases the fears and tensions of those employees who remain with the company.

Learn more about LAK Group’s Outplacement services.

Outplacement. On Purpose.

Job Loss: The Family Conversation

Job loss is one of the most stressful events you’ll experience in your lifetime. It’s extremely difficult and can be overwhelming, particularly when it comes to sharing the news with your family. Spouses and partners want to be supportive and help with your search, children look to their parents as leaders of the family but worry, and extended family members are often overly curious and sympathetic.

Feeling sad, angry or embarrassed in the wake of a layoff is perfectly normal. So is feeling like you have no idea how you’re going to share this news with your family, friends and network. However, leaning on your inner circle for support will help you get through the tough days ahead.

The people in your life will react in many different ways, depending on how resilient they are in the face of stress and fear of loss. Clear communication is critical with your family after a job loss to help ease their anxiety and provide answers to difficult questions. This way, they’ll know the family will be OK and back to normal sooner rather than later.

Your Spouse or Partner

This is the most important person in the equation, since he or she will be the person you most likely look to for support. After you learn of your layoff, it’s OK to take a few hours to process this change but inform your spouse or partner as soon as possible. This is part of the â€œgo slow to go fastâ€ approach.

Be calm when sharing the details of what happened, assuring your spouse or partner that you have or will have a plan, and that the family will be fine.

Don’t make any immediate changes to your personal life. For example, don’t cancel paid trips, your internet service, or your cell phone service. A vacation could be good for you emotionally, and you’ll need the internet and your cell phone to help with your job search. What’s more, you want to avoid adding more stress in your home. There will be time to adjust your finances later as things unfold.

After you’ve been laid off, your spouse or partner may begin to give you advice on how to find a job and monitor your visits to online career sites. You may need to set limits on this type of help. Often, the people in our lives tend to want to fix things for us, when really all we’re looking for is someone to listen. Career advice will be flowing from all sources, but it may be inaccurate, out-of-date or even detrimental to your campaign.

Figure out what you need and want from your spouse or partner. Some people are grateful for a lot of help, others want to handle things on their own. Have a composed, truthful conversation with your significant other, explaining how much help you want (or don’t want).

Also, let your spouse or partner know it is perfectly OK to find people they can talk to about their concerns surrounding your search, as this allows a bit of emotional freedom for both of you.

You may want to shield your spouse or partner from your worry, but it is important to not leave him or her in the dark. You are in this together and communication is critical. Let your significant other know the status of your job-searching activities the good and the bad. You may also find that this releases some stress for your entire family.

Your Children

It is critical to remember that with children, it’s not just what you say, but how you say it. Children pick up on their parents emotions and attitudes, so you must stay positive.

You should be open and honest, but you don’t need to provideÂ allÂ the details of the situation. The key is to let them know that the family will be fine.

With your partner or spouse at your side, inform your children soon after the job loss. What you say will depend on your child’s age. Very young children (age 1 to 5) don’t need to know much; elementary and middle school-aged children may need additional information. For them, you could say: Mom is looking for a new job and she will be able to spend more time with you in the meantime. We will be fine.

If you have high school or college-aged children or grown kids in their 20s who are on their own, they’ll comprehend more so they’ll need more information, but not necessarily all the specifics.

If older children are worried about you not being able to pay for prom or college, don’t lie. Let them know that you will work together as a team and develop a solution. Update your plan if unemployment becomes extended or the impact of your job loss on your family changes.

Also, use some of your new-found free time to do things with your children (and spouse or partner) that you weren’t able to do when you worked. Your situation may be difficult for your kids, so try to offload stress with a bit of family time. Keeping a watchful eye on your spouse/partner, your kids and yourself will be a critical component to keeping stress levels tolerable as you drive toward the outcome you look to achieve.

How a Negative Outplacement Experience Can Hurt Your Business

Outplacement: in everyday use, the word is often a kinder replacement for terms such as aid-off or downsizing, both of which have a bit of negative stigma and a touch of fear associated with them. Outplacement, by definition, means the provision of assistance to laid-off employees in finding new employment, but we think it goes a little further than that at least it should.

In human terms, losing one’s job often means more than a loss of income; it can also mean a loss of one’s stability, security, and even dignity. The result can include everything from anxiety and sadness to physical symptoms such as headache and weight changes. The loss of a predictable day compounded with the loss of purpose, belonging, and challenges associated with the former position can leave people debilitated, and that feeling grows steadily with each new day that doesn’t bring a meaningful job offer.

Humanizing the outplacement experience will not only improve the outcomes of those who have been let go, but it will also dramatically improve the experience for those employees who were not let go. Purpose-driven outplacement is more cost-effective for the company, more secure for current employees and more gracious for those who must move on.

Failing to deliver this can have disastrous consequences for your business.

Employer Branding

The scope and objectives of branding for marketing purposes and as an employer may be different, but the audience on either side is still human beings. People wear a variety of hats over the course of a day, a week, a year. At some points they’re operating as employees, consumers, parents, spouses but all are still one person. That is to say that what affects your company employer branding will eventually spread out into your consumer marketing, and the other way around. The individual tactics of branding may be different, but in the end, you’re trying to make a good name for your company so consumers will spend dollars and talent will generate products and services.

A poorly executed outplacement event can have a tremendous impact on your organization’s branding on both sides, no matter how well you try to control the situation. The power lies with the people in this case, too, as a company’s employees have been found to be more trustworthy than a PR department, the CEO, or even an organization’s founder and the stories told by the outplaced individuals and those who remain employed by the company will ultimately be the ones considered accurate.

The Tangled Pushback

As Millennials continue their growing domination of consumer and employee spaces, their habits begin to dominate the markets as well. Facebook is slowly becoming one of the top sources of information for job seekers who want to get a sense of a company’s culture, for example, while 55 percent of consumers complain on social media sites like Facebook about poor experiences. In other words, the two markets are intertwined online, and are moving closer and closer to being a single domain rather than two endeavors. What does this mean for consumers? When former employees turn to Facebook and other social media sites to tell their stories “good or bad“ everybody is reading, and the impact is real.

Sixty-four percent of consumers have stopped purchasing from a brand after hearing about the poor treatment of that company’s employees. One study found that a negative employee experience had a direct impact on consumer behavior: consumers were assigned both negative and positive employee reviews to read before staying at a popular hotel chain. Those who read a negative review gave significantly lower ratings for satisfaction and quality of service and were significantly less likely to recommend the hotel to others even though their experience was the same as those who read positive reviews.

Organizations must be aware that the pool of potential employees is also a pool of potential customers, too. It’s difficult to imagine a person remaining loyal to a brand as a consumer when they feel let down by the brand as an employee. Even the recruitment process can have an impact on consumer behavior. Consider the case of Virgin Media. After reviewing the records of rejected applicants, 18 percent were found to be customers of the brand and six percent switched brands following a poor experience as a candidate. The dollar amount associated with that shift: $6.2 million.

Employee Productivity

If the purpose of reducing an organization’s workforce whether it’s a major restructuring event or a minor cut to increase profitability, then it only makes sense to make improvements to profitability from multiple angles to have the greatest impact. One of those additional angles is retaining the productivity of the workers who are not part of the exit. Remember, these are human beings who may be grateful to have a job following a downsizing event, but they still have anxieties and fears about their own security and stability. Unless these emotions are eased, they will cut into productivity, and therefore reduce the effectiveness of the downsizing.

According to one study, the employees who remained following a downsizing event experienced a 41 percent reduction in job satisfaction, a 36 percent reduction in commitment to the organization, and a 20 percent decline in job performance. Other studies have found a reduction in creativity and innovation following an outplacement event. Layoffs also sever ties between sales personnel and customers and researchers have found that customers are more likely to move to your competitors following a round of layoffs.

All this damage isn’t inevitable. A reduction in workforce can be a profitable decision, provided that comprehensive humanized outplacement services are given to those who have been downsized and that those services extend to those who remain with the company afterward. The workers who remain want to know that their friends and former colleagues haven’t been left out to dry; that they aren’t next on the chopping block; that if they should be up for layoffs they won’t lose their homes, their cars, their hopes, and their dreams. If the outplaced are given a truly soft landing and genuine efforts to ease the transition into a new career, then the decision to downsize can be seen as fair. Morale and engagement can be preserved, customer relationships can be saved, productivity and profitability can actually be boosted. In other words, the real goals of the reorganization effort will be achieved.

The consequence of ignoring the need to provide comprehensive outplacement services is risky. Is your organization exposed? Learn more about how to deliver purpose-driven outplacement services by downloading our free whitepaper, Humanizing Your Outplacement Practices.

Why Outplacement? What You and Your Employees Need to Know

Outplacement services should be about more than helping those who are leaving the company to secure new positions. Instead, a holistic, purpose-driven process is one that approaches the situation with compassion and humanity while keeping the lines of communication open for those who will remain with the company. It’s also more than just a kindness; failing to approach outplacement services in a comprehensive, effective manner can leave businesses in jeopardy of tarnishing their employer brand and experiencing a decline in productivity following the event.

More Than Finding a Job

For individuals who have been outplaced from a company, securing a new position is the obvious priority. What’s less obvious, however, is one of the most significant roadblocks to landing that new job: processing the termination, regrouping and taking the first steps toward a productive job search. The emotional impact of being terminated can be staggering. Thoughts can range from the self-doubt that results when a company that knows your work doesn’t find it valuable enough to keep to fears that arise when paychecks and future plans are now uncertain.

Outplaced personnel are human beings first and foremost, and human beings are natural storytellers. After being let go from a position, people need to be able to talk about how the separation happened to them, how it felt and what their struggles are. They need to hear from others and work with professionals who are skilled at helping people work these events into their history in a way that does not breed long-term anger, fear and resentment.

The objectives of these activities are simple but significant. This group of people must have an emotionally defused answer to the inevitable interview question asking about their previous employer. Without one, many people are destined to self-sabotage and might not even realize it. Plus, the stories outplaced people tell about their experience will hang around your company’s brand for years. This can either be a positive narrative or a dead weight around the organizationâ’s neck.

Maintaining Productivity Moving Forward

Employees who are fortunate enough to remain with the company are likely to be grateful to avoid enduring being let go themselves. They are also very likely to be worried about having to endure the experience in the near future. Without clear and reassuring communication from all levels of leadership, rumors and speculation will abound, tensions will rise, and employee engagement and morale will be deeply impacted.

It is critical that this group of employees is given the benefit of transparency, and leadership can do this by acknowledging the restructuring event and discussing the business reasons for the decision. Leadership should expect the first days following an event to be a bit under the mark in terms of productivity. Be prepared for this by not only allowing for employees to have space and time to talk to each other, but also by circulating members of the HR team throughout the office to answer questions and help groups to reorganize effectively.

By delivering purpose-driven outplacement services to those who are leaving, employers are also providing a layer of reassurance for those who must move forward with the company. When talking to their former colleagues, employees will have an opportunity to truly understand that their friends and former associates are well taken care of something that will help boost loyalty to the company while simultaneously easing fears of another round of layoffs. The result is quickly diminishing effects and a new normal established in a relatively short amount of time.

Employer Branding in the Marketplace

According to one survey, 84 percent of job seekers say the reputation of a company as an employer is significant when choosing where to apply. What’s more, half of all candidates wouldn’t work for a company with a bad reputation, even if it came with a bigger paycheck! Consumers are happy to stand by the workers, too: 64 percent have stopped purchasing a brand after hearing about the poor treatment of the company’s employees. Plus, company efforts to maintain control of the storyline are bound to be futile as one study found employee voices to be three times more credible than the CEO’s when talking about what it’s like working for that company.

Any processes that the company has in place to humanize the treatment of employees will go a long way toward preserving the employer’s brand in the recruitment landscape. When people are choosing which companies to apply to, they will be doing their homework on social media sites and through group discussions on sites like Glassdoor. What will these prospective candidates read about your company? Plus, outplaced individuals are going to land somewhere with your partners, clients, competitors â€” and maintaining your reputation will ensure smoother future interactions with outplaced people, whether that is direct or indirect.

Lastly, even for companies that have not experienced a significant outplacement event, having a system in place to provide robust outplacement services shows both current and prospective employees that your company’s mission and stated values have merit. If you’re trying to ensure that the best and the brightest talent find your workplace enticing, moving beyond the excitement of the hiring and onboarding process to address the inevitable end to the partnership shows that you’re not only a forward-thinking employer, but also a compassionate one.

Compassion is Smart Business

The first quarter of 2019 saw layoffs hit their highest level in a decade 35 percent and very few companies can avoid a major restructuring or downsizing event forever. When it happens to your company, humanizing the process and providing a genuinely soft landing and a smooth transition is critical for the long-term health of the organization. Not only is it a compassionate endeavor for those whose future with the company was cut short, but purpose-driven outplacement services are imperative to preserve engagement, morale and your company’s brand. It’s smart money, too, as high-quality outplacement services can cut the cost of restructuring by more than half, thereby accelerating the financial goals of these types of restructuring events in the first place.

Learn more about how to deliver purpose-driven outplacement services by downloading our free white paper, Humanizing Your Outplacement Practices.

Is Outplacement Still Relevant?

Even in today’s prosperous business climate, the replacement of employees with redundant and/or obsolete skills with outside hires and reducing headcount in sweeping layoffs are strategies as prevalent in today’s workplace as they were in the early 1980’s and throughout the 1990’s. What’s different now is the need for organizations to maintain employee engagement and protect their company brand, both of which are essential to sustainability and growth.

Global competition, digital transformation and market disruption requires a bolder, more nimble talent strategy, where doing the right thing and ensuring a culture of trust and transparency is paramount.

For the most part, employees are no longer to their disposability. But how a company manages a layoff (in groups or individually) by minimizing the impact on those outplaced and on their remaining colleagues is a significant factor that drives employee engagement.

Providing outplacement services to those who have been impacted is a tangible display of corporate responsibility and a culture that values people. It is a compelling attribute that top talent seeks in joining and remaining with an employer. Knowing that there will be help assuages fears and improves productivity and innovation. And the survivors will be resilient post lay-offs and continue to grow and innovate.

Here is a look at how organizations should help separated employees and inspire those who remain to boost morale and focus for the entire company.

Inside the Organization

One serious cause of dropping productivity following a layoff is a pervasive sense of personal violation. Prior to a downsizing action, employees were tied to a shared sense of purpose and relevance to the company. Social connections were made, and individuals acted like meaningful contributors and part of a safe community. These are all positive aspects in the employee community; connecting employees to the company’s mission, vision, and values is a central premise of retention and development programs and gives individuals a sense of purpose beyond simply earning a paycheck.

The trouble lies in how the group processes a merger, reengineering effort, or other events that lead to downsizing. For those with a strong connection to the workplace community, powerful emotions such as guilt, anxiety, depression, fear, and anger can arise. These employees can become risk-averse and emotionally drained which can then lead to a loss of productivity.

There can also be a sense of betrayal among those remaining. Some may start to believe that the company’s social connections, brand, and mission are a sham. According to one survey of surviving workers of companies that encountered layoffs in the last six months, 69 percent said the quality of the company’s product or service has since slipped. Almost 90 percent said they are less likely to recommend the organization as a good place to work, and 61 percent said they believed their company’s prospects will worsen.

Failing to address these fears, anxieties, and bleak outlooks can be dangerous for any organization.

Helping the Separated

When reducing the workforce becomes inevitable, the most important thing for companies to do is to ensure the process is clear, controlled, and transparent. Inconsistencies and chaos will only feed into any negative emotions. The managers of those who have been chosen to leave should start by acknowledging the work and accomplishments of those individuals. Be consistent that the layoff is not personal the position, not the person, is being eliminated.

Then, straightforward and specific reasons for the necessity of the cuts should be given. People may not be happy with the circumstances, but if they can understand the why behind the moves, they are less likely to be fearful and anxious. Lastly, be sure that managers remain available for questions for as long as necessary, but don’t drag out the process unnecessarily. Some people will understandably want to leave quickly.

The Harvard Business Review also suggests supporting these employees as they find new solutions. Outplacement efforts that help people retain their standard of living, stability, family life, and self-esteem are also critical to the long-term prognosis of the company as well as the individual. Plus, making sure the separation is smooth and as painless as possible will also show those who remain that the company is concerned with everyone’s well-being and that even though downsizing must happen, those who are let go won’t be left out to dry.

Caring for the Those That Remain

In many cases, people feel uncomfortable airing emotions in the workplace, but the best way to help employees move forward is to facilitate an emotional release. Leaders must be willing to take a risk and open up with employees either in groups or one-on-one sessions to talk or to just listen as others vent their fears and frustrations. Remember that important social networks have been disrupted so leaders should be encouraged to increase communication and contact as those networks are rebuilt.

If some employees are still feeling angry, fearful, or depressed, keeping those feelings inside isn’t serving anyone. Encouragement to air these emotions should be given, even for those who cannot bring themselves to do it at work. Friends, spouses, clergy, or even a therapist can help people work through their guilt, or any other anxieties that remain.

To address the ongoing fear of additional layoffs, companies must be clear and set expectations and then stick to them. One study found that the fear of looming layoffs can be more disruptive than the actual process so consider a moratorium on future downsizing even if it’s only temporary as everyone regains their footing.

A Necessary Process

The depth of impact that downsizing has can be difficult to see until it’s over. However, there can be some positive outcomes that emerge from such changes. For those who remain, once they feel stable in their position again, a feeling of resiliency can develop as they take stock of their lives and careers and recapture their self-esteem.

For companies that are successful at creating a transparent process that although unpleasant, seems fair to the remaining employees, enjoying a restructured workforce that has been re-centered around goals and customer service can serve as a new anchor to keep things on an even keel as the new group heads into the future.

If you’re wondering whether your outplacement program positions your company and employees for success, or you would like to review and fine-tune your current design, please contact Mike Milsted at 262-786-9200 or via email at mmilsted@lak-group.com.