REWARD
What is outplacement support?
Danny Done, managing director of Portfolio Payroll, discusses how employers considering redundancy action can benefit from providing outplacement support
T he cost-of-living crisis continues to put pressure on business operations and finances. Unfortunately, this has led to many considering redundancy action because of a downturn in work or inability to continue to meet high costs. Completing a redundancy exercise involves following a full and fair consultation process. However, even if this is fulfilled, claims may still arise if staff don’t believe there was meaningful discussion through a genuine redundancy situation. As such, one way to overcome this is to offer outplacement support. The purpose of outplacement training is to provide practical advice to help redundant employees find new employment. This includes support with: l creating or updating an effective CV l preparing for interviews l navigating job boards by identifying the best way to search for new jobs, building soft skills, such as confidence, resilience and communication. This benefit is likely to be especially appreciated by those who haven’t looked for new employment for some time, as they’re likely to be unfamiliar with current recruitment practices, which could put them at a disadvantage when searching for a new job. Since outplacement training can be delivered in person or online, and by an internal team or external consultant, it’s
accessible to all employees. As the number of home and hybrid workers continues to rise, the flexibility of the support allows it to help all, regardless of their working location or pattern. While there’s no legal obligation to provide such support, it can significantly help employees at a vulnerable time in their lives. It can also reinforce an employer’s good reputation and enhance the psychological contract with remaining employees if emotional and practical assistance is provided to those who need it. As outlined above, where leveraged accordingly, it can also be used as a means of mitigating any potential risk associated with the redundancy dismissal of the employee. By supporting employees in their search for future employment, employers are increasing their chances of finding a new job. As a result, if a claim was raised (for example, for unfair dismissal), any compensatory award may be reduced, as the loss of earnings due to the dismissal would be limited. Making it a priority to help employees find alternative employment helps promote the image that the organisation is genuinely disheartened at having to make redundancy dismissals and wants to minimise the impact a loss of job would have on them, both personally and professionally. This
focus boosts the effectiveness of the redundancy consultation, as it shows there’s a legitimate redundancy situation for which the employer is engaging in meaningful discussion. It can also help support the view that there are no other alternatives internally (which employers must consider), so assistance is being provided to look for external options. Again, this adds to the fairness of the process and limits the risk of successful claims being raised. In addition, helping employees as they leave can ensure they go with a good overall impression and memory of the organisation. Where this happens, employees are more likely to be positive towards the business in the future, so less likely to raise tribunal claims. If the organisation’s situation were to change and they later needed to rehire staff, it can boost their recruitment strategy if ex-employees are still positively engaged with the company. Considering the alternative, staff who leave with a sour taste are more likely to talk negatively of their employer and discourage future employees from applying for a role. When people talk in such a way, it can also limit the employer’s supply and sale opportunities, due to poor reputation. n
| Professional in Payroll, Pensions and Reward | February 2023 | Issue 87 50
Made with FlippingBook - Online magazine maker