Many organisations turn to outplacement support following workforce restructuring. However, when considering this investment, questions can arise: Is it worth the money? How can we measure the effectiveness of outplacement? And does it delivers real value?
Why organisations choose outplacement support
Redundancies can be challenging for both employees and employers. In an era where company values, employee wellbeing and corporate responsibility are highly scrutinised, providing outplacement services demonstrates an organisation’s commitment to doing the right thing. Outplacement helps employees navigate career transition and reduces potential negative fallout for businesses.
The planning phase of an outplacement project is crucial. Defining an organisation’s needs and addressing the unique circumstances of its employees are essential to ensuring the project’s success. An experienced and specialist outplacement provider will work closely with human resources teams and other internal stakeholders to deliver tailored services, effective project management and timely, accurate reporting throughout the process. Equally important is making sure employees are aware of and understand the support available to them after redundancy.
Why it’s important to measure the effectiveness of outplacement
Outplacement requires a financial investment at a time when organisations are making difficult decisions to reduce headcount and manage costs. As with any business investment, companies must ensure that outplacement services deliver tangible results for both employees and the organisation. This can include faster reemployment for former employees or enhanced brand reputation.
Another result can be reduced strain on HR teams during difficult times. Measuring outplacement effectiveness helps determine if the service is adequately reducing workload on internal teams.
Tracking metrics also allows organisations to identify areas where the outplacement provider could improve, ensuring that services are tailored to meet specific organisational needs.
How can you measure the effectiveness of outplacement?
You can evaluate the value and effectiveness of outplacement services using several indicators.
1. Employee engagement levels
One way to measure the impact of outplacement is to monitor how actively employees engage with support. Outplacement programs often include services such as career coaching, resume writing and interview preparation. The higher the engagement levels, the more likely it is that employees find such services beneficial.
Ways to assess engagement include:
Take-up rates: How many employees opt to use the outplacement services.
Program completion: Are employees completing the outplacement program, attending coaching sessions or participating in workshops?
Feedback: Post-engagement surveys provide insights into how useful employees find the services, allowing for adjustments to be made if necessary.
2. Key metrics and coaching hours
Quantifying the services an outplacement company provides is another way to measure success. Tracking activities demonstrates the value, flexibility and effectiveness of support employees receive.
Every employee’s experience is different, and some will be motivated to use more help than others. An outplacement company can provide insights such as the average number of coaching hours it delivered (more coaching hours can reflect a more in-depth service).
Another indicator is the number of group workshops delivered. Practical sessions on topics like interview preparation and networking can significantly increase employees’ chances of securing a new role.
3. Time to reemployment
Another measurement outcome is how quickly employees secure new positions after engaging with outplacement services. The time it takes an individual to make that next step can vary significantly. However this metric can demonstrate that the support was effective in preparing them for the job market.
A further metric is the quality of new roles – are employees finding comparable positions in terms of pay, responsibilities and career advancement?
4. Protecting brand reputation
Managing redundancies poorly can negatively impact an organisation’s brand reputation. Companies can mitigate some of the reputational risks associated with layoffs by providing outplacement support. Measuring the effectiveness of outplacement in this area can include monitoring social media sentiment, public reviews on job platforms and feedback from remaining staff.
Additional ways to assess brand impact:
Employee feedback: Gather anonymous feedback from employees about their perception of the redundancy process and the value of outplacement services.
Future recruitment success: Monitor whether the company continues to attract top talent, indicating that the organisation’s reputation has remained intact.
5. Value for money
Measuring the ROI from outplacement support can be difficult to quantify directly. How does an organisation measure the long-term financial benefit of investing in a former employee? Factors like reduced legal risks (employees who feel supported are less likely to engage in legal action following redundancy), positive brand perception and lowered workloads for HR teams can demonstrate value.
Is outplacement a worthwhile investment in today’s market?
In today’s market, where organisations are under pressure to adapt quickly to changing conditions, outplacement services offer a caring, practical and effective solution for supporting workforce reductions. By measuring engagement, outcomes and value, companies can ensure outplacement is a strategic investment that protects both the business and its employees.
Our outplacement provider was very transparent about what they delivered to our impacted employees. They shared some really positive outcomes that I reported back to our executive team, which helped me to get the green light to continue offering this valuable service to employees.
Pete, HR Director Melbourne