HR must act now to understand the commercial value of outplacement

Most companies who use outplacement services do so because it makes good business sense, but also because they care. So why then do so many companies who make this investment fail to follow up effectively and truly analyse the return on their investment?

Asking for feedback directly from former employees is the simplest way to establish whether an outplacement company is delivering the quality of service you want for your leavers.

Although the outplacement provider is focused on meeting the needs of the individual, the employees’ perception of their former employer is also influenced by the quality of service received. This makes it essential for HR professionals to be more proactive in ensuring that their corporate values are genuinely reflected in the “customer experience” of outplacement services.

HR professionals have an important role to play, especially at a time when this type of service is under the spotlight. In the UK alone, 1 in 7 workers lost their jobs during the recession. The types of outplacement service purchased varied from the high quality – and more costly - bespoke solutions through to the cost-driven, technology led solutions which were procured en masse.

Beyond treating the employee well during a challenging time of personal transition, outplacement is also about ensuring that there is goodwill towards the organisation. The ex-employee may remain a customer, but moreover is likely to maintain relationships with current employees. A bad experience will be known and spreads through an organisation. This reflects poorly and has the potential to impact the bottom line, as those who remain lose confidence in their employer.

Obtaining feedback does not have to be complicated; a simple survey developed in-house will suffice. There are 8 key areas which should be tested:

1. Time taken to see a coach
2. Satisfaction with this interaction
3. Whether a clear plan was put in place on which both coach and employee agreed
4. The most valuable part of the outplacement process
5. The least valuable part of the outplacement process
6. The follow up service from the coaches
7. How the process could be improved
8. Employee’s perception of the business since undertaking the outplacement

HR professionals may have limited time to make contact with former employees, especially if the change process is ongoing for an extended period. There may also be a natural concern about how contact with their now former employer may be perceived, especially if they have expressed negative views about the process. However, these concerns must be considered alongside the investment the business has made in outplacement services. In addition the reputational impact of a poor outplacement experience justifies allocating resources to ensure that what you are offering is commercially beneficial.

Measuring ROI on outplacement is notoriously difficult, its not just about quantative measures such as how long it took employees to find a new job, but equally about qualitative measures such as the employees experience and how it helped them emotionally and psychologically. In addition, a professional career coach will ensure that key skills learned by the participant during this process are embedded for future use in managing their careers.

Although all outplacement providers claim to offer solutions to the uncertainties facing displaced workers, there are most definitely differences in participants’ experience of the service. A poor experience leaves employees feeling frustrated, disengaged, and abandoned. While a low cost, low touch, option may be attractive when procured, the repercussions from dissatisfied ex-employees sharing their disappointment with those who remain, can dwarf any financial savings. Conversely, a positive experience brings broader employer reputational benefits. With the right support most people will achieve their goals. When this happens, any resentment towards their former employer will be limited, short lived and even reversed.

Only by soliciting direct participant feedback can HR teams hope to get a true understanding of what’s been delivered. No company can afford to spend money on services where the outcome to both the business and individual remains largely unknown. HR professionals and quality Outplacement providers must work more closely together.