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The current pandemic and recession came as a surprise to all small business owners. The ABS estimates that around 2.3million people were affected by job loss or a reduction in hours between April and May 2020. The numbers have only risen since. NAB’s Chief Economist Alan Oster predicts that widespread redundancies will continue through 2020. This constant unease leaves management and HR working under fragile and stressful circumstances.
Redundancies are inevitable and as a small business owner you need to know how to handle them properly. There is a difference between announcing a layoff and showing ex-employees the door versus supporting ex-employees in a meaningful way. You can make redundancies better by engaging an outplacement support service.
What is outplacement?
When faced with having to part with a percentage of your workforce, outplacement services will help you assist those employees in moving into other career opportunities. The outplacement service may include:
- Coping mechanisms to deal with change
- Career reevaluation
- Resume writing
- Job seeking
- The hidden job market
- Networking
- Skills for interviewing
- Skills for working with recruitment agencies
- Psych testing
- Reference checking help
- Negotiation skills
- Transitioning to retirement
How can outplacement assistance benefit your business?
Using an outplacement service has multiple benefits for business.
Ultimately, redundancy should be as smooth and amicable as possible. But if your redundancy process only consists of notice and then a walk to the door, you risk multiple consequences. Including outplacement assistance as part of your redundancy can benefit your business by:
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Securing your reputation
Giving ex-employees access to an outplacement program is good for company values. The way you treat your staff reflects your business standards to the public, your customers, potential customers and future employees. In the age of social media, ex-employees will be quick to air their grievances online, tarnishing your business’s reputation.
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Save money
An outpatient service can be expensive, but if you look at outplacement with a different perspective, you’ll see how it is in your financial favour.
Keeping your reputation intact means you won’t lose customers or potential customers. Additionally, you won’t have to spend more than usual on finding new employees in future because good talent will WANT to work with you.
Outplacement services can also improve morale, boosting productivity and revenue.
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Improve productivity and morale
When it comes to redundancy, we can’t forget the staff who stay. The staff who remain are likely experiencing workplace survivor syndrome – feeling guilty about why they stayed and their workmates didn’t. These remaining employees absorb everything and when their workmates are made redundant without any support, they may become bitter, Show your remaining employees that you value your staff and that you are supportive. Give them hope for the future and give them a reason to stay.
As you can see, your company’s internal and external reputation is a significant factor with redundancy. It can hit you from any angle if not handled sensitively. A positive during these testing times is that outplacement services can be handled entirely by an external business, leaving you and your remaining staff to focus on what’s important to keep your business running. It’s a win-win.
“The opinions expressed by BizWitty Contributors are their own, not those of BizCover and should not be relied upon in place of appropriate professional advice. Please read our full disclaimer."
