In today's volatile and uncertain economic environment, organizations across many industries are facing the difficult decision of restructuring and laying off employees. While these decisions may be necessary for a company’s survival, growth and success, they can have significant impacts on the individuals involved and the organization as a whole.
Investing in human-centered outplacement services is a powerful way for an organization to demonstrate its commitment to its people. This commitment not only supports those exiting the organization but also has ripple effects that extend far beyond this group. It communicates to remaining employees, future recruits and clients that the organization values its people and their success, thereby boosting morale, productivity, satisfaction, engagement and retention even during challenging times.
By showing genuine care for departing employees, organizations reinforce a culture of support and respect that benefits the entire workforce and strengthens their long-term success and competitiveness.
Risks During Layoffs, a Reduction in Force and Restructuring Events
A reduction in force or restructuring event can pose significant risks to the organization and its people. According to Harvard Business School professor Sandra Sucher, it can take years for companies to bounce back from poorly handled layoffs. Key risks include:
- Financial Hardships
Job loss is one of life’s top stressors, even surpassing major life events like divorce or the death of a close friend. The immediate financial strain on employees can be devastating, as they may struggle to meet basic needs or support their families. Even after finding new employment, many face a 30% salary drop, contributing to long-term financial instability. - Psychological Hardships
Job loss creates significant emotional and mental stress, often leading to feelings of worthlessness, anxiety and depression. Experts note it can take up to two years to fully recover from the emotional toll of job loss, with an increased risk of suicide by 1.3 to 3 times. The fear and uncertainty surrounding future employment can exacerbate these mental health challenges. - Loss of Productivity
Layoffs often lead to decreased productivity among remaining employees. The loss of colleagues creates uncertainty, affecting morale and motivation. Additionally, those who stay may face increased workloads, which can result in burnout and hinder overall organizational performance. - Higher Turnover
Layoffs create a ripple effect that increases the risk of voluntary turnover. According to Harvard Business Review, a reduction affecting just 1% of the workforce can increase turnover by 31%. Feeling insecure, remaining employees may seek stability elsewhere, leading to higher recruitment and training costs. - Damage to Organizational Reputation and Employer Brand
If employees are let go without sufficient support, it can harm the organization’s reputation. This can make it harder to attract top talent in the future and damage relationships with clients and partners who may perceive the company as lacking in ethical responsibility.
What is Outplacement, and What’s Included?
Outplacement plays a critical role in supporting employees during their transition out of an organization, often at no cost to them. These services provide the tools and guidance individuals need to move forward with confidence and pursue new career opportunities.
To reduce the risks associated with layoffs, leading outplacement providers take a human-centered approach — one that prioritizes each employee’s well-being and future success. By focusing on personal experiences and individual needs, this approach creates a more supportive and empathetic transition.
An effective, human-centered outplacement program is tailored by industry and career level and typically includes:
- Emotional Support
Outplacement programs often include access to certified career coaches who offer a safe, confidential space for individuals to work through the emotional impact of job loss. This kind of support plays a key role in helping people process what’s happened and begin to focus on what comes next, thereby reducing the psychological toll of job loss.
- Career Guidance
Coaching is a central part of outplacement. It helps individuals reassess their strengths, interests and long-term goals. Coaches offer personalized insights and expert strategies to support people as they explore new directions.
- Skill Building
Losing a job can also present an opportunity to grow. Outplacement frequently includes access to training and development resources — ranging from technical upskilling to soft skill workshops — that help individuals stay competitive in a shifting and volatile job market.
- Job Search Support
A practical, hands-on job search strategy is a core element of outplacement. This includes help with resumes, interview prep, LinkedIn profiles and networking. Tailored guidance helps individuals move forward with confidence and boosts their chances of securing a new role faster.
- Networking Connections
Many high-quality outplacement programs open doors to professional networking opportunities and potential employers. These connections can lead to unadvertised roles, industry insights and faster reentry into the workforce, mitigating the stress of a drawn-out job hunt.
- Quicker Reemployment
One of the most tangible benefits of outplacement is reduced time spent unemployed. With access to the right tools, coaching and guidance, individuals can transition more quickly into their next role — restoring financial stability and a renewed sense of purpose.
How Outplacement Demonstrates Support for Departing Employees
Providing human-centered outplacement services is a clear sign that an organization respects and values its departing employees. Through tailored support and resources, companies help individuals not only prepare for future opportunities but also navigate the emotional aspects of the transition. This compassionate approach reflects a genuine concern for employees' well-being beyond their tenure, building goodwill and maintaining positive relationships.
Moreover, when departing employees feel supported in their career transitions, they are more likely to speak positively about their experiences. These departing employees often become ambassadors for the organization, sharing their positive experiences and enhancing the organization’s employer brand. As a result, the organization attracts top talent in the future, reinforcing the value of providing robust outplacement services.
How to Help Remaining Employees: Boosting Stability and Morale with Outplacement Support
While outplacement clearly benefits departing employees, it also has significant positive effects on those who remain with the organization. When remaining employees witness their colleagues being supported through outplacement services, it reassures them that the company is committed to its people, even in times of uncertainty. This visible support fosters a sense of security and boosts morale, which is critical for maintaining productivity and engagement during a reduction in force.
Furthermore, when employees feel valued and supported, they are less likely to seek new job opportunities, reducing turnover and the associated costs of recruitment and training. By demonstrating care for both departing and remaining employees, the organization creates a loyal, motivated workforce that is better equipped to drive long-term success. Ultimately, the morale boost that outplacement support provides to remaining employees helps strengthen the overall organizational culture, keeping the team focused on growth and performance.
Communicating Support to Clients with Outplacement Services
The benefits of outplacement extend beyond the organization’s employees. How a company handles layoffs and restructurings also communicates a powerful message to its clients. By providing outplacement services, the organization signals to clients that it is committed to ethical business practices and the welfare of its workforce. This builds trust and reinforces the organization’s reputation as a responsible and compassionate business partner.
This strong ethical leadership helps maintain client relationships and fosters long-term loyalty. Clients value working with organizations that treat their employees well, especially during difficult times. By offering outplacement, companies demonstrate stability and responsibility, which can lead to stronger partnerships and new business opportunities. The positive image cultivated by outplacement services can enhance the organization’s brand reputation in the market, making it a preferred partner for future business ventures.
Invest in Human-Centered Outplacement Solutions
Human-centered outplacement is more than just a support mechanism for departing employees — it’s a strategic investment that benefits the entire organization. It shows that an organization understands how to support employees through every stage of the employee lifecycle. By caring for both those leaving and those staying, and by communicating this commitment to clients, outplacement demonstrates that people are a company’s greatest asset. Organizations that prioritize the well-being of their employees — no matter their status — are better equipped to navigate challenging times, attract top talent and maintain long-term success and competitiveness.
To discover how Right Management can effectively support your people through change, visit our Outplacement Solutions page. If you like what you see, please contact us.
Megan Duca, NA Enrollment Operations Director
As the North America Enrollment Operations Director at Right Management, Megan Duca brings more than a decade of expertise in building scalable, high-impact systems that support seamless customer experiences. Known for balancing empathy with strategic execution, Megan ensures every enrollment process is efficient, personalized and aligned with client needs. She is driven by a passion for guiding individuals through transition and helping organizations extend meaningful support during moments that matter. Megan joined Right Management in 2007 and resides in Sewell, NJ.
