Americans are feeling the pressure of soaring inflation, and while wages are rising, they're not keeping up with the inflation rate — which hit a record high of 9.1% in June and settled to a more moderate (relatively) 6.5% at the end of December 2022. Employers are seeking alternative ways to enhance their employment offerings while also avoiding steep salary increases, including making changes to their benefit packages, in order to attract and retain talent. The most commonly offered benefits include medical, dental and vision insurance, access to an employer-sponsored retirement plan, and paid time off (PTO). However, employers can help deliver a more attractive benefits package by thinking outside the box.
One such unique benefit offering is outplacement services for outgoing employees, which can not only help the employees but also positively impact the employer's bottom line. These types of services allow a company to take care to help provide departing employees with as positive an offboarding experience as possible through job coaching, employment training, job search tools, mock interview tools, progress reporting, and more. Ultimately, the employee often feels more confident as they reenter the job market feeling better supported by their previous employer, no matter the departure circumstances.
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Why reemployment services might be one of the most important but most overlooked benefit offerings for employees
Companies with Gen Z and millennial talent should understand that those groups are particularly concerned about their financial situation and are likely to carry more anxiety on the topic in comparison to their Gen X and Baby Boomer counterparts. According to
As the economy continues to fluctuate, more and more employees are finding themselves out of a job. As a result, many workers are left struggling to navigate the job market on their own. This can be an especially daunting task for workers who may have less of the skills and experience needed to compete in today's workforce. Without adequate support, these individuals may find themselves unemployed for an extended period. This not only negatively impacts their financial stability but can also affect their mental and emotional well-being.
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When it comes to layoffs and terminations, most believe that more could be done to help those who are affected. In fact, according to a Harris Poll online survey conducted between March 2-4, 2020, 85% of Americans think most companies don't provide enough help to employees when laying them off, and more than four in five Americans think outplacement should be offered to every employee who is laid off by their employer.
If a departing employee's company has offered them reemployment or outplacement services as an added-value benefit, that individual likely feels more equipped to succeed in their job search, regardless of their experience level. Focused, measurable post-termination reemployment services can include job search tools, a personality profile, individualized support, a step-by-step resume builder, video mock interview tools, detailed progress reporting and group learning options. All of these resources go above and beyond to assist terminated employees with getting back to work more quickly.
How employers stand to benefit from offering this service
There are two primary ways that employers stand to benefit from offering reemployment services: the potential for reduced unemployment insurance costs and improved brand reputation. The first is fairly simple but can make a big impact. Even in this job market, the number of people that are unemployed for over 27 weeks is hovering at 1.1 million. By helping to reduce the cumulative time that a terminated employee is unemployed, employers can help reduce the number of unemployment claims filed, mitigate costly employment lawsuits, and possibly reduce their unemployment tax rate.
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The second way that employers can benefit from offering reemployment services is more nuanced but could potentially have more of a long-term impact than the first. As the old saying goes, "you're only as good as your word." And in today's business world, brand reputation is more important than ever. A positive brand reputation can help employers attract and retain more top talent, win over customers, and help earn the trust of the community. Conversely, a negative brand reputation can often lead to a decline in sales, a potential exodus of employees, and a loss of community support. By investing in outgoing employees, companies are demonstrating a commitment to the local community and helping to generate more goodwill among consumers. When separated employees feel valued and supported, they are more likely to speak positively about their former company and can help to ensure that its reputation remains strong.
A company's reputation is important for many reasons. It can affect everything from how easy it is to attract top talent to how likely customers are to do business with them. A bad reputation can also damage relationships with outgoing employees. With a diminished employer brand, it can be harder to convince talented employees to come back. This "boomerang talent" is especially valuable, as they already have first-hand knowledge of the company and are more likely to maintain loyalty.
By providing outplacement or reemployment services, employers can not only improve their reputation and potentially save money on unemployment costs, but they will also demonstrate commitment to former employees while helping ensure the continued attraction of top-quality talent.
