Executive Outplacement: Is It Really Necessary?

executive outplacement

In workspaces, colleagues come and go. And it’s the leaving that can get quite messy as the unfortunate outgoing employees face the bittersweet reality of loss and opportunity. It’s something we don’t want to see, let alone be the messenger of the bad news.

Thankfully, companies have the option to help in their employees’ transition through outplacement programs. It is a service dedicated to assisting former employees in preparing new jobs.

Usually, companies offer this solution to rank and file people and those in middle management positions. But what about CEOs and other executives?

Like regular outplacement, executive outplacement aims to assist in finding job opportunities. But this time, it’s intended for those higher up on the ladder.

There are many choices and possibilities for regular employees when they transition. On the other hand, outplacement for executives is more complex. Not only do top management individuals need to find a job that is similar in level as their previous one, but they also have fewer choices. Consequently, it requires more skill and time in assisting them with their adjustment, which can be costly for the company.

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So, is executive outplacement still necessary considering the requirement in cost, time, and effort?

Executive outplacement is just as important as regular outplacement. Like any other employee, executives dedicate much of their time and energy to the company’s betterment and deserve to be treated with care even as they exit.

Moreover, it’s more than just doing what’s right. The executive outplacement is a necessary and small price to pay in exchange for the benefits outlined below.

Reduces Negative Impact To Reputation

People are unpredictable. You never know what an unhappy individual might say or do. That senior executive you let go abruptly might not take it well and swear vengeance. The last thing the board would want is for your former higher up to badmouth your company and tarnish its hard-earned reputation.

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Even if it isn’t the nature of the executive to go low as described above, you missed the opportunity to create an advocate out of the outgoing person. This small action can have a rapid and detrimental effect on the business, which can be hard to recover from.

Company Values and Compassion

Giving your former executives a hand in their next step as they exit exhibits the company’s compassion. It shows that you value the welfare of your employees and align your actions with your company values.

By how top executives see it, the package serves as a consolation perk. Although it meant that they must leave after the program’s completion, everything that comes with it is a valuable keepsake they would appreciate as they move forward to their new world.

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Keeps The Morale Of Surviving Employees

Having an outplacement program within your organization has been proven to increase the engagement levels of employees. This sense of security allows them to work efficiently without worrying about the stability of their position. Knowing that the company will support them until the very end, they will start to focus more of their energy and headspace on their work and be more engaged.

Key Takeaway

Executive outplacement could cause the same or a bigger impact on your company’s reputation of handling layoffs. While everyone in these uncertain times would understand the need to cut costs, it’s still an investment and a gesture of goodwill to assist outgoing employees. When the economy is back on its feet again, this solution could result in more competitive talent acquisition, as the most skilled candidates would yearn to be part of a corporation that takes good care of its employees.