Don’t Let Outplacement Firms Damage Your Brand

The taboo word of layoffs is now (unfortunately) becoming main stream as organizations continue to shed workers. There is no easy way to let go of staff, and to help laid off workers get back on their feet to find new jobs or acquire new skills, many of us are turning to outplacement firms. Recent studies show that business is booming for these services; two in three organizations with layoffs have used outplacement services. But before we wave goodbye to our departing colleagues, are we sure that we’re putting them in good hands?

As outplacement firms deal with increasing volumes of layoffs, some workers using these services find their experience with these firms to be too impersonal, too brief, and too careless. And while for some former employers, providing outplacement services might be a check-the-box step for managing layoffs, consider this: former employees, just like potential candidates, are carriers of your employment brand. If a laid off worker has a poor experience with the outplacement firm used, this could translate into bad PR for their previous employer as well—whether it’s burning the bridge for future rehires (members only), deterring future family, friends, and acquaintances from applying, or sharing their experiences on Web 2.0 channels for the world to read.

To protect your employment brand and reputation during displacement activities, select and partner with an outplacement vendor as you would with vendors that you use frequently and over time. Here are few, for starters:

1) As with any type of vendor selection process, conduct an RFP with the vendors that you are considering. Albeit this selection process and time frame may be more abbreviated, it is still worthwhile and important to consider the credentials of more than one vendor.

2) Speak to customer references of these vendors, preferably those not provided by the vendor themselves, to get a sense of the type and quality of services offered. Also, consider speaking to people who have used their services, particularly those who are in the same employee population as the laid off workers from your organization.

3) Consider not only the historical performance metrics of the outplacement vendor that you’re working with, but also performance metrics of how your former workers are positively (or negatively) impacted by this vendor. If there any negative experiences documented, be prepared to address any potential areas (members only) that may damage your reputation.

Written by: Xi Chen