Enhanced Corporate Image
The public perception of a company’s reputation and brands often takes a hit when widespread layoffs are announced. While some ill feelings are unavoidable, there are ways to mitigate the damage that terminating employees has on the overall business reputation. Hiring a corporate outplacement service to assist displaced workers with their career search is one way that enhances the corporate image in the face of negativity surrounding layoffs. Doing so will greatly improve the perception of the business in the minds of displaced workers, remaining employees and the various external audiences in the community.
Public companies have a lot more damage control to do during workforce reductions than private companies. Not only do they have to worry about the internal and external perception of the company’s reputation, but they also have to answer to the company’s investors. However, in a recent survey of public companies, only 19 percent communicated layoffs to their investors. Communicating major staffing changes to investors is vital. By adding that you have hired a corporate outplacement service to assist displaced workers is a statement that your business still cares. After all, investors may not be involved in the day-to-day activities of the business, but their reputations are still strongly attached to the business name. Caring for displaced workers ensures that the investor’s names are not tarnished during the layoff process.
Local communities are also widely affected by workforce reductions. This is especially true in smaller communities. One mass reduction at a manufacturing plant can have devastating effects on the families within the community and the local economy as a whole. That’s why businesses must communicate to the community that they are mitigating the layoffs by providing top-level career search assistance using an outplacement service. Additionally, much of the local community includes customers and potential customers who can draw negative conclusions about your company’s products or services after a layoff. By providing career assistance to employees, and advertising it well, companies can effectively communicate that the displaced workers were well taken care of.
Future Job Candidates
The more negative press and gossip that occurs after a layoff, the harder it is to hire new workers in the future. Job seekers simply don’t want to work for a company that may lay them off with no means to support themselves. This seems cold and cruel and does not mesh with the family environment that many companies try so hard to create. By taking care of displaced workers through outplacement services, the company demonstrates that they aren’t leaving former workers out in the cold. Instead, they are doing everything possible to get them back on their feet. This type of caring corporate environment is one that will attract future candidates rather than repel them.