The Importance of Maintaining an Outplacement Policy

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Feb 1, 2007 - OI Partners

Most organizations have a written policy on the severance packages offered to departing employees. When large reductions in force occur, outplacement services are usually provided in a similar fashion, with service level variations based upon tenure and position. Does it make sense to have an outplacement policy in place when a significant RIF is not imminent? We believe organizations gain several benefits from this practice:

1. Assures equity across the organization. A formalized outplacement policy reduces the impact of emotionally charged decisions regarding the transition provisions for terminated employees. The consistent and reasonable treatment of employees who are leaving the organization reduces the risk of staff retaliation and attrition because of perceived or real management inequities.
2. Expedites the delivery of services. An outplacement policy makes an unexpected transition a more seamless event for both the organization and the impacted individual. This kind of responsiveness makes a strong statement to remaining employees regarding the company's concern for transitioning staff.
3. Provides an objective platform for success measurement. A periodic review of the benefit and value of outplacement services is good vendor management. These reviews are much more productive when there is more consistency in the levels of outplacement programs being delivered within the organization.
4. Creates continuity of value. Given the frequency of internal management and leadership changes within most organizations today, an outplacement policy reduces misunderstandings and assures continuity of execution and value. This policy also puts teeth into the service provider's responsibility as market forces and personnel changes occur within their organization as well.

Although market trends continue to focus most organizations on the retention of talent, the need to transition talent continues to be a component of developing a higher performing organization. We invite you to consider the benefits of standardizing your outplacement offerings for those unforeseen transitions that have a way of surfacing when you least expect them.

Jeff Trautman is vice president/general manager of OI Partners-The Brighton Group (Bellevue, WA). He can be reached at 425-451-3929 or jtrautman@oipartners.net