When an employee is terminated, the blow of getting fired can be lessened by a severance package. Typically a severance package works by providing additional pay based on the months or years an employee has worked for the company. Sometimes it is done by providing 2 weeks pay for every year of dedication, but there are a variety of different severance package options that employers provide.
Getting fired isn’t so bad when a severance package is offered, but what happens when the severance money runs out and you are still out of work? Finding a new job can be a major challenge; this is why every employer should provide employee outplacement services along with or instead of severance.
“Give a man to fish, or teach him how to fish”
This doesn’t exactly apply to severance vs outplacement, but it is pretty darn close. With severance, you are quite literally handing money over to your ex-employee to appease the terrible experience of losing a job. But with outplacement, you are instead giving the tools and resources to find the next steady paycheck.
What’s better, a steady paycheck (that you have to work for, keep in mind) or one that is just given to you, but ends after a month or two?
Outplacement services provide essential career-building tools
If you’re not entirely sure about what outplacement is, the main thing you need to know is that it helps your terminated employees to find new job opportunities. This is done in a few ways – it depends on the outplacement agency you choose to partner with. In general though, every outplacement service provides resume support, a free cover letter, and interview coaching.
The top outplacement agents, however, provide even more additional support. This could be in the form of career counseling sessions, professional profile updates (LinkedIn), a mock interview session, and an allotted support period. The time frame that support is provided depends on the service you choose as well as which packages they offer.
Severance packages alone don’t boost the company image
Of course the main motive of providing outplacement should not be to keep your company image sparkly and shiny. But you can’t deny that it is an added perk. When you fire someone without giving them additional help, they’ll typically just pack up their desks and be on their way without another word.
Unless it is in the form of negative words left on Glassdoor or another review site or bad-mouthing the company to current employees. But if you offer help from outplacement professionals, chances are your ex-employees won’t say one negative thing about you. In fact, they’ll probably see you in a positive light, even after the firing.
More people will actually want to work for you
When potential employees know about the provision of outplacement and that you truly care about your workers well being, they’ll be more keen on the idea of working for you. No matter how “cool” and laid back your work environment is, there is nothing that compares to the caring nature of an employer.