How Career Development and Career Transition and Outplacement Services drive business growth.
The Canadian government has set up strict rules for both temporary and permanent layoffs. This is a good thing. When we know better, we do better, and this is key to running a sustainable business. Additionally, the unemployment rate has reached an all-time low of 5.2% for youth and 4.3% for those between the ages of 25-54. While these stats are good in that a lot of people are employed, job loss is still on the minds of many. From a business perspective if your employees are concerned about losing their jobs, quite frankly, they’re distracted and not focused on business goals or deliverables.
It begs the question, can an efficient career development and career transition and outplacement system help curb this insecurity? More important, does it make financial sense for your organization to go the extra mile? Finally, if you do make this investment, how does it drive business growth? This article breaks down both career development and career transition and outplacement and will help you make the right decision on investing in one or both.
Let’s start with career transition and outplacement services.
What is career transition and outplacement?
Career transition and outplacement refers to a program that provides assistance for employees who are leaving their jobs involuntarily or being laid off from their positions. The type of outplacement service can vary greatly, but typically it is a short-term counselling service that helps the employee prepare for life after their relationship with your organization as well as connect them with potential employers.
This type of career transition program can be an excellent gesture if you are looking to support your employees through a tough time in their lives and allow them to transition into new roles outside the company without having to worry about what comes next.
Let’s be clear, the benefit is not only to those who are leaving the organization. Career transition service providers also support HR and the leadership team with internal communication. Whether it’s email, newsletters or townhall meetings. A strong communication plan needs to be in place when releasing team members. There should also be a client communication plan in place. A reduction in staffing doesn’t always mean business is on a downturn, but clear communication with clients is key to ensure that they don’t take their business elsewhere.
How does career transition and outplacement drive business growth?
When you are terminating an employee, it is crucial to empathize with the fact that they will be facing a new world without the security they have come to depend on. Many have not been in job search mode for years and perhaps decades and will need your help to navigate it. Career transition and outplacement services aren’t just beneficial for them. Here are some of the ways in which outplacement services can be beneficial for your organization:
It demonstrates to your employees that even though their peer is no longer on the team, you care enough to provide career transition and outplacement services to help them regain employment
Employees are more likely to stay with an organization who provides outplacement services as if something went sideways for them, they would know support would be provided
It reduces the risk of legal action stemming from the termination. When terminations arise, there is generally a separation agreement signed by both the employee and employer that includes pay in lieu of notice, continuation of employee and family assistance plans and career transition and outplacement services to name a few.
In short, it enhances your brand image by showing that you care about the well-being of your workers and want them to succeed in their next role. Your clients will also see that you are committed to helping employees find new positions once they leave your company—and this can actually increase loyalty among those clients.
Don’t be fooled. Career transition and outplacement is not the same as talent management.
Career transition and outplacement is often confused with talent management or leadership development, but they are distinctly different. Career transition and outplacement is specifically for cases when you want to help your employees transition out of your organization when, for a variety of reasons, the relationship is no longer working well.
Career transition and outplacement is almost always offered externally to the company. This helps the leadership team to focus on rebuilding and ensuring client deliverables are met while an external provider supports the employee in transition.
Career development, sometimes called talent management is more focused on developing the skills and abilities of your current employees, while leadership development is aimed at helping them grow as leaders. Career development often is offered by the in-house human resources department but sometimes a third-party consultant is used.
Let’s expand a bit further on in-house career development.
What do you mean by in-house career development?
What is in-house career development?
Career development is the process of planning and executing a strategy to help employees progress professionally.
An in-house career development system, more specifically, aims to integrate an employee into your organization or company's culture and business. It can help you put in place the necessary strategies, skills, and knowledge to aid both new and seasoned employees’ career progression.
Employees who have been with their companies for some time but no longer see themselves rising through the ranks or growing in their current role can benefit from in-house career development. Such employees may feel they are stuck in one place, and career development can help them get back on track by identifying new opportunities within their organizations.
Additionally, employees who have recently changed jobs, either voluntarily or involuntarily (i.e., laid off) may also need support as they search for new employment opportunities that best fit their skill sets, interests, and needs. An in-house program can provide this guidance by helping new recruits find their place in your organization, especially if you really want to hire them despite the challenges.
How does in-house career development drive business growth?
There is a plethora of business benefits to offering career development services that not only supports the development of your talent, but that talent then draws on their new-found knowledge and that energy and interest, drives business growth. Below we highlight four key benefits. In-house career development drives business growth through:
Improved employee retention
Enhanced downsizing and succession planning
Prepares executives in-house
Upskills the workforce to adapt to the changing landscape
If you are curious to dive deeper into how in-house career development drive business growth, continue reading this article.
Summary
Let’s summarize both career transition and outplacement services and in-house career development programs.
Career transition and outplacement programs not only benefit those who have been involuntarily and unexpectedly released from their role due to downsizing/restructuring, etc. but it considers the employees who have to take on additional workload due to this loss through a robust communication strategy. It also provides an opportunity from a branding and outward facing perspective that you want best for your team regardless of their employment status. For these reasons, and many others highlighted in this article, career transition and outplacement programs are good for business.
On the other-hand, in-house career development programs will help your employees understand who they are as professionals and choose the best career direction at any given stage. These programs also highlight strengths and support succession planning ensuring the right people, are in the right place, at the right time. Leaders who know the skills, qualifications, and unique ways their staff can contribute to client deliverables are those who are set up for long-term success. This awareness builds client trust, boosts long-standing relationships and drives business growth.
If you have never solicited the support of a career transition and outplacement service in your organization before, or are curious to learn more about building an in-house career development program, book a complimentary call with us. We are here to help you leverage your talent and drive the growth of your business.