With the new Work and Security Act, the Government wants to encourage outplacement and work-to-work counseling. Outplacement is seen by many as a neat way to say goodbye to the employee and guide him to a new job. 5 reasons why an employer uses outplacement for the employee(s) leaving the organization.
1. Outplacement offset against gross severance pay Upon termination, the employer must pay severance or transition compensation. Costs incurred during employment to support the employee in finding a new job may be offset against the transition allowance.
2. Outplacement is good employment practice An employer who organizes outplacement for its laid-off employees shows concern for its employees. This creates a positive image and also affects other stakeholders, such as customers. A positive image also helps attract new staff. Outplacement has a calming effect on the personnel left behind, which improves the atmosphere in the organization.
3. Optimal personnel capacity through outplacement The rapidly changing economy has forced companies to adapt quickly. An employee is out of the right place faster than before. Outplacement ensures that this employee is guided to another job, which is a good solution for both parties.
4. Saving on severance costs through outplacement An outplacement process creates a clear end of employment. Outplacement is part of the severance package. This avoids costly dismissal procedures or severance payments. Outplacement often results in less absenteeism and a positive work ethic. Outplacement always pays for itself!
5. Outplacement makes sense! Approximately 80% of employees who have completed an outplacement program with Panthion find a new job within six months.