Gilpin ESD

Executive Recruitment | Belfast | Northern Ireland

Outplacement in Northern Ireland

Thursday, December 17th, 2009

In Northern Ireland a number of businesses baulk at the idea of paying for Outplacement.  “Why pay for a service when we are already paying them to leave?”  However, this is short sighted. Industry studies suggest that, on average, outplacement costs less than 5% of the total costs of separating employees, but that it can produce substantial returns. DBM research conducted with the help of 1,200 senior HR people found that companies who used outplacement were three times more likely to maintain or increase share price than those who did not. They were also one and a half times more likely to increase profitability and twice as likely to increase productivity.

So what’s the business case? How do businesses know what the ROI might be?

In the past we have worked with clients to calculate the ROI. The investment side of the equation is straight forward and the return side is dependent on a number of factors. This has typically meant that Outplacment has

Saved on costs:

  • Cost and time savings from avoidance of legal challenges to

    redundancy: research suggests that legal challenges are cut by almost 30% when outplacement is offered.

  • Savings on PR, because outplacement reduces unfavourable press coverage and the need to counter it
  • Potential savings on redundancy payments, because employees offered outplacement frequently start new jobs before their notice period is up

Enhanced Revenue:

  • Increased revenue from more effective business performance as a result of employees who remain focusing on their work, secure in the knowledge that their former colleagues are being helped towards a good future
  • Ease of future recruitment, because candidates know they are entering a firm which will return their commitment
  • New business opportunities, as departing employees frequently go to work for potential customers for your services, and outplacement maintains their positive view of you as a business partner.

These are just some of the factors we consider when calculating ROI. Each needs to be costed and monitored at project milestones to track ROI in a way that is achievable, relevant and detailed. One thing for certain is that time and time again Outplacement has been a smart investment for clients and a responsible way to look after staff as business needs change.

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