Most layoffs don’t end amicably, but helping former employees find their next opportunity could be the next must-have benefit for companies that want to preserve their online reputation.
Around 38% of laid-off and terminated employees gave their former employers negative reviews on company rating sites like Glassdoor, according to a survey of 218 HR professionals and 1,369 workers by CareerArc — a California-based outplacement company. A second study by the company says employees appreciate companies who go out of their way to lessen the blow of layoffs; 70% of job seekers said receiving outplacement services improved their opinion of former employers.
“In the modern world of Glassdoor reviews, company culture is one of the most important parts of an employer’s brand,” says Yair Riemer, president of career transition services at CareerArc. “A company who lays off with empathy and helps people get back on their feet is going to be remembered for it.”
Riemer spoke with Employee Benefit News about the merits of adding outplacement to benefits packages.
EBN: Why should employers consider offering outplacement services in their benefits package?
Riemer: The faster someone lands a job, the better it is for everybody. It’s great for employees because they have someone helping them find a new job after being laid off — a very stressful, anxious time. But it’s also great for employers as well because you’ll pay less in unemployment, lawsuits and severance packages after conducting layoffs.
Overall, it just makes companies look better. And in the age of Glassdoor reviews, companies that want to hire the best talent can’t afford terrible ratings. People rely on these sites to give them a clearer picture of a company’s culture, which is one of the most important deciding factors for accepting or declining a job today. Laid-off employees are more likely to leave negative reviews, but if your company helps them find new opportunities, they’re more apt to leave on a positive note.