Perhaps this is an odd question to come from people who provide outplacement, but it is a good question to ask. After all, most organisations that make redundancies do it because they look to cut costs – so why invest in a service that you will see very little ROI on?
It’s a very valid question. There are many arguments for outplacement, most of them offer long term ROI, what I call ROI by Proxy. If you give people good career transition at the point of redundancy, they leave the company far less disgruntled. It may even change their view of a company that “kicked them to the kerb”, so to speak. With good career transition you may change a few lives. You may even save a few lives. Outplacement done right engages local businesses and local communities to make sure the redundancy will not have a devastating effect on the locality.
Outplacement, or rather – Career Transition, done right is actually a responsible way to manage redundancies.
This is where I would have wanted to quote research about the good Career Transition and Outplacement do to the organisations who provide them and their communities. Unfortunately, I found very little current research (from the past 5 years) geared around understanding and/or measuring the socio-economical effects of well-supported redundancies.
Instead, I found some interesting research about the individual effect career transition/outplacement might have in a research done in Italy. I’ve also found some disgruntlement rising from the ranks that the 70’s concept of outplacement services needs to be re-thought (particularly the one-size-fits-all approach, as well as the approach according to which one must have another job when they leave and that which does not offer group sessions) in two separate academic papers , one from Australia and the other in the US.
I was hoping that Douglas C. Maynard & Daniel C. Feldman book, titled “Underemployment: Psychological, Economic, and Social Challenges” would have something there, but it – too – accounts for the only personal impact of outplacement.
If there are academics out there, probably in the fields of economics, sociology and maybe even human resource or management studies – will you help us find out how Career Transition, the Non-70’s Outplacement, affects communities and localities as a whole? It would be great to have some empirical and quantative research about this.