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September 2016

Workers Now Punishing Companies That Don't Offer Outplacement Service

There's a strong ethical case to be made for working with the best outplacement consulting firms. An outplacement service can help employees land on their feet during a difficult transition, but there's another important reason so many firms are paying outplacement companies.

In the information age, many laid off and spurned employees are leaving highly damaging reviews that can make it near impossible to attract top talent moving forward.

The Business Case For Contracting Outplacement Service

For moving companies, florists, restaurants, and countless small businesses around the country, Yelp is like an evil cartoon villain, twirling his moustache and doling out one-star reviews.

But for companies of all sizes, there's a new review website that's becoming too influential to ignore. Glassdoor is a job search and employer review service that allows current and former employees to share reviews and salary information (check your company's reviews here). In the information age, companies can live or die by their digital reputation.

In a new article just published in the Sydney Morning Herald, writer Greg Weiss describes how a company that chose not to invest in outplacement consulting firms paid a major price, and ended up in a talent acquisition death spiral:
A professional services firm I know had previously enjoyed the reputation of being a great first employer for top-flight graduates. But with the loss of a major client, many of the bright graduates were [laid off] without thanks or outplacement support. Enough of the internet-savvy former employees publicly vented their anger and disappointment stating what it was really like to work for the company. The next graduate intake saw the firm failing to hire good graduates (who had apparently read the harsh criticisms online). Within a short while, the firm also lost out on projects it would normally have expected to win.

What Is Glassdoor? What Do Employers Need To Know...

Glassdoor's company review service is becoming more popular as competition for workers here in the U.S. keeps rising. The company just rolled out new features and is hiring dozens of workers for its new San Francisco office (with another Chicago office set to open soon).

So while many human resources consultants will make an ethical and moral case for hiring an outplacement company, there's an equally strong business case to be made, too.

Today, young workers are more likely than ever before to engage in job hopping. In June 2015, 2.7 million workers voluntarily left their jobs, a huge 25% increase over the same period two years prior. And in a new survey from Jobvite, up to 53% of workers said they were open to a new position even when they weren't actively job hunting.

Thanks to the information age, it's never been easier for potential hires to research a company's reputation before accepting a position.

If workers look up your company's reputation, what do you want them to see?

More than ever, the top outplacement consulting firms are helping companies protect their reputation.