Is Your Company Meeting Its Outplacement ROI Target?
Outplacement is one of the most valuable benefits an organization can provide for its employees – and potentially, one of its most cost-effective investments. Unfortunately, many companies fail to rigorously assess the ROI of their various outplacement alternatives. As a result, human resources departments often choose a solution that leaves “money on the table” at a time when few companies can afford to do so.
To help organizations that wish to set and meet optimal targets for outplacement ROI, RiseSmart, a leader in next-generation outplacement and RPO solutions, today released two free tools: an online Outplacement ROI Calculator and a customized Outplacement ROI Analysis & Report for interested companies.
“The online ROI calculator offers a snapshot of the kind of return an effective outplacement program should be able to deliver,” said Sanjay Sathe, founder and CEO of RiseSmart, whose Transition Concierge™ outplacement solution has quickly earned the business of more than a dozen Fortune 500 companies.
Unemployment Taxes. The longer a company’s laid-off employees are on unemployment, the higher its annual state unemployment tax rate. In every state, employers pay SUTA or State Unemployment Tax Authority taxes that vary year to year based on unemployment utilization. This creates an incentive to get employees off unemployment benefits and back to work quickly, and to choose an outplacement solution that is effective at this task.
Severance Payments. Cost-conscious employers are increasingly dispensing with lump-sum severance payments in favor of supplemental unemployment benefit plans that pay employees only until they find a new job. These costs can be directly reduced by results-oriented outplacement support.
Legal Costs. The average wrongful termination suit costs the employer $50,000 in fees and settlement payments, according to estimates. Companies should carefully monitor the percentage of exiting employees filing suits; an effective outplacement program can hold this rate to a half of one percent or less.
Redeployment Savings. When an organization has open positions, filling those slots with qualified employees affected by layoffs elsewhere in the company can be highly cost-efficient. The key is choosing an outplacement provider that is able to quickly and effectively match talent with available opportunities.
Outplacement Costs. Finally, it is critical to carefully assess your costs in providing outplacement to your employees. These costs vary widely depending on the firm and/or solution you select. If a firm is offering expensive services that don’t translate into bottom-line savings, you should consider a more cost-efficient option.
For corporations experiencing job reductions, Transition Concierge offers a dynamic new model for transition services. Transition Concierge dispenses with traditional "soft" services – costly to employers, but of relatively low value to employees – in favor of aggressively helping workers find a new job.
Transition Concierge grew from specific observations about the limitations of existing outplacement services. For example, most laid-off workers today don’t value an invitation to use expensive office space or to attend psychology-based group counseling sessions; they simply want to find a new job as quickly as possible.
Transition Concierge creatively leverages technology to optimize time-to-placement for laid-off workers. Powered by proprietary aggregation and semantic search tools, the virtual solution delivers highly personalized job leads as well as other job search tools to eligible employees on a weekly basis. Laid-off workers also have access to one-on-one assistance during every step of the job-finding process.
Interested companies are invited to use the Outplacement ROI Calculator on RiseSmart.com or contact us to receive a customized Outplacement ROI Analysis & Report. You may also call (408) 886-3413 for more information.