Does Your 2024 Budget Include Outplacement or Career Transition Dollars?

As organizations go through peaks and valleys, and as the economy ebbs and flows, companies may face the possibility of layoffs or the need to downsize.   

This can be a very difficult decision. In these instances, companies often prepare severance packages which may include a lump sum of compensation, a continuation of health benefits for a period of time or retirement plan extensions. Additionally, many also provide outplacement or career transition services for their exiting employees. These services are utilized during layoffs when budgets are already tight. 

When engaged in conversation with clients about our outplacement services, one objection we hear is that the dollars for outplacement services just aren’t in their budget. 

It may not have been a “planned” event that prompted the need to downsize, or it might be a situation where employees are no longer in the “right seat”. Regardless of the situation, these employees don’t have a career path any longer and are released from the company.

Companies who include outplacement assistance in their severance packages provide their exiting employees with an empathetic safety net. Losing a job is one of the most stressful challenges a person can encounter. Outplacement provides care, comfort, and support during difficult and stressful times, helps build resiliency and confidence which sets up your transitioning employees for future success.

What’s in it for you, the employer? One of the key reasons to provide outplacement assistance is to protect your company’s brand and the remaining employees’ confidence, while also providing comfort and help to your transitioning employees.

As part of your annual budgeting process, do you allocate dollars for outplacement services? This is an investment to consider as you engage in your 2024 budgeting process.

If you would like to learn more about our Outplacement/Career Transition programs and pricing as you look forward to the new year, please contact Lee Johnson. Lee can share more information with you about our services. While you may never need to tap into this budget, it will create great comfort for you and other leaders in knowing it is there in case it is needed.