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Outplacement improves bottom line, finds global study

These findings are part of a global survey of more than 1,700 business leaders and human resources professionals, conducted by Right Management, the talent and career management experts within ManpowerGroup.

Leading companies assist exiting employees with outplacement to find new jobs and career opportunities. Of the organizations surveyed across 10 countries by Right Management, 85% that offered outplacement indicated it was very/extremely important to maintain positive relations between current and departing employees. Further, 83% provided outplacement as part of their business strategy to restructure and be more competitive.

"Our research shows that when companies offer outplacement during a restructure or merger, they gain positive returns on that investment," said Bram Lowsky, Group Executive Vice President Americas for Right Management. "How you right-size your organization and prepare it for growth is directly impacted by how you treat departing employees. Providing outplacement help directly increases their speed and success in landing their next great job. It also demonstrates fairness and support, which in turn helps to maintain positive relations and build engagement with employees who remain with the company."

According to the global survey findings: 

In the 12 months following a downsizing, 34% of companies that bought outplacement reported           productivity increases versus 28% of non-buyers.

Profitability increased for 46% of buyers versus 44% of non-buyers. The Americas region showed       the greatest difference of 47% and 41% respectively.

Company stock price (where applicable) increased for 31% of buyers versus 10% of non-buyers. In     fact, 17% of non-buyers experienced a drop in stock price.

Unwanted turnover decreased for 17% of buyers versus 14% of non-buyers with the biggest gap in     Asia Pacific, where 27% of buyers reported a decrease in unwanted turnover versus 16% of non-         buyers.

Sick days decreased for 28% of buyers, compared with 18% of non-buyers.

Employee morale increased for 28% of buyers versus 20% of non-buyers.

Among outplacement buyers, 38% reported an increase in employee satisfaction versus 14% of non-buyers.

"In a highly competitive global marketplace, organizations restructure to align their talent with their business objectives," said Lowsky. "While there are many variables that might influence a company's stock price or profitability, if the restructuring process isn't handled in the right way, including providing outplacement, the very goals that were the catalyst for the changes are put at risk. What's more, when employers offer outplacement services, they are investing in their own brands as their efforts will positively impact their remaining employees along with their ability to attract and retain future talent."

The study identified that outplacement is most frequently offered during a restructuring (68%), merger or acquisition (53%) or leadership change (43%).

The outplacement survey was commissioned by Right Management and conducted between January 4 and May 14, 2013 by independent research firm LHK Partners of Newtown Square, Pa. A total of 1,721 organizations participated and were not selected by Right Management.

As the world's leading outplacement provider, Right Management's success is built on 30 years of unequaled global and local experience, our ability to tap into ManpowerGroup's unparalleled knowledge of workforces, and our $2 million annual investment in proprietary research. This drives our ongoing innovation and helps us anticipate trends, assess market shifts and fuel our leading edge solutions through continuous improvement as we help our clients and their transitioning employees succeed in today's competitive environment. As the global market leader who sets the benchmark for the industry, we ensure we meet the needs of both traditional and technologically-based buyers of outplacement.

The results of the outplacement survey are summarized in an infographic that is available for download at this link.  In addition, the white paper, "Why Organizations Rely on Outplacement: A Global Perspective," can be obtained by emailing Shari Fryer at


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