Outplacing staff 'improves retention rates'

19 August 2008

Firms that are forced to lay off workers can improve their corporate image by helping them find new work, according to a new study.

Categories: People management  |  CSR

Outplacing staff who are made redundant improves retention rates, it has been claimed.

Research conducted by Reed Consulting highlighted that 65 per cent of Human Resources (HR) directors feel helping redundant staff find work will encourage other workers to stay on with the company.

Some 78 per cent added that such action will help improve an employee's reputation.

Three-quarters of respondents said outplacing can reduce the pressure on line managers as they feel they can make staffing decisions more easily.

The study also showed that outplacing is becoming increasingly more popular, with the number of individuals being supported in this way increasing by half since 2006.

Meanwhile, a study by fish4jobs recently revealed that 64 per cent of companies are finding it harder to recruit employees due to monetary constraints.

The research showed there are still vacancies being advertised but firms could be missing out on top talent.ADNFCR-1459-ID-18739310-ADNFCR

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