Are career transition programs worthwhile?

Separation is one of the most challenging moments in a career. For HR and line managers, it's a difficult time that demands empathy, preparation and effective communication.

Professional outplacement, or ‘career transition’ coaching supports impacted employees with their next career move; advises the organisation on effective separation process, and supports remaining staff in managing change. 

While we often hear that it's about 'doing the right thing' for employees, there's more to it than a moral argument.

When most businesses assess the cost of making roles redundant, they calculate the direct cost of the redundancy payout and legal fees.

Few consider the indirect cost (productivity, absenteeism, turnover) and opportunity cost (HR and manager time spent on the separation process, at the expense of other projects).*

So, what makes career transition programs worthwhile? How can you evaluate the ROI of effective separation, and the risks of not getting it right?

In this case study, we calculated the real cost of redundancy and the cost savings achieved by effective separation.

The key findings were:

• The overall cost of redundancy is over 6 times the direct cost

• Cost of career transition programs is 3% of the overall cost of redundancy

• The cost savings of effective separation are $54K per impacted employee

• ROI of outplacement is 12 times the investment

As organisations continually transform, adapt and right-size, there's a clear impetus to effectively manage the people side for change.

For effective separation and career transition, this means delivering on key outcomes. Use this checklist to measure the effectiveness of your separation programs:

1. People are treated with dignity, respect and professionalism;

2. Leaders have the resources they need to manage the change process;

3. Impacted staff are supported effectively;

4. Remaining staff have the tools and resources they need to adapt;

5. Change disruption is minimised;

6. Litigation risk is reduced to zero;

7. Your company brand is protected.

Guide to Effective Separation

By following the right steps before, during and after separation events, you can mitigate the risks and ensure your employees are treated with dignity and respect, and supported for the future. See all steps in this Guide to Effective Separation.