No business owner likes to have to lay workers off. In the first place, it usually means the business is not doing as well as it was expected to do. Usually, when businesses are doing well they grow and hire people, they do not have to downsize. In the second place, telling people you can no longer keep them on staff is not a fun thing to do. More and more companies are looking to outplacement service companies to help with the process. While it may be clear as to how these outplacement consulting firms can help the staffs, sometimes business owners do not see the benefits they will see to them. Here are some of the reasons to hire an outplacement service company.

1. Having outplacement consulting firms come in will make it less painful for everyone involved. When you have someone onsite, you can show the employee that you are not just paying them lip service when you say, “we will do anything we can to help you with your job search,” because it is clear that you are. Outplacement services can start working with your employees right away. This will make the experience of telling the people who work for you that you have to downsize less painful for you. You will sleep better at night knowing you are doing what is best for your people.
2. Your business reputation can suffer when you have to lay people off. First of all, whenever a company starts the process of laying off workers, it signals to the outside world that not everything is going well internally at that company. It also makes it harder when you do recover and need to hire more people. Job seekers may be wary of going to work for a company that had laid a large percentage of its workforce off. When you bring in an outplacement services company, you show the world that you care about your workers and that their needs will be taken seriously if something happens. Far too many companies treat their workers like they are disposable. By working with outplacement services companies, you show the world that this is not how you see your workforce. That is a good thing for your reputation.
3. You keep your other workers happy. When a part of your workforce needs to be laid off, the people who you keep may be left feeling very uncomfortable and anxious. It is only natural that when some employees are let go, the rest may worry that they are next. What do they then do? They start looking for work elsewhere. You may have laid off some workers so that you could save your business and save the other jobs but it will be hard to convince the workers you keep of that. Moreover, the workers who stay may not perform as well after a series of layoffs. What working with an outsource service company will do, is give these workers a better sense of security. They will see that their needs are also being considered, which will help them focus on their jobs and not looking for new work.
4. Your laid off workers will find new jobs sooner. There are a number of reasons you want your laid off workers to get new jobs as quickly as possible. There are some costs, such as unemployment compensation, that you have to pay. When the workers get jobs, you no longer are responsible for those payments. Another consideration is that when they get new jobs, word will make it back to the workers you still have and will make them less worried about their future. This is good for everyone’s morale.
5. You can be protected from legal liability. You may have done everything by the book but we live in a litigious society. When you work with an outsource service company, you can insulate yourself against any lawsuits brought by the laid off workers. Employees who work with your outplacement services company will most likely get a new job and have no reason to sue. Those who do not will have no basis because those services were offered.

Hiring an outsource services company is a great thing you can do to help your employees.