When you lose your job, cash becomes a priority for a lot of people. And understandably so. A pivot in your career is often an uncertain, daunting time in someone’s life. Clients sometimes ask what the best practices are for offering the cash equivalent to career transition services rather than providing access to the programs themselves, and whether these recommendations vary depending on the profile of the employee eligibility.
Career transition in the Middle East
Regardless of someone’s level of seniority or job function, the value of a bespoke outplacement program is always higher than the cash equivalent. Shocking, right? A company that sells career transition programs advocates for them over cash. But hear us out. Here’s three quick reasons why we think so:
- Ask yourself the motive behind offering the cash equivalent. Whether it’s because you feel it’s the right thing to do; to protect the brand and company’s reputation; reduce the legal risk; or to maintain employee engagement and manage stress for those staying with the company. These reasons are only justified if the impacted employee is in a stronger position to secure the future that they want for themselves. At the end of the day, an employee that takes the short-term appeal of cash is still unemployed and with less tools at their disposal to build the future they want.
- Participants of our career transition programs find new jobs on average 65% faster than if they searched on their own. Without this focused support, your employees are likely to be in limbo for longer, increasing the chance of them developing and expressing negative feelings about your organisation.
- Memory of cash fades as quickly as it is spent. Eventually, the employee who has lost their job will need to look for a new role or start their new business. In a job market that is rapidly evolving and becoming more reactive to algorithm-based job boards, applicant tracking systems and immersive assessments, many jobseekers experience what seems like an endless, frustrating and demotivating cycle. They struggle to navigate this maze and are forced to remain unemployed. At this point, many forget it was their choice not to take up the offer of outplacement support and their anger, blame and frustration towards your company grows.
But it’s not all about risk management. There are many positive benefits that organisations gain from offering outplacement support to their employees that the cash equivalent simply does not deliver. We’ll explore the benefits in our next blog but until then, we’ll leave you with some food for thought; best-in-class companies are 2.5x more likely to use outplacement services and 71% of UK employers report that they do not offer cash in lieu of outplacement.