Outplacement improves retention rates, according to HR director survey

Two-thirds of HR directors believe providing support for staff who are made redundant improves retention rates, according to research.

The Value of Outplacement study by Reed Consulting found 65% of HR directors felt aiding redundant staff helped to retain those who remained, while 78% said it improved the employer's reputation.

Outplacement - providing assistance and training to help staff who are laid off find work - has been growing steadily in recent years, with the number of individuals receiving such support increasing by 50% in the past two years.

Nearly three-quarters of the 100 HR directors polled said providing outplacement eased the pressure on line managers, allowing them to shed jobs with a clearer conscience.

Bob Stewart, managing director of recruitment specialist RMS-International, said the support service was important for the employees staying, as well as for those leaving.

"Companies need to communicate why they're making cuts with all employees, especially those remaining, and outplacement helps instil confidence in the future in both sides," he said.

Rob Don, policy adviser at the CBI, added: "Helping those affected in their transition to a new job can ease the difficult process for management, as well as reassuring remaining employees of the business's genuine concern for their careers."