The Role of Outplacement in Building Organisational Trust and Maintaining a Social Licence to Operate

A report by the Australian Institute of Company Directors (AICD)…
June 3, 2020/by Sara-May Monaghan

How Outplacement Can Minimise the Risk of Reputational Damage

With the inevitable cut-backs arising from the impact of COVID-19…
May 27, 2020/by Greg Weiss

How Outplacement Can Minimise the Impact of “Survivor’s Guilt” in Remaining Employees

When we consider the impact of job losses - such as recent redundancies…
May 20, 2020/by Greg Weiss

How to Prepare Stood-Down Employees To Return To Work

With the COVID-19 pandemic wreaking havoc across the workforce,…
May 13, 2020/by Greg Weiss

The Benefits of Teaching Stood-Down Employees to ‘Think Like an Entrepreneur’

With the COVID-19 pandemic wreaking havoc across the workforce,…
May 6, 2020/by Greg Weiss

How to Keep Your Employees Productive and Active During Stand-Down

With the COVID-19 pandemic wreaking havoc across the workforce,…
April 29, 2020/by Greg Weiss

As an Outplacement Provider, Do You Have an Online Outplacement Program Ready to Deliver? Here’s Why You Need One Now…

As the COVID-19 pandemic continues to impact businesses across…
April 22, 2020/by Greg Weiss

Retrenching Staff Due to COVID-19: How to Do It Remotely With Sensitivity, Empathy, and Respect

Letting go of staff members is never an easy or pleasant task.…
April 15, 2020/by Greg Weiss

Why You Need an Outplacement Strategy: Preparing For Staff Lay-Offs in the Wake of Coronavirus

With novel coronavirus (COVID-19) now at the pandemic stage,…
March 25, 2020/by Greg Weiss

How to Prioritise the Mental Health of Departing Employees: Offer Career Coaching

There’s been a push for employers to ensure workplaces…
March 24, 2020/by Greg Weiss

Why You Need an Outplacement Strategy: Preparing For Staff Lay-Offs in the Wake of Coronavirus

With novel coronavirus (COVID-19) now at the pandemic…
March 13, 2020/by Greg Weiss

Solving Career Confusion 2RRR radio interview

I was delighted to recently feature as the guest on…
March 11, 2020/by Greg Weiss
Load more

The Role of Outplacement in Building Organisational Trust and Maintaining a Social Licence to Operate

A report by the Australian Institute of Company Directors (AICD) highlighted a concerning trend – organisations across Australia (in line with their global counterparts) are facing a serious and undeniable “crisis of trust”.

The 2018 Edelman Trust Barometer (a global survey on institutional trust conducted by public relations firm Edelman) found that trust had fallen across all four of the groups it covers – government, media, business, and non-government organisations (NGOs) – with trust levels at five-year lows and below the 50% threshold denoting the point they are classed as ‘distrusted’.

While ‘trust’ is a wide-ranging concept that can apply to the way an organisation is viewed both outside and within the business, one thing that’s clear is that building and maintaining trust is crucial to the way in which businesses operate. In fact, the AICD survey completed by almost 600 directors found that over 95% agreed or strongly agreed that trust was important to their organisations’ sustainability.

What’s more, trust is one of the key components of maintaining a ‘social licence to operate’ – a core consideration for any business wanting to remain sustainable and trusted by the community in which it operates.

In this article, I’ll be looking at why organisational trust is important, what it means in the context of a social licence to operate, and how outplacement can play a key role in building and maintaining trust within your company.

Institutional Trust and Social Licence to Operate

Firstly, it’s interesting to examine the concept of a social licence to operate (SLTO) – a term that’s been in use for around twenty years and used to describe the ‘non-formal responsibilities’ of an organisation.

According to The Ethics Centre, the social licence to operate refers to “the acceptance granted to a company or organisation by the community”. While we’re all aware of the many formal legal and regulatory license requirements that need to be met for businesses to operate legitimately, SLTO could be described as an informal license given to an organisation by the stakeholders on whom their activities have an impact.

The Ethics Centre identifies three key components of SLTO:

  • Legitimacy: Adherence to the accepted standards or ‘rules’ of the community – whether these are legal, social, cultural, formal or informal.
  • Credibility: The provision of true and clear information to the community and the capacity to fulfil any commitments made.
  • Trust: “The willingness to be vulnerable to the actions of another”. Trust and confidence are key pillars of SLTO; they are hard to obtain and all-too-easy to lose.

With growing public expectation for businesses to demonstrate a commitment to corporate social responsibility, maintaining a social licence to operate should be a key focus for any company. And that means taking a proactive approach to ensuring high levels of institutional trust.

The Importance of Internal Practices in Organisational Trust

Two key findings of the AICD report showed the importance placed on maintaining trust at an internal level:

  • 81.6% of surveyed directors see “employees” as one of the two most critical stakeholders to maintain trust in an organisation (a close second to “clients or customers” at 82.3%).
  • “Internal culture and practices” was seen as the most critical issue relating to trust, with 74.1% of respondents selecting this issue as part of their top three.

Taking a bigger picture approach, prioritising trust at an internal level is logical given that individuals within an organisation will inevitably interact with external stakeholders and make decisions that reflect the credibility of the organisation as a whole.

The Role of Outplacement in Building Organisational Trust

With ‘internal culture and practices’ seen as a critical issue relating to trust and more than 90% of directors surveyed by the AICD stating they were making efforts to improve the corporate culture of their organisation, a practice such as outplacement can play a critical role in building organisational trust ‘from the inside out’.

In fact, making outplacement an internal practice that forms part of your organisational culture can go a long way in building trust at both an internal and external level. Here’s how offering outplacement services can positively impact trust on various stakeholders:

1. Outgoing Employees: Outplacement can increase trust and reduce negative feedback

By showing your willingness to act with fairness and respect, providing outplacement support to departing employees following redundancy or retrenchment helps to protect the relationship between an outgoing staff member and your organisation.

This will help to maintain their trust and confidence in your brand even under difficult circumstances. Aside from minimising any resentment on the employee’s part, this is also beneficial should you wish to recall them in the future as a ‘boomerang’ employee (which is particularly relevant in our COVID-19 era when current cut-backs may be reversed as the economic landscape changes).

2. Existing Employees: Outplacement maintains trust and engagement

For your surviving employees, providing outplacement to departing staff members demonstrates your company’s commitment to upholding its brand values at every stage of the employee lifecycle.

This will help to ensure a positive perception of you as an employer, which will have a knock-on effect on internal trust levels, as well as ensuring surviving employees remain motivated and connected with your brand.

3. External Stakeholders and the General Public: Outplacement protects brand reputation

A study by Career365 found that 95% of people would be “far less inclined” to post adverse comments about their former employer had they been offered an outplacement program.

By providing outplacement support to departing employees, you can help safeguard organisational trust in the wider community by reducing the chance of negative feedback being shared online or via word of mouth from unhappy former employees.

Career365’s affordable online outplacement programs – delivered via online training modules and video-based coaching – coupled with video conferencing via Zoom, Teams or Skype can be accessed from any location, at any time, on any device, making them ideal for a COVID-19 environment.

If you need support or advice on outplacement services for retrenched employees in the wake of the COVID-19 pandemic, visit www.career365.com.au to find out more about our fully online outplacement programs.

Greg Weiss has authored two books about career transitioning and is soon to release a third. He has deep expertise in outplacement and employee onboarding, and is the Founder of Career365 (formerly CareerSupport365) – a leading Australian employee transitioning firm, specialising in outplacement and employee onboarding.

How Outplacement Can Minimise the Risk of Reputational Damage

With the inevitable cut-backs arising from the impact of COVID-19 on the global economy, many organisations have no choice but to reduce their staff numbers. Whether it’s a case of retrenchment or redundancy, providing outplacement services to outgoing employees helps to ensure they receive the support they need in these challenging times.

However, outplacement programs can also offer significant benefits to employers – one of which is the reduced risk of reputational damage to their employer brand. Maintaining a positive brand reputation should be an important consideration for any company – according to research conducted by LinkedIn, 60% of professionals aged 40 and under associate employer branding with job consideration.

If you’re having to let go of employees due to COVID-19, here are some of the reasons that offering outplacement support will help minimise the chances of your organisation facing a ‘branding backlash’.

Employees offered outplacement are less likely to spread negative feedback.

Ever noticed that online reviews are more likely to be shared when the person’s suffered a bad experience? Well, a study undertaken by ZenDesk revealed that respondents who experienced a bad service interaction were 50% more likely to share it on social media than those who had a good experience. If we put this into an employment context, this would suggest that disgruntled employees will be far more likely to share negative feedback about their employer.

Providing outplacement can help to leave outgoing employees with a positive impression of their former employee, by demonstrating they are still cared about and will be treated with dignity even on their departure. In fact, research conducted by Career365 showed that 95% of people would be “far less inclined” to post adverse comments about their former employer had they been offered an outplacement program.

Outplacement helps to maintain a healthy relationship between employer and employee.

Providing Outplacement is not a legal requirement. It is a service that is offered by employers who truly care about their employees, even as they depart the company. By this one tangible act of support, the employer’s reputation is reinforced in the eyes of the participant.

So, why is this important? Aside from making it less likely that the outgoing employee will share negative feedback about their employer in the short-term (as outlined above), it also helps to maintain a positive relationship going forward. As well as minimising the chance of employers talking badly of their former employer in the future, this can also be very helpful if circumstances change and the employer wishes to re-engage the person as a boomerang employee.

Worth noting: At the first meeting with a new participant in one of our outplacement programs, I make a point of giving kudos to the employer. By explaining that the former employer is being immensely helpful in providing the support they aren’t legally required to, the participant is consciously made aware of what it means to be offered Outplacement.

Offering outplacement can help you be recognised as an Employer of Choice.

Employer brand reputation is particularly important when it comes to attracting new talent. And with employer review websites such as Glassdoor and Seek being used extensively by job seekers to gauge the suitability of potential employers, ensuring your brand is seen as an Employer of Choice can go a long way in securing top talent.

Supporting outgoing employees via an effective outplacement program demonstrates your brand’s commitment to upholding its values and treating staff members fairly at every stage of the employee lifecycle. This will be viewed favourably by future employees and helps your organisation to stand out as an attractive place to work.

Providing outplacement support presents a positive brand image for surviving employees.

Your brand reputation isn’t just based on the way people outside your organisation view your company. The way you’re perceived by current employees – particularly during a period of higher than average job losses such as the COVID-19 era – is equally important. As well as reducing the chances of your own employees spreading negative word of mouth about you, providing outplacement can be highly beneficial in terms of keeping existing employees engaged and productive.

When remaining staff members can see their former colleagues being treated with dignity and respect through the provision of outplacement support, they will feel reassured and have greater confidence in their employer. This will help ensure surviving employees view their employer in a positive light, remain connected and motivated in the workplace, and be less likely to suffer the impact of survivor’s guilt.

Career365’s affordable online outplacement programs – delivered via online training modules and video-based coaching – coupled with video conferencing via Zoom, Teams or Skype can be accessed from any location, at any time, on any device, making them ideal for a COVID-19 environment.

If you need support or advice on outplacement services for retrenched employees in the wake of the COVID-19 pandemic, visit our outplacement page to find out more about our fully online outplacement programs.

Greg Weiss has authored two books about career transitioning and is soon to release a third. He has deep expertise in outplacement and employee onboarding, and is the Founder of Career365 (formerly CareerSupport365) – a leading Australian employee transitioning firm, specialising in outplacement and employee onboarding.

How Outplacement Can Minimise the Impact of “Survivor’s Guilt” in Remaining Employees

When we consider the impact of job losses – such as recent redundancies or retrenchment arising from the COVID-19 pandemic – it’s natural to focus on those directly impacted by the cut-backs, i.e. those employees who have lost their jobs.

However, the effect of job losses on remaining employees can be particularly traumatic, especially if they experience what’s known as ‘survivor’s guilt’ or ‘survivor’s syndrome’ – a feeling of guilt over the fact that they kept their jobs, while colleagues and friends were not so lucky.

In this article, I’ll be looking at the effects of survivor’s guilt on remaining employees, and how employers can minimise the impact of this syndrome – in order to maintain engagement, motivation, and trust – using a solid outplacement strategy.

What is survivor’s guilt?

Survivor’s guilt can occur in relation to a traumatic event in which someone survived when others did not. As a result, the survivor may feel guilty that they escaped the effects of the event, question why they survived when others didn’t, and wonder whether there was something they could have done to prevent the event from happening.

On a more extreme level, survivor’s guilt is often associated with events involving major trauma, such as death arising from terminal illness, war, or an act of terrorism. However, any event which is traumatic – such as seeing those around you losing their jobs – can result in a degree of survivor’s guilt in those who escaped the direct impact of the event.

The symptoms of survivor’s guilt can include the following:

  • Irritability and anger
  • Fear and confusion
  • Lack of motivation
  • Trouble sleeping
  • Obsessive thoughts about the situation
  • Feelings of helplessness and disconnection
  • Physical symptoms such as headaches and nausea

What is the impact of survivor’s guilt in the workplace?

Considering the symptoms of survivor’s guilt, it’s not hard to see why employees experiencing this syndrome would struggle to work productively and maintain focus in their jobs.

In fact, a study by the Society for Human Resource Management (SHRM) of more than 4000 workers who kept their jobs following organisational lay-offs, reported that over 75% had experienced a drop in their own productivity. The study also revealed that:

  • 87% were less likely to recommend their organisation as a good place to work
  • 81% believed customer service has declined
  • 77% saw more errors being made in the workplace
  • 64% said their colleagues’ productivity has declined

As a result of survivor’s guilt in response to job losses, workplaces are likely to face problems ranging from reduced engagement and productivity, lower motivation, less trust between employees and their employer, and higher overall levels of anxiety, stress and fear.

In our current climate, the trauma of redundancies or retrenchment will be compounded by the fear and disruption caused by the COVID-19 outbreak. More than ever, the feeling of uncertainty over what the future may hold – and the sudden nature of these changes in the workplace – is likely to add to the anxiety, confusion, and guilt experienced by surviving employees.

How can employers use outplacement to minimise the impact of survivor guilt in remaining employees?

Offering an outplacement program to departing employees can be extremely effective – not just in terms of supporting outgoing staff members, but also in the positive message it communicates to those remaining in employment.

Outplacement offers reassurance to surviving employees

For employees who have not suffered job losses, seeing their former colleagues being treated with fairness and respect during their departure period will provide reassurance that they too will be treated well and receive adequate support should they face the same circumstances.

An outplacement program shows employers are committed to upholding their values

Remaining staff members who witness outgoing employees receiving outplacement support will also have greater faith in the values of their employer. Offering outplacement sends a clear message that the employer is committed to upholding their values at every stage of the employee lifecycle, which will lead to employees feeling more trusting of their employer.

Seeing their colleagues receive outplacement provides peace of mind

Witnessing the level of support their departing employees have received via an outplacement program is likely to contribute towards greater peace of mind for remaining employees, leading to lower levels of fear and anxiety. By supporting the mental health of employees in this way, they will be able to work more effectively, have greater focus, and feel more engaged and connected with their employer.

Outplacement can result in higher levels of motivation and productivity in surviving employees

As a result of making surviving employees feel more reassured and confident, employers can help their staff members work more productively and feel motivated to continue performing their jobs as normal. By lessening the impact of survivor’s guilt, outplacement can help ensure surviving employees aren’t held back by anxiety, fear and confusion following redundancies or retrenchment.

Career365’s affordable online outplacement programs – delivered via online training modules and video-based coaching – can be accessed from any location, at any time, on any device, making them ideal for a COVID-19 environment.

If you need support or advice on outplacement services for retrenched employees in the wake of the COVID-19 pandemic, visit www.career365.com.au to find out more about our fully online outplacement programs.

Greg Weiss has authored two books about career transitioning and is soon to release a third. He has deep expertise in outplacement and employee onboarding, and is the Founder of Career365 (formerly CareerSupport365) – a leading Australian employee transitioning firm, specialising in outplacement and employee onboarding.

Contact Us

You can phone us or use the enquiry form to find out more.

Please be sure to enter your contact information accurately to avoid delays in our staff responding.

Is your business prepared for COVID-19?

We've created a comprehensive COVID-19 preparedness toolkit, to help you ensure you're giving your departing employees the best chance of landing on their feet if you need to downsize as a result of the COVID-19 Pandemic.

Fill in your details and over the next 5 days, we'll send you 5 eBooks to help you navigate this difficult time.

Success. You'll receive your first email from us shortly.