Return on investment (ROI) considers many variables and includes social and financial considerations

Outplacement Return on Investment (ROI)

There are many factors that go into the calculation of return on investment for outplacement services. The ROI includes social and financial considerations.

Because there are so many variables and because most of the measures are unique to the individual employer's future experience, there is no way anyone can realistically claim to calculate an accurate ROI up front. However; that does not mean there isn't a significant return on investment — especially in the case of outplacement by subscription.

We cover outplacement ROI in greater detail at Outplacement ROI Summary, but here are the most-often referenced areas of ROI for the employer.

The Basics of How You Benefit

Helping displaced employees get reemployed is a win/win situation. The employer …

  • gains recognition for being socially responsible
  • helps avoid and mitigate discrimination or other retaliatory claims by displaced employees
  • reduces their unemployment compensation costs
  • enhances their reputation among remaining employees as an employer that cares
  • adds to a feeling of fairness by covering all levels of employees
  • provides valuable services and enhances morale without incurring additional HR overhead or infrastructure
  • adds a low cost/high value service to their employee benefit offerings
  • can realize a ROI that far exceeds cost

Some Return-on-Investment (ROI) Considerations

When it comes to ROI, subscription-based outplacement is hard to beat. Here are some basic ROI considerations that apply to Job Hunter Pro's subscription-based outplacement.

  • If it reduces the average term of unemployment by less than one-half day, it would pay for itself
  • If it avoided one retaliatory claim, it would pay for itself many times over
  • If it helped you retain customers because of perceived fairness, the ROI would be huge
  • If it helped reduce turnover among retained employees, the ROI would be significant
  • If it replaced a traditional outplacement program, the savings would be phenomenal

An Example - ROI from Unemployment Compensation Cost Mitigation

An often overlooked area for outplacement cost savings is management of unemployment compensation (UC) costs. The exact ROI is unique to each individual employer, their state regulations, economic conditions, job market, etc. but the savings potential is significant. The above link takes you to a page that includes a UC whitepaper, tables of state UC tax rates and a calculator that lets you input your own data and get an instant estimate of savings.

The ROI concept is simple. Just as wellness programs, exercise and diet can help people stay well, job search, resume, interviewing and related skills can help people get and stay employed. Because subscription-based outplacement covers your entire workforce, it has ROI potential that is miles ahead of what traditional plans provide.

It's easy for employers to forget that unemployment compensation applies to any employees who worked for them during what the UC law defines as the base period (the first four of the last five calendar quarters). This means that employees who leave your employment for another job and subsequently become unemployed during the base period can create liability for you.

The good news is you can reduce UC costs without adding to your workload or spending money on infrastructure. It’s easier than you may think.

If you agree with the following three paragraphs, you can potentially save thousands, or even millions for very large employers or PEOs. The larger your workforce, the more you can save.

Paragraph I: Former employees who have good job search skills are far more likely to get and stay employed. Not only will they have shorter terms of unemployment, but also those who are employed are far less likely to file other employment-related claims.

Paragraph II: Web-based technology makes it easy to get comprehensive job search tools and skills into the hands of former employees, even if they haven’t worked for you for many months!

Paragraph III: Accomplishing the above using an employee self-service system that won’t add to HR’s workload would make such a solution very attractive.

If the above paragraphs have some appeal for you, give us a call to learn more about how adaptive outplacement can help you save on unemployment compensation costs.

Helping displaced employees is an important mission for socially responsible organizations. With Job Hunter Pro, employers demonstrate their commitment to employees ... we do the rest.

Take advantage of the benefits of Job Hunter Pro's adaptive subscription-based outplacement solution. It's quick, easy and economical.

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