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Retrenchment & Outplacement

Retrenchment & Outplacement

Retrenchment & Outplacement



There are 7 key stages to good retrenchment management.

Stage 1 – Strategy
Developing a plan for: engaging managers; consulting with employees; communicating the change and implementing the change.

Stage 2 – Minimising Retrenchments
To explore options for minimising the damaging effects of retrenchment on the organisation.

Stage 3 – Selection
To carefully determine the criteria by which the various positions will be selected.

Stage 4 – Notification
Planning when, how and who will deliver the message to the organisation and assist with support.

Stage 5 – Selecting an Outplacement Provider
A big advantage in cushioning the blow and helping people make the transition.

Stage 6 – Stabilisation & Evaluation
Turning the attention to those indirectly affected on whom the future of the organisation depends.

Corporations who choose to provide outplacement services to employees are seen to value and respect the contribution made by individuals during the course of their employment. By treating former employees with dignity and providing tangible advice and assistance generates a powerful motivational message throughout the organisation.

As a result, companies who provide outplacement are more likely to maintain or increase productivity and enhance their market perception as a fair employer therefore maintaining their ability to attract and retain quality staff. The cost of gaining these financial and psychological advantages averages less than 5% of the total costs of separation.

If you are interested in assistance with retrenchment management or outplacement services, click on the link to have a HR Solutions consultant discuss your needs.