Outplacement Is An Essential Service To Offer During A Recession

Human resources goes over an outplacement plan with an employee.

In this week's edition of the Work It Daily Weekly Update, we discuss the importance of employers offering outplacement services and briefly touch on how recent events nationally impact the workplace.

The Importance Of Offering Outplacement Services

Human resources official goes over outplacement options with an employee.


Last week, the National Bureau of Economic Research officially declared that the U.S. economy was in a recession.

For the millions of people who have lost their jobs, this doesn't come as a surprise. Making matters worse is the fact that the newly unemployed are heading into this recession lacking the basic job search skills they need to navigate the competitive job search process that accompanies a recession.

In some ways, this would be an easy problem to address if more companies offered outplacement services to the employers they let go. Unfortunately, most don't!

Work It Daily founder and CEO J.T. O'Donnell touched extensively on the issue recently via her LinkedIn newsletter and podcast "JT Talks Jobs."

Most companies offer job coaching/outplacement to laid-off executives, but not the rest of the workforce, according to O'Donnell.

As part of tax code changes made in 2017, people are no longer allowed to write-off job search and coaching as an expense on their taxes, which puts even more burden on those impacted by layoffs, while companies are able to write it off as a business expense.

O'Donnell suggests that those who have been laid off should go back to their former employer and ask for assistance with job coaching, while challenging managers or business leaders that have laid people off to go back to their executive teams and ask them to find it in their budget to pay for outplacement for their staff.

There's a misconception that outplacement is expensive and will break the bank for their companies. However, this is no longer the case! Services, like the ones offered by Work It Daily, are both affordable and can be done virtually through a computer or phone application.

Companies need to be more open-minded about helping layoff victims secure outplacement/career coaching services. Not only is it the right thing to do in this recession, but it's good business!

For one, the sooner your former employees get jobs, the less you pay in insurance rates. But, most importantly, employees will remember how they were treated in their time of need. Those employees will take to sites like Glassdoor and Indeed to share their experiences, and bad experiences have a way of sticking with companies and hurting their employer brand.

No one knows how long this recession will be, or the ultimate damage from it, but anything a company can do to help laid-off employees will go a long way towards putting the company on the right side of history.

Good News Of The Week

Peloton recently donated $500,000 to the NAACP.


Exercise and media company, Peloton, was one of the first companies to make a major statement about racism in the wake of George Floyd's death.

Peloton made the poignant statement via Twitter and the message included the announcement that they were making a $500,000 donation to the NAACP.

Peloton has been praised for the tone of the message and taking immediate action with their donation. They were also praised for the way they ended their message. "We have more work to do. Will you join us?" This serves as an acknowledgement that statements and donations won't solve the problem alone, and a call to action for other businesses to step up and help in the process.

Resource Of The Week

Coworkers discuss diversity and the company's role in improving society.


As stated above, many U.S. companies are trying to figure out ways to show support and join the fight against racism.

For some companies, it's putting out public statements against racism. Others are donating to African-American causes, and many more companies are holding discussions about how to meaningfully participate in making positive changes to both the workplace and society.

Out of all these steps, having ongoing discussions about race and diversity is the most important. It's important that discussions not only happen now in these times of unrest, but they continue. The only way to make positive change is to constantly keep these issues at the forefront.

What meaningful change looks like and the timetable for it will vary by company and that company's circumstances, but one thing is certain moving forward: remaining silent isn't an option.

Businesses are an essential part of society, and all of society must participate in making a difference. The Harvard Business Review recently linked some helpful articles and books to help discussions about race and there are also many great organizations that empower African Americans that are worth learning more about.

Give yourself an even greater edge by joining Work It Daily's career growth club today! Get access to one-on-one career coaching, resume and cover letter reviews, online tutorials, and unlimited networking opportunities—all in your back pocket!

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