The math: how does this help an employer?

Assisting former employees can produce multiple financial benefits for the former employer:

• Reduced unemployment tax: Companies pay unemployment taxes based on their experience rating, which is determined by the number of former employees who have filed claims. By helping employees transition to new roles, companies can potentially reduce the number of claims and lower their tax rates.

• Minimizing litigation costs: Outplacement services can reduce the likelihood of wrongful termination lawsuits, which can be costly to defend and settle.

• Preserving morale and productivity: When companies provide outplacement support, it can help maintain the morale and productivity of remaining employees, reducing the potential disruption and costs associated with turnover.

• Recovering severance investments: In some cases, outplacement services can be more cost-effective than paying severance packages without support. By helping terminated employees find new roles quickly, companies can potentially recover some of the severance investment through reduced payments.