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Outplacement Improves Bottom Line, Finds Right Management Global Study

Increased Productivity, Profitability, Morale and Satisfaction Provide Strategic Advantages and Competitive Edge

Dec 12, 2013

MILWAUKEE, Dec. 12, 2013 /PRNewswire/ -- Companies that offer outplacement services to employees affected by restructuring are more likely to experience increases in productivity, profitability, stock price, morale and satisfaction. In addition, they report lower levels of employee turnover and sick days, compared to companies that do not offer career transition services. These findings are part of a global survey of more than 1,700 business leaders and human resources professionals, conducted by Right Management, the talent and career management experts within ManpowerGroup.


Leading companies assist exiting employees with outplacement to find new jobs and career opportunities. Of the organizations surveyed across 10 countries by Right Management, 85% that offered outplacement indicated it was very/extremely important to maintain positive relations between current and departing employees. Further, 83% provided outplacement as part of their business strategy to restructure and be more competitive.

"Our research shows that when companies offer outplacement during a restructure or merger, they gain positive returns on that investment," said Bram Lowsky, Group Executive Vice President Americas for Right Management. "How you right-size your organization and prepare it for growth is directly impacted by how you treat departing employees. Providing outplacement help directly increases their speed and success in landing their next great job. It also demonstrates fairness and support, which in turn helps to maintain positive relations and build engagement with employees who remain with the company."

According to the global survey findings: 

  • In the 12 months following a downsizing, 34% of companies that bought outplacement reported productivity increases versus 28% of non-buyers.
  • Profitability increased for 46% of buyers versus 44% of non-buyers. The Americas region showed the greatest difference of 47% and 41% respectively.
  • Company stock price (where applicable) increased for 31% of buyers versus 10% of non-buyers. In fact, 17% of non-buyers experienced a drop in stock price.
  • Unwanted turnover decreased for 17% of buyers versus 14% of non-buyers with the biggest gap in Asia Pacific, where 27% of buyers reported a decrease in unwanted turnover versus 16% of non-buyers.
  • Sick days decreased for 28% of buyers, compared with 18% of non-buyers.
  • Employee morale increased for 28% of buyers versus 20% of non-buyers.
  • Among outplacement buyers, 38% reported an increase in employee satisfaction versus 14% of non-buyers.

"In a highly competitive global marketplace, organizations restructure to align their talent with their business objectives," said Lowsky. "While there are many variables that might influence a company's stock price or profitability, if the restructuring process isn't handled in the right way, including providing outplacement, the very goals that were the catalyst for the changes are put at risk. What's more, when employers offer outplacement services, they are investing in their own brands as their efforts will positively impact their remaining employees along with their ability to attract and retain future talent."

The study identified that outplacement is most frequently offered during a restructuring (68%), merger or acquisition (53%) or leadership change (43%).

The outplacement survey was commissioned by Right Management and conducted between January 4 and May 14, 2013 by independent research firm LHK Partners of Newtown Square, Pa. A total of 1,721 organizations participated and were not selected by Right Management.

As the world's leading outplacement provider, Right Management's success is built on 30 years of unequaled global and local experience, our ability to tap into ManpowerGroup's unparalleled knowledge of workforces, and our $2 million annual investment in proprietary research. This drives our ongoing innovation and helps us anticipate trends, assess market shifts and fuel our leading edge solutions through continuous improvement as we help our clients and their transitioning employees succeed in today's competitive environment. As the global market leader who sets the benchmark for the industry, we ensure we meet the needs of both traditional and technologically-based buyers of outplacement.

The results of the outplacement survey are summarized in an infographic that is available for download at this link.  In addition, the white paper, "Why Organizations Rely on Outplacement: A Global Perspective," can be obtained by emailing Shari Fryer at

About Right Management
Right Management is the global leader in talent and career management workforce within ManpowerGroup. We design and deliver solutions to align talent strategy with business strategy. Expertise spans Talent Assessment, Leader Development, Organizational Effectiveness, Employee Engagement, and Workforce Transition and Outplacement. With offices in over 50 countries, Right Management partners with companies of all sizes – including more than 80% of the Fortune 500 – to help grow and engage their talent, increase productivity and optimize business performance. Read the latest insights from our global thought leaders at and follow @RightUpdates on Twitter for talent management news

About ManpowerGroup
ManpowerGroup™ (NYSE: MAN) is the world leader in innovative workforce solutions that ensure the talent sustainability of the world's workforce for the good of companies, communities, countries, and individuals themselves. Specializing in solutions that help organizations achieve business agility and workforce flexibility, ManpowerGroup leverages its 65 years of world of work expertise to create the work models, design the people practices and access the talent sources its clients need for the future. From staffing, recruitment, workforce consulting, outsourcing and career management to assessment, training and development, ManpowerGroup delivers the talent to drive the innovation and productivity of organizations in a world where talentism is the dominant economic system. Every day, ManpowerGroup connects more than 630,000 people to work and builds their experience and employability through its relationships with 400,000 clients across 80 countries and territories. ManpowerGroup's suite of solutions is offered through ManpowerGroup™ Solutions, Manpower®, Experis™ and Right Management®. ManpowerGroup was named one of the World's Most Ethical Companies for the third consecutive year in 2013, confirming our position as the most trusted brand in the industry. See how ManpowerGroup makes powering the world of work humanly possible at Follow ManpowerGroup Chairman and CEO Jeff Joerres on Twitter:

SOURCE ManpowerGroup

For further information: Shari Fryer, +1 970.846.6607,; or Kate Huskin, +1 414.906.6253,