The Future of Work: How companies are using total rewards and outplacement to retain and engage talent

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In 2024, an increasing number of companies are recognizing that attracting and retaining talent requires more than competitive salaries. A comprehensive total rewards strategy that includes outplacement services is becoming the new benchmark for organizational excellence.

With nearly half of North American businesses poised to revamp their rewards strategies in the coming year, it’s clear that the traditional paycheque isn’t going to cut it anymore in 2024.

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The evolution of employee rewards

With the dynamic nature of today’s job market, businesses are expanding their vision of employee compensation to encompass not only traditional benefits, but also forward-thinking outplacement services.

While 71% in the US and 69% in Canada are still increasing salaries, there’s also an emphasis on career support, with growing numbers channeling resources into these areas as well.

This holistic approach underscores a commitment to employee well-being throughout the entire employment lifecycle, including transition periods following layoffs.

Forward thinking organizations are setting themselves apart by offering robust outplacement support, which includes personalized career coaching, resume writing assistance, and job search services. These services are a safety net, and a signal to current and prospective employees that the company cares for its workforce’s future, regardless of market dynamics.

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Measuring impact

The effectiveness of incorporating outplacement services into total rewards strategies is measurable through several key indicators, including enhanced company reputation, lower post-layoff litigation risks, and improved morale among remaining employees.

These indicators can help companies track and address the challenges employers are facing in employee engagement and turnover. Polls show a majority of firms believe they’re on the right track, yet there’s room for improvement, especially taking into consideration the modest satisfaction rates reported by employees.

Including employee feedback on outplacement services in exit interviews and tracking the post-employment success of former employees can provide valuable insights into the impact of these programs. Companies can leverage this data to refine their approach, ensuring they meet the needs of their workforce effectively.

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Employee Perspectives

Employees today seek assurance that their employers will support them, not just while they are on the job, but also as they transition out. The inclusion of outplacement services in the total rewards package can significantly influence an employee's perception of their employer.

Knowing that a company provides outplacement services gives prospective and existing employees confidence in the employer's commitment to organizational welfare. This sentiment underscores the psychological benefit and security that comprehensive total rewards and outplacement services offer.

However, only 60% report feeling “somewhat satisfied” with their total rewards, suggesting that while the direction is right, the destination has not  yet been reached by most employers.

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Conclusion

As we navigate the complexities of the modern workplace, the integration of outplacement services into total rewards strategies emerges as a key differentiator for employers. It reflects a deep understanding of the evolving needs of the workforce and a commitment to supporting employees in every phase of their career.

The journey towards a more inclusive and supportive workplace is always evolving, and by embracing outplacement as part of a comprehensive total rewards approach, companies are both enhancing their attractiveness as employers while also building a resilient and loyal workforce prepared for the future.

Let’s align your current strategies with the evolving expectations of today’s workforce together. Book your demo with Thrive below and let's set a new standard for the industry in employee care.