Compassionate Downsizing? Give Me a Break

In the wake of increasing layoffs in the last three years, more companies are offering what they call “compassionate” downsizing, which emphasizes “career growth” rather than immediate re-employment, according to a Conference Board study released this week.

Compassionate downsizing is the offering of services beyond outplacement to help employees find new jobs and to help transition employees with respect and care. It can become an opportunity for business success by preserving employee morale and generating continued goodwill in the community.

The Conference Board study is based on a survey of 369 senior human resources executives of mid to large sized global companies.

Most surveyed firms now offer severance pay, outplacement/job placement assistance, continued healthcare benefits, and priority consideration for reassignment to another job within the company to employees who have been laid off.

Some firms are enhancing their severance packages by providing additional benefits, such as career and educational counseling, references, interview coaching, and education and training benefits.

Education and training benefits are offered as a supplement to outplacement, not as a replacement for it. While 84% of survey participants report their companies offered traditional outplacement assistance, 13.6% say that they also offer education and training as transition benefits.

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