In the life sciences sector, where innovation and passion drive groundbreaking research, the reality of job insecurity can cast a shadow over the excitement and promise of this dynamic field. Layoffs, influenced by regulatory changes, outsourcing, product pipeline adjustments, and mergers, can affect various companies differently depending on their business model and market conditions.
The consequences of these layoffs extend beyond the immediate impact on affected employees, potentially disrupting the broader research, development, and manufacturing ecosystems. According to Fierce Biotech and Biospaces’ layoff trackers, new companies are unfortunately added almost daily. As layoffs become more prevalent, effective management practices including sensitivity, clear communication, and robust support for affected employees are essential. This approach helps mitigate the negative impacts and ensures organizational resilience and stability during challenging times.
Being that the only constant in life sciences is change, leaders in this industry often ask, “Is investing in an outplacement service worth it?” The simple answer is “Yes.”
The Positive Impact of an Outplacement Provider
While workforce reductions are typically a last resort, the narrative can shift positively with outplacement programs. These services, which are relatively inexpensive compared to the costs of litigation or hiring new employees, offer valuable support to departing staff. They should be viewed not just as a financial expenditure but as a strategic investment that helps affected employees to transition smoothly, preserves positive employee relations, and safeguards the company’s employer brand. By facilitating a supportive exit process, outplacement programs help maintain the organization’s reputation and demonstrate a commitment to employee well-being even during difficult times.
1. Launching the Affected Employees Forward
When an employee steps out of a meeting letting them know their job was eliminated, panic, fear, and uncertainty are imminent. Whether the career coach is onsite to help with notification, or standing by virtually to get them started, the feeling of relief knowing someone is there to help them find their next job is invaluable. Having a dedicated career coach during such a critical time can help turn an overwhelming experience into a more manageable and positive transition, giving the employee the tools and confidence they need to move forward. According to a study by CareerBuilder, outplacement program participants find new jobs 50% faster than those who do not receive outplacement support.
Furthermore, outplacement programs often lead to long-term career benefits for participants. For instance, a study by the International Association for Outplacement Professionals (IAOP) found that 70% of individuals who received outplacement support reported improved career satisfaction and advancement opportunities in their subsequent roles. One of CCI’s participants who was laid off from a global CRO stated “I had some reservations when I first signed up but was pleasantly surprised by all the knowledge and resources that were given to me. Having a career coach was instrumental in helping me through the process. From resume development, LinkedIn preparation, and job search techniques to networking groups/webinars, the skills were useful in landing interviews and finally a new role. This program and my coach changed my life for the better and helped keep me sane during this tough time.”
2. Safeguarding the Company’s Reputation
Ensuring employees feel secure during layoffs is both a compassionate and cost-effective strategy, as it helps preserve the company’s reputation and maintain morale among the remaining staff. Personalized outplacement programs are instrumental in this process, as they not only assist departing employees in finding new opportunities more quickly—thereby reducing the likelihood of negative reviews on job boards like Glassdoor and Indeed—but also enhance the company’s image. In a survey administered by The Harris Poll, offering such programs improves public perception, with 83% of Americans believing it reflects well on the company and 80% indicating it would make them less likely to speak negatively about the organization. Additionally, investing in outplacement services can mitigate legal risks associated with layoffs, leading to fewer employment-related legal claims and lower associated costs, ultimately benefiting both the departing employees and the organization.
3. Reinforcing Culture and Loyalty
Layoffs can significantly impact employee morale, creating anxiety about job security and feelings of uncertainty and sadness as colleagues depart. This situation can erode trust in management, especially if the layoffs are perceived as poorly handled or unfair, potentially diminishing overall loyalty and commitment to the organization. Additionally, layoffs might signal deeper organizational issues, leading remaining employees to question the company’s future direction, which can affect their engagement and outlook. Outplacement programs play a crucial role in addressing these challenges by providing support to departing employees and helping to maintain a more stable and positive environment for those who remain, thus preserving morale, trust, and productivity during times of organizational change.
What to Look for in a High-Quality Outplacement Program
Choosing to invest in an outplacement service is a wise decision for any company, but the effectiveness of the program largely depends on the quality of the provider. Job loss affects many aspects of an individual’s life, including financial stability, emotional health, relationships, and self-esteem. A well-designed outplacement program offers the structure, guidance, and skills necessary for participants to secure new opportunities. When evaluating outplacement programs, it is crucial to focus on three key factors:
1. Personal Touch
Outplacement programs that fail to nurture individuals’ motivational and cognitive resources are often less effective. Many outplacement firms offer job search tools, but a growing trend towards AI-based solutions can sometimes strip away the essential personal touch. Effective outplacement services should include in-person or virtual one-on-one coaching, as this personalized approach is crucial for helping participants navigate their career transitions successfully. Personalized coaching provides tailored guidance and support, addressing the unique needs of each individual and enhancing their chances of finding a new role.
As Karen Livingston, a Senior Career Coach with CCI notes, “The life sciences industry has such specialized knowledge and skills for each role within it. As a Career Coach, I partner with my participants to identify how their specific expertise is relevant, and current, and can be presented in a way that highlights their success stories and accomplishments.”
2. Comprehensive Services
A common misconception regarding outplacement programs is that they are a resume writing service. While this is an important factor, it is only one of several aspects of a program. A quality outplacement program will offer a 1:1 career coach who has been hand-selected to match the personality and experience level of the impacted individual. During these meetings, the coach will help the participants with their job search/marketing strategy, resume and LinkedIn preparation, negotiation guidance, access to weekly workshops, networking groups, access to a compensation expert, and so much more. Karen also states that “personalized attention, skill enhancement, confidence building, and providing direction and clarity” are contributors to her participants’ success in an outplacement program.
3. Industry Familiarity
Life sciences employees often have specialized skillsets and knowledge that are highly valued but not always easily transferable. Outplacement services tailored to the life sciences sector can provide niche career counseling and job search assistance that acknowledge the unique qualifications and experience of these professionals, helping them find new opportunities more aligned with their expertise. Furthermore, the life sciences sector often experiences rapid changes due to technological advancements, regulatory shifts, and market fluctuations. Finding an outplacement provider who understands these industry trends will be helpful for the participants’ success.
The life sciences industry can be volatile at times. Should an organization experience a reduction in force, an outplacement program not only holds the ability to give resources to the affected employees but also safeguards the organization’s reputation by reinforcing positive culture and loyalty. When looking for a quality outplacement program, it is important to find a firm that has industry experience/knowledge, comprehensive services, and offers a personal touch. High-quality outplacement programs are vitally important to life sciences companies to manage workforce transitions effectively while supporting both departing employees and the organization’s long-term objectives.
Cory Amenta
Director of Business Development
[email protected]
LinkedIn – Cory Amenta
