Reduction in Force

Reduction in force (RIF) means when the company permanently eliminates a job position. There is a similar term called furlough, in which an employee’s hours are temporarily reduced. Similarly, a layoff is a process in which a company may let employees go due to financial troubles or lack of available work but the company can fill the positions in the future. The reduction in force or RIF is different from layoff and furlough. A layoff could become a RIF if the company never hires for the positions closed. When there is a permanent lower headcount in the company then it is called a reduction in force. 

RIF might occur due to several reasons, whenever a business changes its working direction, restructures, permanently closes an office or branch, moves to a new location undergoes a merger, or if a business is acquired by another company, or is in financial trouble then there is a high chance of occurrence of RIF. 

The RIF is a big decision that affects the lives of everyone involved with a business, from numerous employees to managers. It creates an impact on other remaining employees, on the organization’s reputation, customers, consumers, and potential job applicants in the future. The decision for RIF must be taken after careful consideration that it is the right solution, how it will be implemented, and how existing employees will feel confident in their careers. 

RIF can affect a company’s reputation. Their consumers and competitors may see the decision as an indication that the company is falling and performing badly. Every perception will have its consequences. In the worst-case scenario, if the company conducts a RIF that disproportionally affects women, old age employees, or on basis of color, these employees can file discrimination complaints against the company.

No matter whatever the reason for RIF is, former employees will be tense about their jobs and worry about what may come next. They might feel as if they did something wrong, although RIFs are not a direct reflection of any individual’s job performance. Employees may feel betrayed or angry and can talk poorly about their experience to friends or online.

Outplacement Support before RIF

To build a healthy connection with existing employees and show that their work was valued, companies may offer complimentary outplacement support. It is an essential RIF unemployment benefit that helps to exit employees in finding new jobs. In this outplacement support, job seekers can receive support, including a freshly written, targeted, and optimized resume, a powerful social presence, and access to a highly targeted tech lead that can help them get a new job easily.

Exiting employees who feel supported at the time of RIF are less inclined to give bad reviews or talk poorly about their former employers on social media platforms, where the company will be judged based on public opinion. They are more likely to say YES if any further opportunity arises in the company.  

Any kind of RIF sees a decrease in productivity of existing employees, and outplacement positively affects in this case. Offering outplacement during a reduction in force shows remaining employees that they will care in the future if anything happens.