This is a common question that is asked when people learn I work at Keystone Partners and what we do. I understand the reason for the question as investing in outplacement services may seem counter-intuitive, especially during a RIF, when you are looking to cut costs and save money. However, it makes good business sense to provide outplacement support to your impacted employees for a number of reasons.

Providing employees with outplacement support has several benefits to the organization. Let’s explore some of these benefits and the ROI.

Benefit #1: Turn Employees into Loyal Alumni

Providing outplacement support and giving your departing employees the most positive an experience possible can better position your organization for the future. These impacted employees have the potential to be future customers, vendors, boomerang employees, and ambassadors for the company.

Benefit #2: Protect the Company Brand and Reputation

Companies that do not manage the transition well and provide little or no support to their impacted employees can cause significant damage to their public image and reputation and disenfranchise remaining employees.  Customer or client relationships could also be negatively impacted. Cutting corners on such important decisions almost always turn out to be a poor investment. Conversely, providing outplacement benefits and support to your departing employees during such a critical time enhances the organization’s brand with both employees and customers. Today there are online forums such as Glassdoor that provide departing employees with a voice in the marketplace. These employee reviews, along with media accounts of employees’ negative experiences when being laid off, leaked company memos, etc., all have the potential to either strengthen or weaken your employer brand based on how the layoffs were handled and the news was delivered to employees along with how the impacted employees were treated on their way out.

Benefit #3: Increased Engagement and Morale

When remaining employees see how well laid off employees are treated on the way out it increases employee engagement, retention, and overall morale. These departing employees are friends and colleagues of the remaining employees, many of whom have worked together for years. When RIFs are managed poorly, it can impact the performance and culture of the organization for years to come.

Benefit #4: Minimizes the Risk of Costly Litigation

Employees who feel mistreated during a RIF may choose to pursue litigation against their former employer, which can become very expensive for the organization. Outplacement support and career coaching can reduce the perception of being mistreated, thus minimizing the chances of this type of litigation.

Benefit #5: Lowers Unemployment Costs

Some studies suggest that those who take full advantage of outplacement programs, like those offered by Keystone Partners, can land new roles in 50% less time. Not only does this benefit the impacted employees, but also saves the organization money on unemployment costs.

Benefit #6: Aligns with the Organization’s Values

Finally, supporting impacted employees with outplacement is not only the right thing to do, but is also a great way to signal to employees that the organization cares about them and will stay true to their values even during unforeseeable challenges. Unfortunately, there are many examples over the past year of RIFs conducted without this alignment to company values.

Keystone Partners: Your Outplacement Partner

Providing outplacement as a benefit to departing employees is a smart and strategic business decision. While this may seem counter-intuitive there is a significant amount of data supporting the fact that outplacement benefits provide a strong ROI to employers.

Keystone Partners has over 40 years’ experience supporting organizations with their RIF planning and execution and providing outplacement and career transition support to impacted employees. With the best consultant to participant ratio in the industry, the most one-on-one consulting time, and an average NPS score of over 80, Keystone Partners provides the highest quality career transition consulting in the industry. Interested in learning more? Contact us today to find out how Keystone’s team of career transition experts can help your team navigate the difficult and sensitive RIF process.

In November 2022, SHRM shared that employers in the U.S. plan to boost salaries an average of 4.6 percent in 2023, up from 4.2 percent in 2022, according to the latest Salary Budget Planning Report by consulting firm WTW. It is critical for organizations to be aware of these trends and data in today’s competitive labor market as they fight to retain and engage key talent. While the average annual pay raise has traditionally been around 3%, 2022 saw much larger pay increases and 2023 may see the largest increases since 2001. 

There are a lot of moving pieces in making informed, data-driven decisions for your organization. These include: 

• Merit pay increase forecasts 
• How inflation impacts merit increases 
• Looming concerns surrounding potential layoffs 
• A possible recession in the upcoming year 
• The importance of aligning your merit pay increases to increasing employee retention, particularly your top talent and high performers 

Unfortunately, employers today could find themselves in a conundrum as they will likely be giving their employees historically high merit pay increases in 2023. However, it is possible that these higher increases still may not meet the needs and expectations of their employees, who are faced with historically high inflation. Due to inflation, even with a 4.6% pay increase, some employees may still feel like they have taken a step backwards when it comes to their pay. 

Below, we have highlighted additional data related to merit raises in the midst of record-high inflation to help guide employers when making these decisions. 

2023 Merit Pay Increase Forecasts 

• A September 2022 SHRM article detailed how salary increase budgets in the U.S. are projected to grow, on average, just over 4 percent for 2023, which is less than half of the current annual inflation rate of 8.5 percent, according to survey data. Employers say inflationary pressures and the ongoing challenges of finding and keeping workers are the main reasons for the higher projected increases.   
• A September 2022 Fortune article detailed how a quarter of employers that were surveyed plan to give increases in the range of 5–7%. And 48% said they planned on salary budget increases that are higher or significantly higher than in 2022.   
• According to Human Resource Executive, HR leaders are planning to turn to larger-than-usual salary increases in 2023, driven by a hot job market and record-high inflation.  
• WorldatWork’s “2022-23 Salary Budget Survey” revealed that salary increase budgets reached their highest level in 20 years in the United States, rising to an average of 4.1% in 2022 with a 3.8% median. 

As organizations make decisions around merit pay increases for 2023, there are many important variables to consider in order to remain competitive with the outside market. It is critical to approach these decisions with as much knowledge and preparation as possible, armed with the necessary data and information on market trends around merit increases, inflation, employee retention, and the various other factors that impact merit increases. 

The reality is that merit pay increases will likely still lag inflation and employees may be disappointed. By conducting the appropriate research up front, employers can feel confident about their merit pay increase policies and be better prepared for these conversations with their employees. 

3 Keys to Conducting a Respectful and Compassionate RIF

Whether you may be facing a large RIF, or a smaller scale layoff, there are important factors to consider as you deal with the inevitable planning complexities. Here are the three key areas our client focused on to conduct and implement a successful RIF.  

1.          Proactive Preparation 

A critical part of an empathetic and compassionate reduction in force is preparation and planning. In this situation, our client reached out to us months in advance to discuss how we could support their upcoming RIF. Some of the key planning steps included: 

• Identifying the date of the action
• Identifying members of the RIF management team
• Establishing a project timeline
• Determining the list of impacted employees
• Selecting the level of outplacement programs and severance for each employee
• Notifying managers and teams

The goal of this advanced preparation was to ensure the self-respect and dignity of both the impacted and remaining employees.

2.          Collaboration & Logistics 

After the initial planning steps were completed, the next phase was logistics and collaboration planning. Working in a hybrid environment adds another level of complexity when planning a RIF, especially regarding logistics and collaboration.

The organization leveraged technology to overcome these logistical challenges, ensure the right people were where they needed to be, and confirm the information delivered to the impacted employee was correct and accurate.

A plan was put in place to ensure the best possible experience for impacted employees, and included:

• Virtual meeting technology for separation meeting notifications
• Shared drives with clearly defined access to the important documents
• Shared timetable spreadsheets updated “on the fly” so managers and HR notifiers had information in real time
• Slack channels to collaborate and communicate any changes to the schedule or urgent messages to the Control Room

3.          Empathetic Execution 

The day prior to the notification meetings, the organization’s HR leaders and representatives from Keystone Partners delivered a thorough training session to the notifying managers and HR staff. This training was designed to ensure the seamless conduct of the upcoming layoff notification meetings, and to confirm the notifiers were comfortable with delivering the message to the impacted employees. The logistics of the technology plan were also reviewed, as there were many moving parts involving the organization’s managers, HR team, and Keystone. 

The notification timeline was also reviewed while we trained the notifiers on the specific language to use, how to deal with the emotions of notifications, and the importance of empathy and compassion when delivering the message.

CEO’s Commitment to Compassion 

Having HR and Keystone Partners collaborate and lead the leadership team through the messaging and logistics was critical to the successful execution of this RIF. Another key aspect was the organization’s CEO, who was visible and vocal through the entire process. The CEO echoed our message regarding the importance of communicating with compassion and empathy and reminding the leaders to:

• Not make this about themselves
• Be present for the meetings
• Listen intently

Notifying employees that their positions have been eliminated is one of the hardest things a leader can do. Being able to take yourself out of the equation and assume the role of a true servant leader in this situation makes a huge difference and the impacted employee can feel that.

Positive Employee Experience = Protecting Your Employer Brand 

How an organization gauges the success of a layoff will vary based on your organizational values and culture. At Keystone Partners we get to experience first-hand each employee’s experience through the layoff process as we continue to work with them after the event. Not only do the engagement and utilization numbers tend to be higher with a well-orchestrated RIF event, but survey data and overall employee feedback tends to be much more positive. This creates the results that the organization is after – providing employees with the best experience possible considering the circumstances, and protecting your employer brand by demonstrating compassion, empathy, and respect for your employees. 

Interested in learning more? We have been helping organizations of all sizes, across all industries, conduct successful separations for more than 40 years. Whether you are laying off a single individual or are planning a large-scale reduction in force, we can help ensure everything goes smoothly while also protecting your employer brand. Contact us today to learn how we can help with your layoff-related needs.

Why Focus on Leadership Development in Times of Uncertainty? 

It is during these uncertain and turbulent times that you need strong leadership the most. Organizations need leaders to show the way forward and act decisively. It is these leaders that set the example for everyone in the organization and can be the difference between the business thriving or dying. Supporting these leaders with leadership development and coaching during these challenging times will position the organization for success.

After a downsize or reduction in force there is much anxiety and uncertainty with the remaining staff. If not handled correctly this can be accompanied by high turnover. Investing in your key leaders with leadership development during this difficult time will help to retain these critical folks as well as the people that work for them. A recent global survey from McKinsey & Company shows that “uncaring and uninspiring leaders” are a big part of why people leave their jobs (34%), along with a “lack of career development” (41%). Following an event such as a reduction in force it is necessary to re-recruit your employees that remain in the organization. To do this, it is essential to have a strong leadership and management team that can inspire and motivate the remaining staff.

All Technical Experts ≠ Great Leaders… But Investing in Development Can Change That

In biotechnology organizations, many of the key leaders and critical talent are part of the research and development (R&D) team. This is where the science and intellectual property is created. Often these employees are technical experts but struggle with the leadership and interpersonal skills that are necessary during times of change.

The technical skills that make one an expert in their field are not the same skills necessary to be successful in leading a team during challenging times. These are a completely different set of skills, capabilities, behaviors and approaches, and include: communication, delegation, influencing and motivating others, goal-setting, holding people accountable, and dealing with conflict. Investing in the development of this population is a great start to position the organization for success. As my colleague Bob Hewes, practice lead for leadership development group at Keystone says, “Special attention needs to be given to this population. Technical people don’t necessarily deal with these issues often. Developing these folks on how to communicate effectively to both the employees that remain in the organization and those impacted by a reduction in force is critical.”

How to Develop R&D Experts Within a Biotech Company

What are some ways to develop R&D leaders within a biotech organization? There are several different options available to an organization, a few examples of which include: 

Hosting a Leader Exchange

Tapping into internal resources such as C-suite and senior leaders for mentorships and leader exchanges. Hosting an event where respected executives or senior leaders in the organization speak to developing and emerging leaders about their experiences with a certain leadership topic (for example, thinking strategically, communicating effectively, delegation, dealing with conflict) can be a great place to start. Having an internal senior leader as a mentor or part of a leader exchange can be very impactful and relevant to the specifics of the organization. “There is real power in technical experts hearing examples and stories from other technical experts who are now senior leaders within their organization,” says Hewes.

Group Development Programs Using Internal or External Coaches

If there are several leaders that share common leadership development challenges, another option would be to form a cohort and have a group development program facilitated either with an internal resource or an external consultant/coach. This would bring the power of peer-to-peer learning into a group setting. To super-charge the impact of the group program, you could also incorporate a leader exchange event into one of the group sessions.  

One-on-One Executive Coaching

Engaging with an executive coach for one-on-one coaching for a biotech leader is a great investment as they will work closely with the leader to create a personalized development plan and partner with the leader to implement that plan, giving them the tools and capabilities necessary to deal with leadership challenges as they arise.

Now is the Time to Invest in the Leaders of Your Biotech Organization 

While the timing may not always feel ideal, investing in developing leaders during times of change and challenges can position the organization for future success. Strong leadership will impact the engagement and retention of employees across the organization. This is especially critical within the R&D organization of a biotech where much of the critical talent resides. There are several internal and external leadership development options for this population, such as a mentorship, leadership exchange, group development programs, and one-on-one coaching.  Don’t let challenging and turbulent times hold you back from developing your key leaders. This can be a game changer and set the organization up for long-term success.

Keystone Partners has been working with biotechnology companies for decades. We have extensive experience helping our clients fine-tune the skills of current leaders, develop their next generation of leaders, and successfully execute of RIFs of all sizes. Want to find out how we can help your organization overcome its current challenges? Contact us today to learn more. 

With this evolution there are certain skills that technology leaders must develop and today’s digital transformation technology leaders need to be change agents for the entire organization. Digital initiatives today require more than innovation and updated technology skills, they also require a massive change in corporate culture. For today’s technology leaders, taking the lead as a cultural change agent is becoming critical to their success.

The war for technology talent is fierce. Not only must technology leaders recruit and attract top talent, they must also create a culture within their organizations that supports and retains this talent. Hiring superstars doesn’t matter if you can’t keep them. Technology leaders who build a culture where their high performers have a diverse career path and employees are retrained with skills for the future will have significant advantages in attracting talent from outside and retaining talent in their organizations.

The leadership requirements outlined above are not about technical skills but rather soft skills such as communication, collaboration with other business leaders, mentoring and developing teams, and leading change. Organizations need to equip their technology leaders now more than ever with these tools through leadership development and coaching programs to become the broad business leaders necessary to be successful in today’s environment.

Organizations that fail to provide technology leaders with leadership tools and training are at risk of falling behind competitors who have innovated their business models through digital transformation. Technology leaders that can actualize technology innovations that provide business opportunities, be a change agent for the organization to embrace these innovations, and recruit, develop, and retain the best talent, will give the company a significant competitive advantage.

Do the technology leaders in your organization have the tools and training to give your company this kind of an advantage over the field? If not, don’t be left behind -close the soft skills gap in your technology leaders!

In today’s rapidly evolving business landscape, technical experts and subject matter specialists play a pivotal role in driving innovation and problem-solving within organizations. However, transitioning from a technical expert to a managerial leader within an organization poses unique hurdles. In this blog, we delve into the complexities and difficulties faced by technical experts as they transition into managerial roles, and explore strategies to help them succeed in their pursuit of becoming effective leaders within their respective companies.

Technical vs. management career path

When it comes to career advancement, professionals often find themselves at a crossroads, faced with two distinct paths: the technical path and the management path. Each option offers unique opportunities and challenges, catering to different skill sets and aspirations. Let’s explore the differences and similarities between these two paths.

Technical career track

The technical career path is designed for individuals who excel in specialized skills and enjoy hands-on work. Professionals on this trajectory often become subject matter experts in their field, continuously honing their technical knowledge and expertise. They take pride in solving complex problems, developing innovative solutions, and pushing the boundaries of their domain. In a technical career, growth typically comes through mastery, as individuals progress from entry-level roles to senior positions or even specialized leadership roles.

Management career track

The management career track, on the other hand, is geared toward individuals who possess (or want to develop) strong leadership and interpersonal skills. Aspiring managers seek opportunities to lead and motivate teams, driving collective success and overseeing the strategic direction of projects and initiatives. Managers are responsible for nurturing talent, promoting collaboration, and making decisions that align with organizational goals. Growth in a management career often involves moving up through managerial ranks, such as becoming a team lead, department head, or even a C-level executive.

Factors that make the transition difficult

As you can see, different people and different personalities might be better fits for one versus the other. It’s well documented that making a move from individual contributor to manager and leader of an organization (no matter how small) can be a difficult transition. But why does this move seem especially challenging for technical experts? In my current role, I have been fortunate enough to have several conversations with CIOs and IT executives around leadership development for their technical staff. Here are some common themes that often cause friction in this transition, and advice from these leaders to help ease the process and change.

Motivation

As an expert, you need to understand what is involved in the new leadership role and have a genuine desire and drive to take on these responsibilities. New leaders that are truly motivated by developing and mentoring their people and building a high-performing team tend to have an easier transition. Individuals whose goal is to remain technically hands-on and continue to be the top technical expert will typically gravitate toward technical work that fulfills this. And when there are competing management priorities, this often is to the detriment of their people and the team.

As my colleague Bob Hewes, practice lead for group leadership development says, “moving into management and leadership should be a choice.” In other words, forcing someone to fill a role they’re not motivated about will lead to them (and those around them) struggling.

Alignment on expectations

An open dialog between the organization and its experts on the expectations of a leadership role will help set them up for success. Often there are unrealistic expectations and a lack of alignment with the organization on the definition of success. If an SME enters into a new management role with unrealistic expectations — to continue to be fully hands-on technically, to gain more prestige and personal recognition, more money, and less stress — this can (and most likely will) lead to disappointment and frustration with the new position.

The organization will typically expect new managers to deliver results through building and running a high-performing team, to think more strategically, wear multiple hats, attend management meetings, and motivate their team. So making sure that everyone is on the same page (whether through compromise or not), is critical to making the transition from expert to manager more smooth.

Skillset

Many experts are likely promoted to leadership roles based on their technical skills and knowledge. Unfortunately, these technical skills are not the same skills necessary to be successful in most new management positions. “Leading and managing is a completely different capability set from one’s technical skills and we take that difference for granted,” says Hewes. New managers will be expected to learn a completely new set of skills, capabilities, behaviors, and approaches for success in the management role. These include communication, delegation, influencing and motivating others, goal-setting, holding people accountable, and dealing with conflict. For those not willing to adapt and improve their skills in these areas, managing will be more difficult and it will hurt the organization’s long-term talent development due to poor management under this person.

Should you become a manager or stay technical?

It’s clear moving from a technical expert to a new management role can be a difficult change and daunting challenge. Ultimately, the decision between the technical career path and management track depends on individual strengths, interests, and long-term goals (and a company’s internal mobility capabilities). Some professionals thrive in technical roles, finding fulfillment in solving intricate challenges and staying deeply involved in their field. Others are drawn to leadership and envision themselves guiding teams and shaping organizational strategies. Here are some tips to come to a decision and ensure the process is as smooth as possible:

First, experts should perform a self-assessment to better understand their motivation to move into management and evaluate if they are ready. If they determine after self-assessment they’re ready for management and leadership responsibilities, there should be a thorough discussion between manager and SME about the role and the expectations. Before moving forward, they should have a clear understanding of what they are walking into. Also, the experts must be comfortable “letting go” of technical aspects of their current roles and be willing to invest that time in their team and develop others to become the new technical stars. Engaging with a mentor or executive coach is a great investment, as the coach or mentor will work closely with them to help guide through these internal and external conversations, as well as give them tools to deal with management challenges as they arise.

How Keystone Partners can help

While the transition to a leadership role is certainly not easy for many technical experts, current executives and leaders who have gone through a similar move recommend proper preparation, self-evaluation, and leveraging a coach and/or mentor to smooth out this potentially bumpy transition.

At Keystone Partners, our talent development and leadership development services are designed to empower professionals across diverse industries and regions nationwide. With our broad expertise and personalized approach, we provide the guidance and resources needed to navigate the path to effective leadership. Together, let’s shape a successful future for you and your team.

This week as we celebrate Veterans Day, we take time to honor America’s veterans for their patriotism, love of country, and willingness to serve and sacrifice for the common good. For those of us who have served, Veterans Day is significant. This day prompts the nation to take time to consider who our American Service-Members are, and what they volunteer to do in the service of our nation. There are many ways to honor our veterans. We can send notes, say thank you, and even share a meal encouraging them to share stories of sacrifice, duty, and honor. One unique way we can honor our veterans, however, is to take time to consider the challenges veterans may have transitioning from the military into the civilian sector and even more importantly, consider what valuable characteristics a veteran may bring to your organization of which you may be unaware.

The Transition is Difficult

The 2019 Military Family Lifestyle Survey, conducted by the Blue Star Families organization, found that more than half (56%) of the veterans who responded indicated their transition from the military to the civilian sector was difficult or very difficult. The same survey found that 42% of veteran respondents reported they did not feel well prepared to navigate their transition to civilian life. There are many variables that add to the difficulty of transitioning, but in our experience the top variables that have a direct impact into entering the civilian workforce include awareness of career opportunities, inability to articulate how military experience can translate to a civilian role, and the lack of understanding within the civilian population of the experiences of a veteran.

Help for the Transitioning Veteran

Fortunately, there are non-profit organizations focused on helping these military veterans with this difficult transition.  One organization, American Corporate Partners, engages the civilian workforce to provide career guidance to military veterans as they transition into civilian life. ACP helps returning veterans and active duty spouses find their next careers through one-on-one mentoring, networking, and online career advice. ACP leverages the expertise of the American workforce to provide career guidance to veterans as they transition back into civilian life. Other organizations that help transitioning veterans include Warrior Rising (helping veteran entrepreneurs start or accelerate their businesses), MVPvets (assists and prepares transitioning service members for meaningful employment in medical device and life science companies), Still Serving Veterans (empowering veterans to build meaningful lives through connections to fulfilling careers, benefits, and services).

As leaders in business, we can help by ensuring that our organization is military-friendly. Military.com, a leading website for military members, veterans and their families, recently shared Five Things to Help Recruit Veterans to Your Business. This list includes solid guidance that serves to grow awareness, understanding and sensitivity for military veterans within an organization. As you consider the list of things we can do, you’ll realize that the fundamental mindset underlying any effort to become more military-friendly is similar to any other segment of our workforce. We must make the effort to become more aware of the military veteran.

The Benefits of Hiring a Veteran

With over 1.3 million service members on active duty and about 200,000 service members transitioning out of the military each year, it is a glaring miss not to actively seek out veterans. This is a talented pool of job seekers that can add a lot to all of our organizations. As business and HR leaders we must educate our staff and everyone in the process including recruiting, interviewing, and hiring managers to make sure everyone understands why we focus on military veterans.

SHRM recently published a powerful article entitled Why Hire a Vet? The Business Case for Hiring Military Veterans that provided a strong case for bringing military veterans into any organization. The article outlines the following traits that are commonly found in veteran hires based on their unique experiences and training:

• Leadership and teamwork
• Problem solving and decision-making
• Attention to detail
• Character and integrity
• Broader global perspective

By bringing these key competencies and characteristics, along with many others, to your company, veteran hires provide an opportunity to really raise the organization’s workforce level and produce even more positive business results.

This Week, Let’s Honor Our Veterans

Veterans Day is a time to celebrate and appreciate our nation’s veterans, and recruiting these veterans is one of the best ways to say ‘thank you’. In doing so not only are you helping out veterans but also raising your organization’s workforce to the next level in many of the areas outlined above. As business leaders who understand the difficulty military veterans face when entering the civilian workforce and the benefits these veterans bring to an organization, we have an opportunity to change how we approach veteran hiring, including:

• Bring veterans within the organization into the hiring process. This will help hiring managers and HR recruiters have a clearer picture of the veteran candidate’s work history
• Raise awareness of common misconceptions and inaccurate information around recruiting veterans, which can cause negative perceptions (for example: inflated estimates of how many veterans experience post-traumatic stress disorder)
• Invest resources in onboarding, career development, and retention for these veterans
• Track veteran recruitment, performance, and retention to better understand what works, and what doesn’t work

Hiring veterans can add tremendous benefit and value to an organization and also provide a good career opportunity for a veteran transitioning to the civilian workforce.  The question is, are you willing to invest the time and resources to work with these veterans to understand what they bring to the table?