Outplacement

What is outplacement?

Definition: Outplacement is a service provided by organizations to support employees who are transitioning out of the company, typically due to layoffs, restructuring, or downsizing.

The goal of outplacement is to help affected employees find new employment opportunities as quickly and smoothly as possible, while also minimizing the negative impact on their careers and well-being.

Key Components of Outplacement Services

• Career Counseling: Professional career counselors work with individuals to assess their skills, strengths, and career goals. This personalized guidance helps employees understand their career options and develop a clear job search strategy.
• Resume and Cover Letter Assistance: Outplacement services often include help with creating and refining resumes and cover letters to ensure they effectively highlight the individual’s skills and experience.
• Job Search Support: This includes providing access to job listings, networking opportunities, and job search resources. It may also involve training on how to use job search platforms and professional networks like LinkedIn.
• Interview Coaching: Employees receive training and practice to improve their interviewing skills, helping them to present themselves confidently and effectively to potential employers.
• Skills Training and Development: Some outplacement programs offer courses and workshops to help employees develop new skills or update existing ones, making them more competitive in the job market.
• Emotional Support: Transitioning out of a job can be a stressful experience. Outplacement services often include counseling and support groups to help employees cope with the emotional aspects of job loss and career transition.
• Networking Opportunities: Facilitating connections with industry contacts, alumni networks, and professional associations can help employees expand their network and increase their chances of finding new job opportunities.

Outplacement examples

Outplacement services can vary widely depending on the provider and the specific needs of the departing employees. Here are a few examples of outplacement services and programs that organizations might offer:

Example 1: Comprehensive Outplacement Program

Scenario: A large corporation is undergoing a significant restructuring and must lay off a substantial number of employees across various departments.

Services Offered:

• Initial Counseling Session: Each affected employee receives a one-on-one session with a career counselor to discuss their career goals and the support they will need.
• Resume and Cover Letter Workshops: Group workshops are conducted to help employees craft effective resumes and cover letters, followed by individual review sessions.
• Job Search Strategy: Employees are guided on how to develop a job search strategy, including the use of online job boards, networking techniques, and leveraging social media.
• Interview Preparation: Mock interview sessions with feedback to improve interviewing skills and build confidence.
• Skills Training: Access to online courses and certifications to help employees upgrade their skills or learn new ones relevant to the job market.
• Emotional Support: Counseling services and support groups to help employees manage the emotional stress of job loss.
• Job Fair Access: Invitations to exclusive job fairs and networking events organized by the outplacement service provider.

Example 2: Executive Outplacement

Scenario: A mid-sized company needs to let go of a few high-level executives due to a merger.

Services Offered:

• Personalized Career Coaching: One-on-one sessions with experienced career coaches specializing in executive transitions.
• Branding and Networking: Assistance in developing a personal brand, including optimizing LinkedIn profiles and creating a professional portfolio.
• Strategic Job Search: Guidance on navigating the executive job market, including accessing hidden job opportunities through networks and headhunters.
• Negotiation Coaching: Support in negotiating job offers, compensation packages, and severance agreements.
• Leadership Assessment: Tools and feedback to help executives understand their leadership style and areas for improvement.
• Transition Support: Help with considering alternative career paths, such as consulting, entrepreneurship, or board positions.

How Does Outplacement Work?

Outplacement services are designed to assist employees who are transitioning out of a company, helping them find new employment opportunities and navigate their career paths. Here’s how the typical outplacement process works:

1. Initial Setup: The employer partners with an outplacement service provider. The scope of services, duration, and specific needs of the employees are discussed and agreed upon.
2. Notification to Employees: Affected employees are informed about the availability of outplacement services. This can be done during the layoff notification meeting or shortly after.
3. Intake and Assessment: Each employee undergoes an initial assessment with a career coach or counselor to understand their career goals, skills, and areas where they need support. This helps tailor the outplacement services to their specific needs.
4. Personalized Career Counseling: Employees receive one-on-one career counseling sessions. These sessions help them develop a job search strategy, identify potential career paths, and set realistic goals.
5. Resume and Cover Letter Assistance: Professional resume writers help employees create or update their resumes and cover letters to effectively market their skills and experience.
6. Job Search Support: Employees are given access to job search resources, including job boards, networking opportunities, and databases of job listings. They may also receive training on how to use these tools effectively.
7. Interview Coaching: Through mock interviews and coaching sessions, employees improve their interviewing skills and build confidence.
8. Skills Development: Some programs offer access to online courses and training to help employees update or acquire new skills relevant to their career goals.
9. Emotional and Psychological Support: Counseling services and support groups help employees cope with the emotional impact of job loss and transition.
10. Ongoing Support and Follow-Up: Employees receive continuous support and follow-up sessions until they secure new employment. This may include additional counseling, job search advice, and networking opportunities.

How Much Does Outplacement Cost?

The cost of outplacement services can vary widely based on several factors, including the level of service provided, the number of employees being served, and the duration of the program. Here are some typical cost ranges:

• Basic Services: These might include resume assistance, basic career counseling, and access to job search resources. Costs can range from $1,000 to $2,000 per employee.
• Mid-Level Services: This level usually includes more personalized support, such as one-on-one career coaching, interview preparation, and some skills training. Costs can range from $3,000 to $5,000 per employee.
• Executive Services: Comprehensive outplacement programs for senior executives can include extensive one-on-one coaching, personal branding, networking opportunities, and negotiation support. Costs for these services can range from $10,000 to $50,000 or more per executive.
• Group Services: For large groups of employees, some providers offer discounted rates. Costs for group outplacement services can vary based on the size of the group and the level of support provided.

What Services Aren’t Included in Outplacement?

While outplacement services are comprehensive, they typically do not include the following:

1. Direct Job Placement: Outplacement services provide support and resources to help employees find new jobs but do not guarantee job placement. The responsibility for securing a new job ultimately lies with the employee.

2. Legal Advice: Outplacement counselors can offer general advice on employment-related issues, but they do not provide legal services. Employees needing legal advice must consult with an attorney.

3. Financial Assistance: Outplacement programs do not offer financial assistance, such as loans or grants, to employees. They may provide advice on managing finances during unemployment, but financial support is not included.

4. Severance Negotiation: While outplacement counselors can offer general advice on severance packages, they do not negotiate severance terms on behalf of employees. Employees may need to seek legal or financial advice for severance negotiations.

5. Health and Benefits Administration: Outplacement services do not typically manage health benefits or other employee benefits. These matters are usually handled by the company’s HR department or benefits administrator.

6. Permanent Career Management: Outplacement services are typically time-limited and focused on immediate job transition. Long-term career management and development are not usually part of the service.

7. Personal Expenses: Any personal expenses incurred during the job search process, such as travel for interviews, attire, or relocation costs, are not covered by outplacement services.

FAQ

How long do outplacement services typically last?

The duration of outplacement services can vary based on the provider and the package selected. They can range from a few weeks to several months, or even up to a year for executive outplacement services.

How are employees notified about outplacement services?

Employees are typically informed about outplacement services during the layoff notification meeting or shortly thereafter. This information can be provided by HR or through a formal communication from the company.

What is the cost of outplacement services?

The cost can vary widely based on the level of service and the number of employees being supported. Basic services might cost between $1,000 and $2,000 per employee, while executive outplacement services can cost from $10,000 to $50,000 or more per executive.

What factors should be considered when selecting an outplacement service provider?

Consider the provider’s reputation, the comprehensiveness of their services, their experience in your industry, the flexibility of their programs, and feedback from other clients. It’s also important to ensure that their approach aligns with the company’s values and needs.

Can outplacement services be customized for different levels of employees?

Yes, outplacement services can be tailored to meet the needs of different levels of employees, from entry-level workers to senior executives. Customization ensures that each employee receives the appropriate level of support for their career stage.

What should employees expect from outplacement services?

Employees can expect personalized career counseling, assistance with their job search, resume and cover letter preparation, interview coaching, access to job search resources, skills development opportunities, and emotional support.

Are outplacement services confidential?

Yes, outplacement services are typically confidential. Employees can share their concerns and career goals with their counselors without fear of this information being disclosed to their former employer or others.

How do outplacement services help with job searches?

Outplacement services assist with job searches by providing access to job listings, helping with networking strategies, offering job search training, and providing tools and resources to enhance the employee’s job search efforts.

What if an employee declines outplacement services?

If an employee declines outplacement services, it’s important to respect their decision. However, HR can still provide information on other resources and support available to them, such as unemployment benefits and community services.

How can the effectiveness of outplacement services be measured?

Effectiveness can be measured by tracking metrics such as the time it takes for employees to find new jobs, the level of employee satisfaction with the services, and feedback from both employees and managers on the process. Regularly reviewing these metrics can help refine and improve the outplacement program.