Outplacement: Is It Right For You?
Outplacement services are a valuable tool for both employers and employees. These services provide support and resources to employees who have been laid off or terminated from their jobs. Outplacement services help employees transition into new employment opportunities, while also providing employers with a cost-effective way to handle layoffs.
What Is Outplacement?
Outplacement services are a set of resources and support services that employers offer to their employees who have been laid off or terminated. The goal of these services is to provide support to employees during the transition period after job loss. This support may include job search resources, resume writing assistance, interview coaching, networking opportunities, and career counseling.
The core purpose of outplacement is to prepare outgoing employees for future success, thus we measure the success of outplacement services on whether outgoing employees find new employment in their chosen field quickly, or not.
What Does Outplacement Involve?
Although this service was historically restricted to very senior staff, it is becoming more common for companies to offer this service to employees at all skill levels, to help them progress in their career journey. As such, the need for outplacement specialists is growing.
Internal Human Resource Departments can manage outplacement services. Still, it is better to outsource this function to specialist outplacement agencies, as this option helps outgoing employees focus on the process and not be distracted by any negative emotions they have towards the people that informed them of their employment ending. We must also note that the retrenchment process does erode an individual’s self-confidence, and therefore working with an independent agency will be more effective at rebuilding their confidence and getting them into a positive state of mind. This positivity greatly improves the outgoing employee’s chances of being hired elsewhere.
The process generally involves one-to-one or group-based mentoring which will evaluate the transferable skills of the individual, and determine if any upskilling is required for them to achieve the next step in their career growth.
Resume writing is emphasized in the outplacement process, with specialists helping candidates write more effective resumes, as well as reviewing the candidate’s online presence and educating them on best practices for LinkedIn networking and getting noticed on recruitment websites. This training also incorporates job interview preparation and cover letter writing.
How Does Outplacement Benefit the Employee?
Outplacement services offer several benefits to employees who have been laid off or terminated. First, they provide support during difficult times. Losing a job can be a stressful and emotional experience, and outplacement services can help employees manage their emotions and stay focused on finding a new job.
Additionally, outplacement services can provide employees with valuable resources and support for their job search. This may include resume writing assistance, interview coaching, job search resources, and career counseling. These resources can help employees find new job opportunities more quickly and with less stress.
Finally, outplacement services can help employees maintain their confidence and self-esteem. When employees are provided with resources and support during their transition period, they are more likely to feel valued and respected. This can help them maintain their confidence and self-esteem during a difficult time, which can be critical for a successful job search.
How Does Outplacement Benefit the Employer?
Letting people go is never easy for companies, especially if they are being forced to make star employees redundant due to restructuring. By offering outplacement services, companies are giving their employees something of value to help them move on successfully.
Outplacement services offer several benefits to employers. First, they can help maintain a positive relationship with laid-off employees. When employees are treated with respect and given the necessary resources to find new employment, they are more likely to speak positively about their former employer. This can help maintain the company's reputation and prevent negative publicity.
Additionally, outplacement services can help employers avoid legal disputes. When employees are provided with resources and support during their transition period, they are less likely to file wrongful termination lawsuits. This can save employers a significant amount of time and money in legal fees.
Finally, outplacement services can help employers attract and retain top talent. When employees see that their employer is committed to supporting them even during difficult times, they are more likely to remain loyal to the company. Additionally, potential employees may be more likely to accept a job offer from a company that offers outplacement services as part of their benefits package.
Is Outplacement Right For My Company?
Outplacement services can benefit any employer that may need to lay off or terminate employees, regardless of the size of the company. However, larger companies may have more frequent layoffs, and therefore may find outplacement services to be a more cost-effective option. Additionally, companies that are concerned about maintaining their reputation or avoiding legal disputes may also benefit from offering outplacement services.
Although it is becoming more common, not all companies have embraced outplacement services, and it isn’t necessarily right for your company. If you’re not sure if you should offer this service, then there is a quick check to see if outplacement is feasible.
- Are you a corporation with more than 500 employees? If yes, then you should definitely offer outplacement services, especially as a contract with an outplacement agency can work out very cost-effective because of the sheer number of employees covered. You are also more at risk of having to implement a restructure than a small company.
- Are you an SME with 50 - 500 employees? You can benefit from outplacement services, but the costs may be prohibitive during a financially challenging time. You need to decide if you value reputation and ethical dealings with employees high enough to justify the cost.
- Are you a small business with less than 50 employees? The cost of contracting an outplacement agency may be too cost prohibitive to justify, and you have the benefit of not having as much media focus as large corporations face when undergoing corporate restructuring. However, this doesn’t mean you can’t offer outplacement services. Wizco offers you access to experts for once-off fees and provides you with resources to complete the outplacement process internally.
In conclusion, outplacement services offer significant benefits to both employers and employees. They provide employees with valuable resources and support during a difficult time, while also helping employers maintain their reputation and avoid legal disputes. Any employer that may need to lay off or terminate employees should consider offering outplacement services as part of their benefits package.
If you want to find out more about how Wizco can help you with outplacements, please reach out or book a demonstration.