Outplacement Support: What Businesses Need to Know

outplacement support

In this article, we'll explore the essentials of outplacement support, offering insights into how businesses can implement this practice effectively and the profound impact it can have on both the organization and its departing employees.

What is outplacement?

Outplacement is a service companies use to help their former employees transition to new jobs. Unlike a severance package that usually includes a lump sum of money, outplacement offers practical help.

This service is provided by outplacement firms, which specialize in job search assistance and career transition services.

Key components of outplacement support

Outplacement services can vary, but here are the core components most outplacement firms offer:

  • Career coaching: Personalized advice to help people understand their strengths and how to market themselves.
  • Resume writing: Professional help to make a resume stand out in the job market.
  • Job search assistance: Support in finding relevant job openings and making connections.
  • Interview preparation: Training and tips to excel in job interviews.
  • One on one coaching: Personal guidance through the career transition.
  • Outplacement counseling: Emotional and psychological support during the job search.
  • Outplacement assistance: Additional resources like workshops on personal branding or networking.

When do businesses use outplacement?

Businesses often turn to outplacement during layoffs, restructuring, or when they need to let go of employees for other reasons. It’s a way to show you care about your team's future, even when you can’t keep them on board.

Outplacement can also help maintain a positive company culture and reduce the risk of wrongful termination lawsuits.

Is outplacement a legal requirement?

No, offering outplacement services is not legally required. However, it's considered a best practice and reflects well on a company’s reputation. It can also mitigate risks associated with layoffs, such as unemployment benefits claims and workplace violence.

By investing in outplacement, you're not just helping your former employees; you're also protecting your business and boosting the morale of the remaining team.

How outplacement services benefit both the employer and the employee?

When companies go through changes, they sometimes have to let people go. This is hard for everyone. That's where outplacement services come in. They're a special kind of help from companies that specialize in this, called outplacement providers. These services are good for both the company that's making changes and the people who are leaving. Let's look at how.

For the employer:

  • Boosts company reputation: Offering outplacement shows you care about your team, even when you can't keep them. This looks good to everyone outside and inside the company.

  • Keeps morale up: When the team sees you helping their colleagues, it makes them feel better about where they work.

  • Lowers risk of legal problems: Helping people find new jobs can mean they're less likely to feel they were treated unfairly. This can mean fewer wrongful termination lawsuits.

  • Saves money in the long run: Even though there's a cost to outplacement services, they can save money by reducing unemployment claims and the costs of potential legal issues.

For the employee:

  • Gets personalized help: They get one-on-one coaching on things like how to look for jobs and how to do well in interviews.
  • Supports their career path: They get advice on what might be a good fit for them next, based on their skills and what they like to do.
  • Helps them bounce back faster: With all this support, they're more likely to find a new job quicker.
  • Makes the transition smoother: Learning new skills like resiliency training can make it easier to handle changes.

Impact on employer brand and reputation.

Offering outplacement services through a reliable outplacement firm can really make a company stand out. It shows that the company is responsible and cares about its people, even when tough decisions have to be made. This can lead to a stronger brand and reputation.

People talk about their experiences, so when a company helps its exiting employees, word gets around. This can attract future talent who want to work for a company that treats its people well.

The role of outplacement in reducing unemployment claims and potential litigation.

By providing outplacement support, companies help former employees find new jobs faster. This means fewer people need to claim unemployment benefits for a long time. Also, when employees feel supported in their transition, they're less likely to feel wronged and file a lawsuit. This can save the former employer from the time, cost, and stress of legal challenges.

Offering outplacement services shows that a company takes its role seriously in supporting employees, even when parting ways, which can lead to a more positive overall outcome for everyone involved.

When to consider outplacement services: scenarios and timing?

Manager in conversation supporting employee

Thinking about when to offer outplacement services? Here are some common times companies decide to help their team with these services.

  • During layoffs: This is the most common time. If your company needs to reduce the number of people working there because of budget issues or other reasons, outplacement can help those leaving.

  • When reorganizing: Sometimes, jobs change or disappear as companies grow or change direction. Helping people find new paths is key here.

  • Before retirement: Some companies offer outplacement to help long-time employees transition to what’s next.

  • Timing is everything: Start offering outplacement as soon as you know someone will be leaving. This gives them the best chance to find something new quickly.

Choosing the right outplacement provider: factors to consider

Picking the right outplacement provider is crucial. Here’s what to keep in mind:

  • Services provided: What do they offer? Look for resume review, job coaching, and group coaching. Make sure they match your team's needs.

  • Costs: Outplacement can range from a few hundred dollars to much more. Understand what you're getting for the price.

  • Success rate: How well do they do? Ask how quickly job seekers find new roles and in what kinds of jobs.

  • Support level: How much one-on-one time will your outgoing employees get? Is there a good mix of online resources and personal coaching?

  • Reputation: A provider with a good name is likely to care about your employees as much as you do.

The process of integrating outplacement services into a company’s exit strategy

Making outplacement a part of your exit plan is smart. It shows you care and can protect your brand reputation. Here’s how to weave it into your strategy:

  • Plan early: Don’t wait for job cuts to think about outplacement. Have a plan ready.

  • Communicate clearly: Tell your team about the outplacement support they'll get. This can ease worries and show you’re there to help.

  • Customize the support: Not everyone needs the same help. Some might need more job coaching, while others are looking for help with their resumes.

  • Follow up: Check in on how your former employees are doing with the outplacement program. This shows you still care and can give you insights into the process.

  • Evaluate and adjust: After you've used outplacement services, look at what worked and what didn’t. This can help you make better choices next time.

Outplacement isn’t just a nice-to-have. It’s a way to support your team during tough times, keep morale up among those who are staying, and protect your company's reputation. It’s about doing right by your people, no matter where their careers take them.

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In wrapping up, outplacement services are more than just a corporate courtesy; they're a crucial component of a thoughtful exit strategy.

By offering tailored support, from resume crafting to personalized coaching, businesses not only aid their former employees in finding new beginnings but also bolster their own reputation and morale. Remember, investing in outplacement is investing in people, and that’s always good business.

Frequently Asked Questions

  • Yes. Outplacement can be tailored to fit individual needs, focusing on career goals, skills, and industry preferences. Services range from personalized coaching to specific job search strategies.

  • It varies. Access can range from a few months to over a year, depending on the chosen package, with common durations being 3 to 6 months. The aim is to support the job search until the right opportunity is found.

Topic: HRM
Rinaily Bonifacio

Written by:

Rinaily Bonifacio

Rinaily is a renowned expert in the field of human resources with years of industry experience. With a passion for writing high-quality HR content, Rinaily brings a unique perspective to the challenges and opportunities of the modern workplace. As an experienced HR professional and content writer, She has contributed to leading publications in the field of HR.


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