What are outplacement services and why do they matter? Even seasoned HR leaders may ask these questions – particularly given today’s short supply of talent. According to a LinkedIn study, 93% of organizations are worried about retention. Engaging outplacement services during a layoff will help you retain your remaining staff.
Outplacement is offered to employees affected by involuntary separations to help them move on successfully and to protect your employer brand. Outplacement services, also known as career transition coaching, are coaching programs to help separated employees land their next position faster or even start a business. Employers pay for these services, so they are free to the exiting employee.
Why do employers pay for outplacement? When separated employees make a smooth transition, they are more likely to become happy employee alumni with good things to say about your brand.
Does Outplacement Still Matter in a Robust Job Market?
Is outplacement necessary when the job market is hot? Yes. Even in a good economy, companies that are growing and profitable routinely reduce their workforce. And without a strategic use of outplacement, the effect of these layoffs can be damaging to the employer brand.
Yes, the labor market is tight, and some jobs are plentiful, but that doesn’t mean your exiting employees will find a desirable job or make a smooth transition. Emotions get in the way. Outplacement counseling doesn’t just address the chore of finding a new position; outplacement coaches address the human side of job loss and the emotional needs of the employee.
Outplacement is About Personal Branding
Exceptional outplacement services place a strong emphasis on personal branding. Career coaches who are experts in job searches guide the individual to create strong branding strategy to market themselves online. They help former employees optimize their efforts by explaining the systematic and technology-driven processes hiring managers use today. Employers rely on social media and artificial intelligence to find candidates, so job seekers have to understand how to be “seen” in such an environment.
So, while outplacement used to be focused on resume writing and access to job boards, today it’s that and much more. As you evaluate your talent needs and long-term strategies, keep these key items in mind as you consider which outplacement services to include in your severance package.
What are Outplacement Services for HR & Your Organization?
Laying staff off is a heavy decision to make and impacts multiple areas within your organization. Outplacement services aren’t just for the exiting employees. They are also available to support the HR team and those who manage the layoffs. Outplacement firms walk alongside you as you progress through each phase of the staff reduction.
Outplacement services for your organization include:
- Assisting organizations with making layoff decisions.
- Helping managers communicate layoff decisions to employees.
- Supporting remaining staff members so they stay productive during change.
The format these services take varies. Options include consulting, strategic planning, career coaching, job search programs, group workshops, and team trainings.
What are Outplacement Services for Exiting Employees?
Job seekers who work with professional outplacement services find work more than 2.5 times faster than those who don’t. Exiting employees benefit from one-on-one coaching that is tailored to their unique needs and career goals. Along with coaching support, the outplacement services include online tools and resources, career assessments, mock interview scenarios, salary research, social media assistance, and so much more.
What Outplacement Services are Not
Outplacement is not akin to a personal shopper who does all the work. An outplacement coach does not procure jobs, place people in jobs, or apply for jobs on behalf of the job seeker. The coach is an expert in hiring processes and trends. Coaches work with the job seeker to overcome any obstacles in finding a new job. They may work on building a stronger personal brand, interviewing skills, networking habits, or even managing the emotional toll of job loss.
Outplacement Outcomes – Empathy & Experience Work
At IMPACT Group, job search coaching is a core competency. We support people through career transition during good and bad economies, offering job search services for participants in outplacement programs as well as for people who are moving to new communities (due to corporate relocation of a spouse or partner). So no matter what the economy is doing, job search support is our continuous mission. And, we’ve developed competencies, processes, and technology tools that get results.
Participants in our programs benefit from the experience of our coaches who understand how employers use social platforms and automation to find talent. We also support job searches with the emotional side of the process. Empathy and understanding help job candidates stay positive, active, committed, and open to new opportunities.
Outplacement Costs
Outplacement is usually priced as a fixed fee per employee, no matter how long it takes the person to find a job. IMPACT Group works with Fortune 500 organizations as well as small businesses. We easily support a layoff of hundreds or just one or two associates at a time, and we work within almost any budget.
What are Outplacement Services Benefits?
Displays social consciousness.
Outplacement signals a social consciousness, while taking cost control measures. Public announcements of layoffs often mention outplacement services. That’s because taking care of separating employees makes a meaningful statement.
Reduce the risk of litigation.
An experienced outplacement partner helps you process the criteria you will use to determine who is being let go. Similarly, the partner will also analyze the affect it has on the diversity of your staff. It’s also important to review applicable laws to ensure compliance.
Protects your brand reputation.
Ninety percent (90%) of professionals state they will not work for an organization that has a bad reputation.1 In other words, maintain a positive brand because it allows you to attract the best talent when you enter times of growth. Taking strategic steps along the way will ensure you uphold an employer of choice culture.
Creates a clear message to communicate internally and externally.
Determine the rationale behind the layoffs and the business reasons for reducing staff. In other words, it’s essential to put these two things into words so you can accurately and clearly share them. Communicate this to exiting employees, remaining employees, stakeholders, and the public, for instance.
Compassionately supports your separated employees with quickly getting back on their feet.
Many professionals are caught off guard when they lose their job and are offered outplacement services. Provide exiting employees with job search assistance through an outplacement partner because it empowers them to find a new position fast. When a former employee cuts their job search in half compared to the national average, your organization drastically reduces your unemployment compensation costs.
Minimizes survivor anxiety and accelerates forward mobility.
Remaining employees often combat survivor syndrome on top of mounting workloads. Ultimately, this leads to a lot of frustration. To get everyone working toward a common goal, you need a plan that addresses workload changes, manager changes, and team rebuilding. As a result, transparency throughout the process will ensure they buy into the future state.
How Do You Prepare for Layoff Conversations?
Who will deliver the news, how the news will be shared, and what should and shouldn’t be discussed are key factors to consider during employee layoffs. Our free guide provides 17 expert tips on delivering the news to your key audiences, including separated employees, remaining employees, clients, and the general public. Get your copy now!
1 IMPACT Group Relocation & Job Seeker Survey
2 National Employee Retention Report, Work Institute