What are outplacement services, and why do they matter? Even seasoned HR leaders may ask these questions – particularly in today’s competitive and ever-changing job market. In truth, understanding and utilizing outplacement services can be transformative, helping you manage layoffs of any size and supporting former employees as they transition to the next stage of their careers. But that’s not all. Outplacement services delivered by the right provider can enhance your brand reputation, improve retention among current employees, and support many other strategic goals.
In this post, explore the value of outplacement services and the key factors to consider when selecting an outplacement firm for your organization.
What are Outplacement Services?
Outplacement services support employees affected by involuntary separations and help them move on successfully. Also known as career transition coaching, outplacement services aid separated employees in launching a new career, starting a board position, securing gig or volunteer work, or even starting a business. Employers typically cover the cost of these services, so they are complimentary for employees as a part of a comprehensive severance package.
So, what are outplacement services, exactly? A suite of support tools and coaching designed to help HR teams, employees, and the entire organization navigate the next steps after a corporate layoff.
Outplacement services are:
A Helping Hand to Departing Employees
Outplacement is not akin to a personal shopper who does all the work. Outplacement coaches don’t procure jobs, place people in jobs, or apply for jobs on behalf of the job seeker. Instead, they are experts in hiring processes and trends who partner with departing employees to overcome job search challenges. They may work on building interviewing skills, networking habits, or even managing the emotional toll of job loss.
Exceptional outplacement services place a strong emphasis on personal branding and being “seen” in today’s competitive job market. Career coaches with expertise in job searches help individuals develop a robust personal branding strategy to effectively market themselves online. Activities include:
- Gaining clarity about what they want to do next in their work life
- Aligning their job search techniques with the technology and processes employed by today’s hiring managers
- Revising their resume and accessing job boards
One-on-one outplacement coaching is customized to meet the unique needs and career goals of each employee. It includes a variety of resources such as online tools, career assessments, mock interview practice, salary research, social media support, and much more. Given this level of support, it’s no wonder our research found that job seekers who utilize professional outplacement services secure employment over 2.5 times faster than those who do not, according to Harvard Business Review.
A Source of Support for the HR Team
Laying staff off is a heavy decision to make that often impacts multiple areas of your organization. Fortunately, outplacement services aren’t just for exiting employees. They are also available to support your HR team and others involved in managing layoffs. Outplacement firms walk alongside you as you progress through each phase of the staff reduction. They can provide the following services to support your organization and HR team:
- Assisting with making layoff decisions.
- Helping managers communicate layoff decisions to employees.
- Supporting remaining staff members so they stay productive amid change.
These services come in a variety of formats and may include consulting, strategic planning, career coaching, job search programs, group workshops, and team training.
A Positive Return on Investment
Outplacement programs vary in price range, and they are usually priced as a fixed fee per employee, no matter how long it takes the person to find a job. Whatever your budget, an investment in outplacement services is an investment in your organization and its reputation. When departing employees experience a smooth transition, they are more likely to become satisfied alums who speak positively about your brand. And with a strong brand reputation, you not only improve your ability to attract talent; you also make strides in keeping existing employees engaged and proud to be a part of your culture.
A Versatile Tool in Any Economy
Is outplacement necessary when the job market is hot? Yes. Even in a good economy, companies that are growing and profitable sometimes have layoffs. The strategic use of outplacement supports an effectively managed layoff, which helps maintain a strong employer brand.
Whether it’s a tough economy or jobs are plentiful, departing employees need help finding a desirable job and making a smooth transition. Outplacement services don’t just address the chore of finding a new position; they also addresses the human side of job loss and the emotional needs of the employee.
What are the Benefits of Outplacement Services?
Outplacement services are adaptable enough to support departing employees at all job levels and generations, regardless of economic conditions. No matter an employee’s tenure, salary level, or job title, outplacement services deliver professional help for getting on their feet faster—in a position that pays well and is a good fit.
Here are several ways outplacement services can make a difference for your employees and organization:
1. Guides individuals in using tech-enabled and traditional job search strategies
Though younger employees are often very tech-savvy, it doesn’t mean they can always figure out their job search on their own. Individuals of all ages and experience levels benefit from outplacement services and career transition coaching, including young digital natives.
After all, technology is one small piece of a job search. Just because you can use an app to view content and apply for jobs online doesn’t mean you will succeed in cracking the code to be considered for many jobs that aren’t posted. Other factors, such as networking and personal branding, play a critical role in finding and securing a new job opportunity.
Outplacement coaches understand the technology, how to leverage it, and how employees can combine technology and traditional job search successfully.
2. Displays social consciousness
Offering outplacement services signals a socially conscious employer that doesn’t turn its back on employees after a layoff. There’s a key reason public announcements of layoffs often mention outplacement services. It’s because taking care of separating employees makes a meaningful statement to current employees, customers, and other important stakeholders.
3. Reduces the risk of litigation
An experienced outplacement partner helps you process the criteria you will use to determine which employees will be laid off. Likewise, your partner can assess the impact of the layoff on staff diversity and determine if it disproportionately affects certain employee groups. As a result, you have the information to support fair decision-making that could help you avoid unlawful termination claims.
4. Protects your brand reputation
In IMPACT Group’s Relocation & Job Seeker Survey, 90% of professionals said they wouldn’t work for an organization with a bad reputation. This finding underscores the need to maintain a positive brand and ensure you attract and retain the best talent. Outplacement services support these goals by highlighting the positive ways your organization manages a reduction in force.
Involuntary offboarding isn’t easy. However, providing tools and resources to help separated employees says a lot about you as an employer and your desire to provide a fair and compassionate offboarding experience. Your remaining staff will take comfort in knowing their colleagues and friends will get back on their feet, and critical stakeholders and clients will see that you truly care about doing the right thing.
5. Compassionately helps separated employees get back on their feet quickly
Losing a job is one of the top five most traumatic experiences a person can go through in life. For many, work is much more than something they do from 9-5. Sure, it’s their financial livelihood, but it’s also their identity and their passion. While they may not define their job as a secure base – something that provides a sense of protection, gives a sense of comfort, and offers a source of energy – it is. This is what makes job loss emotionally taxing for individuals, and it’s why a compassionate outplacement program is so important.
A caring, compassionate coach is key in helping employees find security as they progress through a job search. Coaches do much more than prepare the individual for their job search. They help the individual process the painful news, assess their career aspirations, and find the confidence they need to move into the future with hope. IMPACT Group’s career coaches understand compassion is essential to meet each person at their deepest point of loss. Their decades of experience have prepared them for every reaction, and they know a flexible approach is vital for individuals to succeed.
6. Enhances productivity and retention among remaining employees
According to a LinkedIn study, 93% of organizations are worried about retention. Unfortunately, layoffs can make employee retention even more challenging. One study found that when employees were laid off or terminated, there was a 7.7% higher probability their direct coworkers would quit soon after.
Engaging outplacement services during a layoff can help you retain your remaining staff. It sends a positive signal that your organization cares about employees’ careers, even if it means they must move on to a new employer. Additionally, when employees know their coworkers are receiving job search assistance after the layoff, they can be assured of the same treatment in a similar situation, which may improve their intent to stay.
7. Minimizes survivor anxiety and accelerates forward mobility
Remaining employees often combat survivor syndrome, not just because they have lost one or more members of their team, but also because they are often asked to take on a bigger workload following a layoff. Ultimately, this can result in frustration for employees and managers. Your outplacement services provider can help you overcome these challenges by supporting the layoff planning process and ensuring transparent employee communications before, during, and after the layoff.
6 Considerations for Selecting an Outplacement Services Provider
Some outplacement firms provide “thin” programs, including a web portal and a few online resources, but little else. Others go deeper and provide professional coaching but offer minimal technology support. As you assess your outplacement needs, it’s critical to ask the right questions and decide on the criteria that will shape your selection process.
Here are some key points to keep in mind before you choose an outplacement counseling provider:
1. Today’s outplaced job seekers need more emotional support
Anxiety disorders represent the most common mental health concern in the US, affecting nearly one in five people. Though there are many causes for anxiety, job loss can be particularly anxiety-inducing. Many professionals are caught off guard when they lose their job, and they can be anxious about their financial situation, the future of their career, and even how to share the news with a spouse or partner.
Building a human connection with a skilled outplacement counselor gives departing employees the emotional support they need to displace their anxiety with optimism. Outplacement counseling also provides something a job search portal can’t: someone to listen, empathize, and present new ways of thinking about the way forward.
Additionally, many job seekers won’t engage with outplacement services without the urging of an outplacement counselor. Thus, it’s critical to choose a firm based on the quality of its coaching, not just its technology.
2. Tech-savvy outplacement counselors are essential to personal branding
Today, job seekers must be able to brand themselves and get found online. LinkedIn profiles require copious and precise keywords that align with the role job seekers are after. Moreover, many jobs are awarded to “passive job seekers” who aren’t actively looking for a change but attract recruiters based on the strength of their LinkedIn profile. To help departing employees enhance their online brand and attract recruiters, the outplacement counselors you use must be adept at utilizing modern, technology-driven talent acquisition processes.
3. “Just any” job is easy to find; “Great fit” jobs are not
Baby boomers are retiring, and employers are experiencing a talent shortage. At the same time, layoffs persist across several industries. The bottom line: outplacement counseling couldn’t be more important right now. Finding any job might be easy, but achieving a successful transition—securing a role that offers financial stability and career satisfaction— requires counseling and expert preparation.
4. Outplacement is scalable to the size of any layoff
Some may think outplacement services are suitable only for large-scale layoffs, but this isn’t so. If you select an outplacement firm with experience supporting a single departing employee or hundreds, then you can deliver tailored support for any situation. This flexibility allows you to provide valuable assistance to all employees who need it, thus significantly enhancing their offboarding and job transition experience.
5. Outplacement boosts engagement for those who remain
After an employee separation, it’s possible your remaining talent may disengage due to anger, fear, and anxiety. However, when they see that their former colleagues have transitioned successfully, they become more confident that they, too, could survive a layoff. Choosing an outplacement provider that comprehends the full effects of a layoff doesn’t just benefit departing employees. It also provides reassurance to remaining staff, helping you maintain a strong and engaged workforce.
What are Outplacement Services? A Lifeline for Employees and Your Organization After a Layoff
Layoffs are tumultuous events that require well-planned severance packages, transparent communication, and outplacement services to help affected employees manage their transition. Outplacement coaching ensures your employees won’t have to fend for themselves during a difficult time in their career. Furthermore, when you understand the benefits of outplacement services and make services broadly available to everyone who needs them, your company’s brand and remaining employees also benefit.
At IMPACT Group, outplacement coaching is a core competency. We support people through career transition during good and bad economies, offering job search services to participants and support to busy HR teams. We can meet your outplacement needs locally and globally, scaling our programs to fit your budget—whether you’re offboarding one employee or a thousand. If you’re ready to conduct a flawless and compassionate layoff, let’s connect.
Want to learn more? Explore our outplacement services with these additional resources: