Guide to Outplacement Services and Benefits
Mary Cavanaugh April 04, 2023 Outplacement, Culture, HR Strategy, Talent Management
Freedom of employment is accompanied by uncertainty. All states in the U.S. (except Montana) uphold an at-will employment policy — meaning, both the employer and employee can freely terminate an employment contract at any time. Uncertainty of employment can influence an organization as well as individuals.
What are outplacement services?
Outplacement services are a combination of methods and programs created to maintain professional relationships while mitigating the risks associated with employee transitions. Organizations use outplacement solutions to protect long-term reputations and retain top talent.
What services do outplacement firms offer?
Outplacement firms use tools such as career consulting and organizational development to help create sustainable business cultures. Services often focus on the external and internal aspects of career development; in other words, departing employees and the current talent pool. Supportive services provided to exiting employees include:
- Career consulting: This could include an assessment, resume review and production, and interview training for departing employees. Depending on the situation, career consulting can be offered solo, in groups, or in teams.
- Research: Employees can leverage information concerning target companies, career search guides, and job market data to find new opportunities. Providing critical knowledge during offboarding expedites and eases the transitional process.
- Networking: Outgoing employees often need help connecting with a new firm, company, organization, or the individuals who can help them on their journey. Increasing visibility for these employees also decreases unemployment claims.
Outplacement firms may also offer internally-focused services such as:
- Job coaching: This can include mentoring individuals to reach the next stage of their career, as well as analyzing the internal structure of an organization to find new opportunities within the company for current employees, otherwise known as internal mobility. Coach groups, teams, and leaders to improve performance and increase collaboration.
- Organizational development: Finding new places for leadership within the organization, assessing company culture, and improving the onboarding process can help an organization grow. Because every company is unique, outplacement firms take a holistic approach to providing outplacement solutions.
- Candidate screening: Protecting and fostering your current culture and talent retention starts with leadership. Ensuring the correct leadership candidates get hired will safeguard the company’s health and team morale.
What do outplacement services not include?
Solutions provided by outplacement firms primarily facilitate effective hiring, offboarding, and leadership management. Outplacement firms don’t recruit candidates firsthand or apply for jobs directly. They are chiefly mitigators during employee transitions and work towards empowering businesses and individuals to improve company culture and long-term success.
What are the steps in outplacement?
In most cases, outplacement is customized to meet the current needs of an organization or employee. A typical outplacement process begins with an in-depth organizational analysis by an outplacement firm and mentoring for leadership and management teams. Afterward, outgoing employees receive consulting and offboarding assistance. It is possible to divide consulting into multiple sessions involving resume reviews, assessments, and job search webinars. Lastly, networking sessions might be suggested for certain candidates, and program satisfaction surveys can be used to gather valuable feedback to improve the process.
Common obstacles in outplacement procedures
Even when conducted by a reputable firm, the outplacement process can have occasional drawbacks. People may feel pooled together during layoffs due to fierce competition in the job market. Moreover, high-level management and leadership could require special offboarding assistance. As a result, it is crucial to find an outplacement firm with experience working with multiple industries.
Why invest in outplacement services?
Investing in outplacement services can help lower unemployment, boost employee morale, and save money during company transitions. Financially speaking, outplacement firms act as an insurance and accounting service, looking to maximize cost-effectiveness during all aspects of employee migration. Because of this, employers and employees both benefit from investments in outplacement programs.
Outplacement by the numbers
Unemployment claims and false litigations can result in clerical costs and increased taxes. Every year, unemployment claims cost businesses upwards of $10,000 in taxes alone. When it’s time to hire, costs can vary between $4,000 and $20,000, with recruiters charging 15% to 30% of a new employee’s salary, according to Indeed. The more negatively your brand is perceived by the public, the higher the cost of finding new talent. Organizations can mitigate risks and reduce these costs exponentially by investing in outplacement services.
How do employers benefit from outplacement services?
Most employees who are seeking jobs will research companies before they decide to apply. Each year, more digital platforms and forums emphasize job and company reviews. These platforms can serve as promotional posters for companies with outplacement programs. Disgruntled employees with their concerns addressed before departure are less likely to leave a poor review and deter future talent. Additionally, outplacement firms that assist in talent retention, can grow company culture, and maintain leadership quality for the employees who remain. All of this can result in a stronger brand identity and loyalty.
How do employees benefit from outplacement services?
Improved offboarding, consulting, and skill assessments all transfer to easier layoffs and job transitions. Knowing that exiting individuals are provided an outplacement service, current employees are less likely to experience decreased morale. Lastly, improved trust in a company can translate to a more positive and transparent workplace culture.
Choose an outplacement firm that fits your organizational needs
An increasingly diverse business landscape requires both tried and true, as well as evolving outplacement services. As expectations develop faster than skills, it’s advisable to address hiring and offboarding needs while nurturing talent development. A successful outplacement firm has decades of experience and focuses on future initiatives to deliver an impactful experience.
Keystone Partners has supported organizations in making changes for growth for over four decades. Our industry-topping consultant-to-participant ratio also optimizes costs and results for your best outcome. Contact our team today and discover how we can help you build a stronger brand identity!
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