What are Outplacement Services? Definition, Types, and Benefits

Layoffs can be hard on employee, it is not just lost income, it is like losing an identity and community of colleagues. It is hard not just on employees but employers as well. Because layoffs essentially mean letting go of workers, which can be hard on the managers too.

However, there is a way to make the experience positive for everyone involved. Outplacement is an opportunity that not just benefits the workers but helps the company reputation as well. Let us look at how outplacement services work.

What are Outplacement Services?

Outplacement services are employee benefits provided by a company to employees who have been laid off. It involves helping employees to find new work, transition back into another organization smoothly, and get back on their feet. It is often also known as career transition services. In many cases, it also includes numerous services like interview training, job search advice and more.

While it sounds like outplacement services are in favor of the employee, the way they have been working has shifted in recent years to meet companies’ changing needs. Nowadays, companies are proactively offering outplacement, not just to a few, but to all affected employees of all grades and levels with an aim to better protect brand reputation as well as support the employees who have been undeserving of this transition.

How does Outplacement Services Work?

Outplacement services are provided in a one-on-one or group setting or by digital means like online or via phone. On most occasions, companies partner with a third-party service provider to take care of the outplacement for their employees. If you are a smaller company with limited resources outsourcing these services to a third party is the viable option.

So, here is how an outplacement services provider will go about the process-

Once you lay off employees you send a list of them to the third-party provider, followed by which your employees can contact them for the services.

Initially a career coach is provided to these employees who will explain how they can help them. Some outplacement providers invoke a waiting period before the former employees can take advantage of the services. But if the need is imminent the services are rolled out immediately.

Employees will be assigned a client success manager, who will work closely with them and their leadership teams to effectively roll out services to the laid off employees.  The outplacement provider will assign career coaches to each individual job seeker for personalized job search plan development and guidance.

Understand that outplacement services do not involve sourcing of jobs or placement of former employees in them. They support employees with the knowledge, training and skills required to overcome challenges they face while finding a new job. They also support you in various parts of the job search process, making the job hunt slightly less stressful.

What are the Types of Outplacement Services?

There are wide range of resources available under the outplacement services. Some of the features or types of outplacement services that benefits the employees are-

• One-on-one career coaching.
• Cover letter and resume-building tools.
• Resume review, editing and writing.
• Job interview practice and coaching.
• Career interests and skills assessments.
• Social media profile writing and optimization.
• Guides on job search-related topics, such as networking and personal branding.
• Access to information about target companies to support research.

There are several types of outplacement programs that offer diverse kinds of services. Before choosing your outplacement services provider ensure that their program includes what you require and that they are a reputed company.

For example, an outplacement program that offers one-on-one coaching with an experienced career development specialist and hands-on resume reviews is much more beneficial for the job seeker than a program that offers only group coaching with a one- size fits all approach.

Benefits of Outplacement Services

Outplacement involves spending resources like time and money on laid off employees. It is obvious to wonder if you should commit to it or not. So, how do employers’ benefit from providing outplacement services?

Take a look at the benefits of providing outplacement services.

1. Improves reputation

Investing in outplacement shows that you genuinely care about your employees and their career growth. It is an act of empathy and support that is much appreciated by employees, and it shows off your company in good light, making it easier to attract and recruit talented candidates down the line.

2. Reduces risk

It is common for employees to feel frustrated or angry at the news of being laid off and resort to violent behaviour. But if they are given the hope and guarantee of landing a job, they are less likely to resort to any harmful behaviour or a wrongful termination.

3. Increased employee morale

Layoffs not only make employee uncomfortable but can also affect their mental state. However, with outplacement services being offered they could feel less anxious and may feel motivated to work harder and invoke an optimistic mindset about it.

4. Lesser unemployment costs

Outplacement helps former employees find new jobs faster than when they go looking on their own. By securing employment swiftly, they would not need unemployment benefits for long, lowering your unemployment insurance rates.

Drawbacks of Outplacement services

Outplacement will cost you. If you are a startup or a smaller company, you might not have the resources to spend on these services, your laid-off workers may be competing with their peers for the same jobs. In addition, you need to personalize your outplacement services, otherwise, employees may struggle to stand out in the job market and land the type of positions they desire.

How to Choose the Best Outplacement Services Provider?

Make sure to evaluate the outplacement program as per your requirements. Some of the factors to consider before choosing a third-party provider are –

• Service

Are the services offered by this outplacement program useful to your workforce? Does the program offer individualized services such as one-on-one career coaching and resume review, Can the services be tailored as per needs of different category of employees, such as hourly workers or executives?

• Terms

Considering that many people require considerable time to find a job that best suits them, what is the length of their outplacement program? Can the length of service be extended at a reasonable cost depending on the employee levels or grades i.e., senior-level and executive employees who often take longer to find jobs that interests them or suits them best?

• Experience

Does the outplacement firm you are engaging with have a good reputation across the industry? Do they provide executive outplacement as well as outplacement to entry level, mid-level and senior-level employees? Who are their past and existing clients? what industries are they in? What is the success rate for employees who have used this outplacement program? What are the qualifications of the program’s career coaches?

• Technology

Can employees access the services at their convenience through a virtual platform? If so, are the virtual services that are offered personalized, has premium benefits, such as one-on-one coaching with a professional career development expert? Does the program offer more value per dollar?

In practice, when you are choosing an outplacement firm that fits your requirements you need to consider your company’s financial resources, your workforce needs etc. The wrong outplacement firm can lead to negative return on your investment and low landing rates for your laid off employees.

To Summarize

Outplacement offers numerous benefits to both employees and employers. It is an effective way to get former employees back to work after a layoff. For employers, it helps reduce costs associated with unemployment benefits, enhancing their chances of landing, attracting and retaining the best talent in the future as well as brand management.

If you choose a qualified third-party provider, such as Alp, you will find that outplacement can go a long way in benefitting your company. If you are looking to outsource your outplacement services to a company that can help protect your reputation, mitigate risk, boost employee morale and even save some money on unemployment costs, we are perfect for you. Whether it is outplacement services, or any staffing and recruitment challenges you are facing, we are here to provide you with a solution that suits your business demands perfectly.

Frequently Asked Questions

1. What does outplacement services mean?

Outplacement services is a career program for exiting and laid off employees that helps them with one-on-one counselling, writing resumes, preparing for interviews, networking, navigating job boards and other tactics necessary to land a job.

2. Do outplacement services work?

Yes, outplacement services do work. Layoffs are a stressful scenario for both employees and employers. With an outplacement service in place, there is a roadway that helps exiting workers find new jobs and ease the transition. On the other hand, for employers, it improves their reputation and reduces the cost of unemployment claims.

3. What services does outplacement exclude?

Outplacement services are not recruiters. They are not responsible for sourcing, applying or guaranteeing jobs for you. That part is still up to the former employees, they need to do the work and use the resources they are offered.

Contact Us For Business Enquiry