What Are Outplacement Services? (Outplacement Guide for 2024)
Welcome! If you're here, you're likely an employer looking to understand the unique, and sometimes complex world of outplacement services.
Perhaps you're navigating a complex restructuring process or maybe you're simply planning ahead to make sure you're prepared to support your employees through potential future transitions.
As employers, we all understand that the health and wellbeing of our employees, both present and past, directly influences our organization's reputation and overall success.
When we have to make tough decisions that affect our employees (such as layoffs), we want to make sure everything in our power is being done to support them. That's where outplacement services come in!
Understanding the ins/outs of these services can sometimes feel like deciphering a foreign language, though. This is why I'm excited to welcome you to our Outplacement Service Guide, intended to be your one-stop resource for everything you need to know about outplacement.
This guide will walk you through everything from the basics of outplacement and its numerous benefits (for both employees and your organization) to how to choose the right outplacement services provider. Let’s begin!
Article Section Summary
Definition of outplacement service
Brief history of outplacement assistance
When you might need to use these services
The benefits of utilizing outplacement
Business benefits
Employee benefits
How the outplacement process works
Different types of outplacement options
How much they cost per employee
Employee cost calculator
How to prepare yourself before using these services
Steps for picking the right outplacement agency
What are the best outplacement agencies
Future trends in the industry
Outplacement Service Guide For 2024
What Are Outplacement Services?
An outplacement service is a lifeline an employer extends to its employees when they're leaving the organization due to reasons like layoffs, redundancies, or general job termination. It's like a professional support system designed to help them transition smoothly into new roles or careers.
These services typically provide a variety of aids such as career coaching, job search assistance, resume writing guidance, interview preparation, and sometimes additional training or upskilling.
But what’s the end goal here? To ensure your displaced employees secure new employment quickly and efficiently, reducing unemployment and the stress that can accompany job loss.
Investing in outplacement services shows that you value your employees, even when circumstances lead to tough decisions (which no one wants to make). This boosts morale among current employees and helps maintain a positive reputation for your organization - a win-win for everyone involved!
Brief History Of Outplacement Services
The concept of outplacement was first introduced in the 1960s by James E. Challenger, who saw an opportunity to assist employees during the waves of corporate downsizing. The idea was novel but rapidly gained traction.
Companies recognized that providing career transition services could help their departing employees find new opportunities, turning a potentially harmful experience into a positive one.
Since then, outplacement has evolved significantly. What was once a narrow field focused mainly on job search assistance and resume building has grown into an ever changing, thriving industry.
Today's outplacement services offer more of a holistic career support approach, including skill development, networking strategies, personal branding, training support, and even entrepreneurship guidance.
It's not just about softening the blow anymore; it's about empowering employees and investing in their futures, ultimately reflecting positively on the company's image and values.
Layoffs in the United States
When Would My Business Need To Use Outplacement?
Knowing when to use outplacement services can make a difference for your employees and organization. Let's break down a few scenarios when you might need to consider utilizing an agency:
Restructuring or Downsizing: If your company is undergoing a significant change like restructuring or downsizing, these services provide essential support to your departing employees. This helps them transition to new roles outside your organization easier.
Performance Based Termination: It’s helpful when you have to let employees go due to performance issues. When offering these services, you demonstrate empathy and respect, helping to maintain relationships and reputation.
Mergers and Acquisitions: M&A often result in redundancies. Outplacement helps displaced employees get back on their feet quickly, mitigating the stress and uncertainty accompanying these changes.
Proactive Planning: Even in the absence of immediate needs, proactive planning for potential future transitions ensures you're prepared to support your employees whenever changes arise. This has become increasingly prevalent as Artificial Intelligence continues to improve.
What Are The Benefits?
What Are The Organizational Benefits Of Outplacement?
As an employer, investing in outplacement services for your transitioning employees might seem unnecessary, especially during difficult times like downsizing or restructuring. But here's the thing: outplacement services offer substantial benefits for your organization that often outweigh the time, effort, and costs associated with it.
Preserve Your Reputation: How your organization handles layoffs or terminations significantly impacts your brand image. Providing outplacement services shows that your organization is committed to its employees, even when circumstances force difficult decisions. This, in turn, maintains your reputation as a responsible and caring employer.
Boost Employee Morale: Layoffs can significantly affect the morale of your remaining employees. However, knowing that their colleagues are receiving support to find new opportunities alleviates some of the anxiety and uncertainty, ultimately preserving productivity and engagement levels.
Mitigate Legal Risks: Offering outplacement support helps reduce the risk of legal actions from former employees. By showing that you're providing resources and assistance during their job transition, it’s less likely that terminated employees will feel mistreated.
Attract Talent: When recruiting, candidates often look at how an organization treats its employees. By offering outplacement services, you show potential hires that you're committed to employee well-being regardless of the situation, making your company more attractive to top talent.
What Are The Employee Benefits Of Outplacement?
As a transitioning employee, these services offer even more of a benefit since they are likely new or unfamiliar with the world of finding a new job and building a career.
Career Transition Support: Losing a job is often a stressful experience. Outplacement services offer valuable support during this time, including career coaching, job search assistance, resume writing, and interview preparation, guiding employees through the transition and helping them bounce back quicker.
Skill Development: Outplacement often includes upskilling or reskilling opportunities, enabling employees to broaden their skill sets and increase their marketability for future roles.
Networking Opportunities: Many providers have vast networks across industries. This access can help employees tap into opportunities they might not find on their own.
These services aren’t just about helping employees find a new job, they are about providing them with the tools, resources, and confidence to navigate their career transition successfully.
As employers, offering outplacement services shows we're invested in our organization's success and the welfare of our people, both current and past. And that’s something to feel good about!
How Does This Process Work?
That original look into the outplacement process can feel like you are venturing into unknown territory, but fear not! It's simpler than you might think. Here's a broad outline:
Initiating the Outplacement Service: Once you, as an employer, decide to offer outplacement support and choose a service provider, you'll introduce the affected employees to the career transitioning team. This kick-off often includes an introduction meeting, providing an overview of available services and how to access them.
Individual Assessments: Each employee will typically have an assessment session where their skills, experiences, interests, and career goals are discussed. This helps tailor the outplacement support to their unique needs and aspirations.
Career Counseling and Coaching: Employees receive personalized career counseling and coaching after the assessment. This may include identifying potential career paths, developing a personal brand, or honing interview skills. The goal is to equip them with strategies and confidence to navigate the job market successfully.
Job Search and Application Support: Outplacement services often offer hands-on help with the job search process. This can involve assistance with writing resumes and cover letters, identifying relevant job opportunities, or even supporting the application process.
Post-Employment Follow-up: Some services continue their support even after the employee has secured a new job, offering advice on how to navigate the new role and workplace.
Example Scenario
ABC Company, a mid-sized technology firm, has been a key player in the hardware market for over 20 years. But, with the rising trend of cloud-based solutions, the company decided to pivot its business model to stay relevant in the industry. The shift required ABC Company to invest in new skill sets, now making a portion of its hardware-focused workforce redundant.
Faced with the difficult decision of laying off some of its long-standing employees, ABC Companys leadership team recognized the need to handle the situation delicately, considering how much those employees' have contributed over the years.
To make sure there’s a smooth transition for the affected employees, ABC Company partnered with an outplacement service provider. The outplacement firm began by providing access to their online career training platform and offering virtual coaching call with the transitioning employees, helping them understand their strengths and aligning them with new career paths.
Next, the outplacement firm assisted with resume writing and cover letters, transforming their existing hardware-focused resumes into appealing profiles for a wide range of potential employers. They also offered interview preparation guidance, focusing on effectively portraying their amazing skill sets.
With the help of the outplacement services, ABC Company successfully managed the challenging transition. The employees felt supported during the process, appreciating the company's efforts to help them navigate their career transitions, and ABC Company maintained its reputation as a considerate and responsible employer.
What Are The Primary Types Of Outplacement?
You might be wondering about the different services available in the world of outplacement. Just as every organization is unique, so are the outplacement services designed to cater to these diverse needs. These options can typically be boiled down into one of the three following groups:
Individual Outplacement provides personalized one-on-one support, helping individuals understand their career goals, craft a stellar resume, prepare for interviews, and navigate their job search effectively.
Next, there’s Group Outplacement which typically includes workshops or access to training platforms on job hunting skills, resume writing and interview preparation, providing your employees with the tools they need to find their next role successfully.
And finally, Online (or virtual) Outplacement provides digital job search resources, virtual career coaching, and networking opportunities, accessible from anywhere and often more flexible in terms of timing. This can almost be looked at as a mix of both individual and group outplacement (more on the individual side still though).
How Much Do Outplacement Services Cost?
As with most professional services, the cost of outplacement services does vary widely. A few variables influence this, such as the level of the employee being transitioned, the depth of the program, and the duration of services.
Typically, we see prices starting from $300/employee for group services regarding entry-level positions to $10,000/employee for more comprehensive packages targeting executives.
The goal for you as an employer is to find an affordable yet effective option for your transitioning employees.
We built an outplacement cost calculator that can help show you the overall costs associated with outplacement and how you might be able to save some money with Turbo Transitions.
Preparing Your Organization For Outplacement Support
Change can be daunting, especially when it involves the tough decision of an employee's departure. Fortunately, a good outplacement firm will help you prepare for what’s to come.
First, it’s crucial to develop a strategic plan around questions you might have, timelines, and points of contact for the transition. This will create a clear roadmap for your internal team and the outplacement provider.
Next, effective communication plays a pivotal role here, so be transparent when communicating changes to the outplacement agency you have chosen. Ensuring that all management and HR personnel are on the same page will give a consistent message throughout the organization.
While those two notes are important, it’s best to contact your account representative at the outplacement agency to learn more.
Ask them what to expect and what working with them will look like moving forward (if they haven’t done that already).
5 Steps For Selecting An Outplacement Firm
Picking the best outplacement firm is like tailoring a suit - you've got to find the right fit! Before even starting to research companies, you will need to identify your needs.
Do your departing employees require one-on-one coaching, or will group sessions do the trick? Do they need more assistance with resume-building or interview skills? Will the services be for top-tier executives or a broader employee base?
These questions help you chart out your roadmap.
Step 1: Research
Once you know your needs, it's time to hit the research road. Look at potential outplacement firms to get a general sense of their reputation, overall costs, and digital capabilities (like online training platforms).
Head to their website or reach out to their customer support team to learn more about who they are as a company.
Step 2: Understand Their Process
The next step is to get up close and personal with the firm's process. You want a structured yet flexible service to accommodate your employees' needs. A one-size-fits-all approach may not be the best way forward. Find out if they provide career coaching, online resources, or a mix of both.
Are they staying current with job search trends and technological advances? An outplacement firm that keeps up with the times is a gem indeed!
Step 3: Evaluate the Coaching Quality and Training Platform
An outplacement firm is only as good as its coaches and the training platform. Ask about their background and knowledge in the space. You don't want your employees to be coached by someone who doesn't understand their career goals or the industry nuances.
The same goes for the training platform. How is the training structured? Is the content up to date? Are the modules easy to follow? Can the employees access it anywhere at any time?
Step 4: Price and Package Details
Let's talk numbers. Find an option that offers value for money without losing any quality in the offering. While outplacement services are an investment, ensuring you don’t break the bank is obviously still important.
Keep in mind, the cheapest or most expensive options aren’t always the best. You're aiming for a good balance of quality and affordability.
Step 5: Customer Service
Lastly, consider the level of customer service they provide. Your employees will be going through a transition period and might need a lot of support.
How prompt is the firm in responding to queries? Are they friendly over the phone or through email? A firm that prioritizes customer service will create a more comfortable and supportive environment for your employees.
What Are The Best Outplacement Agencies?
We've combed the options and found the best agencies to provide top-notch outplacement services in 2024. Let's take a look into our top picks.
1. Turbo Transitions: The Cream of the Crop (if we say so ourselves)
First on our list is Turbo Transitions, and while we might be slightly partial, we're confident that we provide one of the most comprehensive and cost-effective outplacement services available in today's market.
Our offering is a robust blend of more than 100 different pieces of training, templates, guides, and resources, designed with input from experienced recruiters and career coaches. It's a unique combination of cutting-edge technology and valuable human interaction that sets us apart.
Our advanced training platform stands unmatched in the industry, hosting an extensive variety of resources. Our career coaches bring a wealth of experience, having recruited for a diverse range of companies – from Fortune 500 giants to local, family-owned businesses.
What truly differentiates Turbo Transitions is our commitment to crafting solutions for each individual, coupled with our unparalleled Career Training Platform. For you as an employer, we offer a blend of competitive pricing, exceptional customer support, and speedy service to make this choice a no-brainer.
2. Randstad Risesmart: A Close Contender
Hot on our heels is Randstad RiseSmart. This firm has a global reach, making it an excellent choice for multinational corporations. Their process is backed by industry-leading technology that facilitates efficient job matching and career coaching.
RiseSmart's attention to detail, coupled with its strong focus on fostering a positive transition experience, ensures that your employees will be in capable and caring hands.
3. GetFive: Top Tier for Executive Outplacement
If you're looking for executive outplacement services, GetFive takes the cake. Their specialized approach towards executive outplacement is both robust and empathetic.
GetFive understands this level's unique challenges and opportunities, offering an array of services such as personal branding, networking strategies, and targeted job search. With GetFive, your top-tier talent will get the specialized support they need to soar to new heights.
Future Trends In Outplacement
As we look ahead, it's pretty clear that outplacement services need to evolve to stay relevant with the changing work world.
Virtual outplacement services are likely to become more mainstream as rise of remote work and digital connectivity has made online career coaching, virtual workshops, and e-learning modules increasingly popular.
Personalization of outplacement services is another trend to watch. More outplacement firms are shifting from a one-size-fits-all approach to customized programs that cater to each individual's unique needs, skills, and career aspirations.
Staying on top of these trends will help you select an outplacement service that is not just suitable for today's needs but is also forward-looking and adaptive to future changes.
Our Two Cents
Similar to the notes above, I've noticed some pretty promising future trends in outplacement that I believe will benefit everyone.
First off, there's a growing focus on personalization. These services are moving past the old "group outplacement" or "one-size-fits-all" solutions and are instead tailoring their support to individual needs and industry specifics. This creates a more targeted approach which leads to quicker and more satisfying job placements.
My second thought is that technology is playing a more significant role in this industry (as it is in every industry). Virtual coaching, AI-driven job matching, and online networking events are just a few examples of how outplacement is becoming more tech-savvy. This makes the process more efficient and also broadens the reach of services.
Finally, I'm starting to see a stronger alignment between outplacement, continuous learning, and career development. Outplacement is no longer just a safety net for those who've lost their jobs; it's becoming a pathway for lifelong career growth and fulfillment.
These trends show a more dynamic and responsive outplacement model that doesn't just react to job loss but proactively builds career resilience. It's an exciting time in this space and I'm looking forward to seeing what comes next!
Wrapping Up | Outplacement Guide
And there we have it! As we wrap up this comprehensive guide on outplacement services, it's clear that these support systems are no longer optional; they're crucial in any organization.
These services aren't merely about helping transitioning employees find their next job. It's about providing them with the tools and resources needed to confidently navigate their career path, helping them discover new opportunities and grow in the process.
And while doing this absolutely benefits the transitioning employee, it also strengthens your reputation as an empathetic and employee focused organization, boosting your employer brand in the competitive market.
Ultimately, embracing outplacement services is a testament to the value we place on our employees, their contributions, and their future. It's about being there for them in good and challenging times.
We hope this has helped clear up any confusion around outplacement and how it works today. Best of luck in your transition, and please get in touch with us if you have any questions or would like to learn more about our services!
Tags: Outplacement guide, Outplacement service, what do outplacement services offer, outplacement process, what is outplacement support
Author: Reid Alexander
Disclaimer: This content is for informational purposes only & not intended as professional legal or HR advice. Consult with qualified professionals for advice tailored to your specific situation. The author & publisher disclaim any liability for errors, omissions, or actions taken based on this content.