Terminations and layoffs are stressful situations for both employees and employers, but outplacement, a career assistance service that assists former employees in finding new jobs, can help ease the transition. Businesses that provide it may also discover that it enhances their reputation and lowers the cost of unemployment claims. We will learn more about the Downsizing Service, Outplacement Services for Individuals, and executive costs.<\/p>
Outplacement refers to any service that helps a departing employee find a new job or transition to a new career. Some employers provide access to outplacement services as an employee benefit to their employees. Outplacement services can be financially, professionally, and emotionally beneficial to all parties and, more often than not, ensure a peaceful end to a working relationship.<\/p>
No one wants to be fired or laid off from a job, let alone deliver the news to someone else, but going above and beyond a severance package by offering outplacement services can help both parties navigate an often-difficult transition.<\/p>
When a company is letting an employee go, it may offer services in-house; others may hire a third party to keep costs down or if tensions or awkwardness are particularly high. Traditionally, outplacement services were provided at an outplacement firm so that the former employee could have access to office tools (such as a phone and computer) needed to write resumes and cover letters and find new employment. Many employees now work from home and may only need to visit an outplacement firm for career counseling if at all, as counseling can be done over the phone.<\/p>
The services remain the same in either case: resume and cover letter writing, coaching, market analysis, fine-tuning interviewing skills, salary negotiation, and other services designed to give an ex-employee the best chance of finding another job as soon as possible.<\/p>
The goal of an organization is to hire the best Human Resource talent available in the market. An organization may have to part ways with its employees for unavoidable reasons. Organizations use techniques such as employee separations, downsizing, and outplacement to achieve the aforementioned goal. It is important to note that the organization incurs significant costs during both the hiring and employee separation processes.<\/p>
Employee separation is the process by which an organization or an individual terminates employment with that organization. This procedure could be voluntary or involuntary. Whereas voluntary separation occurs when an employee decides to end the relationship with the employer for personal or professional reasons, involuntary separation occurs when an employer terminates the relationship with an employee due to economic necessity or a poor fit between the employee and the organization.<\/p>
Downsizing or laying off employees can be a disastrous solution for any organization if not done sparingly and carefully. However, if done correctly, it can serve as a support for the organization and result in the previously mentioned benefits. It could be argued that how downsized or laid-off employees are treated has a direct impact on employee morale and retention of valuable and high-performing employees. As a result, downsizing or laying off employees should be avoided without a well-thought-out strategy because it can have a negative impact on an organization’s overall performance.<\/p>
Outplacement refers to efforts made by a downsizing company to assist former employees in transitioning to new jobs and re-orienting to the job market. Outplacement services are typically provided by a consulting firm and are paid for by the former employer and consist of practical advice and psychological support.<\/p>
Executive outplacement is a service provided to outbound executives to help them find new services outside their current company. Outplacement, as you are probably aware, is typically provided following a layoff or RIF event that displaces workers. However, there are numerous other reasons executives may choose to use the service.<\/p>
Because of the individual’s high-level role, executive outplacement services must be more robust and well-rounded than standard outplacement processes. A senior executive will have fewer opportunities (job prospects) than a regular employee or someone in middle management.<\/p>
An increase in demand for executive outplacement services began during the recession, but now that the economy has recovered, M&As and other business transactions are driving up demand once more.<\/p>
As you can see, executive outplacement requires more skill and time than other outplacement services to ensure that coaches can work closely with the executive to help ensure they land the right role.<\/p>
The real question you’re probably asking is whether you even need to offer executive outplacement or outplacement services in general.<\/p>
Yes.<\/p>
Simply put, it is a way for your current employees to return to work following a separation event at your company. This outplacement could be a merger, acquisition, layoff, RIF, restructure, downsizing, or other similar events.<\/p>
Each of these events can be taxing on your entire organization. By offering these services, you can ensure that your departing employees are in good hands and will leave your organization as smoothly as possible.<\/p>
Individual outplacement services offer a severance benefit to employees and individuals, allowing employers to better manage termination costs and employees to successfully transition to a new role and company. Organizations use outplacement services for individuals to assist departing employees with their job transition.<\/p>
Outplacement firms offer services to relocating employees in the form of personalized programs, assessments, and workshops focusing on resume and cover letter writing, job leads, counseling, and other individuals.<\/p>
Individuals can often access these services over the phone or through outplacement technology. Individual outplacement services can improve retention and productivity, reduce lawsuits, improve business branding, and support corporate values, to name a few individuals.<\/p>