Companies typically use outplacement services when they expect to make layoffs, have plans to realign or following a merger or acquisition. Outplacement solutions provide support for exiting employees to help them find their next positions through coaching, resume workshops and skills sessions. Outplacement services can help to take the pressure off employees and make their career transition easier.
Outplacement was popular back in the 1980s, but the solution has evolved since then. There are still many myths associated with outplacement services though, so we decided to do some myth-busting.
Outplacement services were predominantly aimed at executive roles back in the ‘80s and this was because people in those positions typically stayed with organizations for long periods of time. However, the average tenure for today’s employees is now just over four years regardless of seniority, according to the U.S Bureau of Labor Statistics. And today’s employees often hold several roles within a company; previously, a job for life wasn’t just a phrase, it was a way of life. Modern outplacement solutions cater to everyone, regardless of seniority.
Outplacement was an office-based service in its early days. But that’s because the Internet was in its infancy and computers were expensive. However, thanks to the digital age we live in, people can receive virtual support from the comfort of their own homes. Coaching sessions are conducted using video conferencing facilities and resume development sessions can be done using collaborative word processing tools.
You might assume financial assistance is preferred by individuals who have been laid off, but outplacement services have a lot more benefits than a cash sum. Not only does it help people to land jobs quicker, but it also provides emotional support, something which is much needed following a layoff. In addition, the coaching and mentoring sessions can be customized for individuals to gain maximum benefit.
Many people think the only reason companies make layoffs is because they’re trying to cut costs, and using outplacement services defeats the objective of saving money. But layoffs aren’t always driven by cost-cutting. There are plenty of other reasons why companies reduce the size of their workforces. When businesses make acquisitions or conduct mergers, there is often a requirement for layoffs to avoid duplication of skills. Layoffs are also made during periods of transformation too. And the benefits of outplacement services go far beyond calculating an ROI figure:
When layoffs are made, employees who remain are impacted. Seeing their friends and colleagues leaving the business is unsettling and can have an impact on morale and productivity. Employees who haven’t been laid off will likely face changes to their roles as they pick up tasks that were carried out by former colleagues. They may also feel uncertain about their own positions, which can affect engagement as well as productivity. Not only does outplacement show those who are exiting that you care, it demonstrates the same for those who remain. Some 48% of companies that offer outplacement programs have mostly “highly engaged” employees, according to research by Aberdeen.
There are still many misconceptions associated with outplacement services but one thing that’s certainly not a myth is the value it brings to employees and employers alike.