What is outplacement?

What is outplacement?

Outplacement refers to the services offered by companies to assist employees in transitioning to new job opportunities after being laid off or made redundant. These services are designed to help employees find new employment, and they often include career counseling, resume writing, job search assistance, and interview coaching.

When someone asks, “What is outplacement?” the answer is straightforward: it is a comprehensive service provided by companies to support employees in securing new work during difficult career transitions.

Why do companies offer outplacement?

Offering outplacement services is a smart move for many companies, especially during layoffs, restructures, or downsizing. There are several reasons companies choose to offer these services:

• Improving employee morale: Providing outplacement support shows that a company cares about its employees’ future, even after they leave the organisation. This can help improve the overall morale of employees, both those departing and those who remain.

• Legal compliance: In some cases, offering outplacement services is necessary to comply with local or industry-specific employment laws. Companies that provide this support minimize potential legal risks related to layoffs.

• Protecting employer branding: By providing outplacement services, companies can safeguard their reputation. Employees who receive support are more likely to have a positive view of the company, which helps maintain good public relations.

• Reducing legal risks: Outplacement services can help minimize lawsuits or disputes arising from employee terminations. This is especially important during restructuring, where employees might feel uncertain or angry about job losses.

Key components of an outplacement program

Outplacement programs typically include a variety of services aimed at helping employees transition to their next role. These services can vary but often include:

Career coaching

Outplacement services provide career coaching to employees, offering them personalized guidance throughout the job search process. Consultants work with employees to assess their strengths, skills, and career goals, helping them develop a plan for securing new employment.

Resume and cover letter writing assistance

One of the main components of outplacement services is helping employees improve their resume and cover letters. Career coaches assist employees in crafting professional documents that effectively highlight their skills and experiences to stand out in the competitive job market.

Job search support

Outplacement services typically offer job search assistance, including access to job boards, exclusive job listings, and networking opportunities. This can include helping employees make use of social media, especially LinkedIn, to connect with potential employers or hiring managers.

Interview coaching

A key aspect of outplacement services is interview preparation. Employees are coached on how to present themselves in interviews, providing them with strategies to handle common questions and build confidence in their responses.

Networking opportunities

Networking is a vital part of any job search. Outplacement services often include networking opportunities through virtual or in-person events, allowing employees to connect with industry professionals, potential employers, or recruitment agencies.

Emotional support

Losing a job can be a stressful and emotional experience. Outplacement programs often offer psychological support, helping employees cope with the emotional challenges of job loss. This support can include stress management workshops, one-on-one counselling, or group sessions to provide social support.

Benefits of outplacement for employees

Outplacement services offer numerous benefits for employees going through job transitions. Some of the key advantages include:

Access to expert guidance

Employees benefit from the expertise of career coaches, who provide professional advice on navigating the job market. With the guidance of HR professionals or outplacement consultants, employees are equipped with the knowledge needed to secure their next role.

Faster job placement

Research shows that employees who use outplacement services find new jobs faster than those who do not. This is because the support they receive helps them focus their efforts, and they gain access to exclusive job listings and networking opportunities.

Increased confidence

Job loss can take a toll on confidence. Outplacement services help employees rebuild confidence by offering coaching and support throughout the job search process. They also provide positive feedback, which can help employees stay motivated during their job search.

Emotional support

Outplacement services not only offer career support but also provide emotional support. This includes helping employees manage stress and maintain their well-being as they navigate the job transition process.

Benefits of outplacement for employers

While outplacement services primarily benefit employees, companies also see several advantages from offering them:

Maintaining a positive employer brand

Offering outplacement services helps protect a company’s reputation. Employees who feel supported during their job search are more likely to speak positively about the company, which helps maintain good employer branding and employee engagement.

Reducing legal risk

Providing outplacement services can help reduce the likelihood of legal challenges following layoffs. This is especially important when employees feel unfairly treated. By offering these services, companies show a level of responsibility that can reduce disputes and legal costs.

Boosting employee morale

Even though employees are leaving the company, offering outplacement services shows them that their contributions are valued. This can help improve morale, especially among employees who remain with the company after layoffs. It demonstrates that the organization cares about the future of its employees, even after their departure.

Cost-effective layoffs

Outplacement services may come at an upfront cost, but they can be more cost-effective than alternative solutions. They reduce the potential for reputational damage, lawsuits, and morale issues. Additionally, employees who transition smoothly to new roles reduce strain on company resources.

Outplacement vs. career transition services

Outplacement and career transition services are often used interchangeably, but there are subtle differences in their focus. While both services help employees during job transitions, outplacement services are typically more focused on job search assistance and career coaching, while career transition services may also include broader support, such as upskilling courses, retirement planning, or redeployment programs. Regardless of the name, both services aim to help employees successfully transition to their next role.

When should a company offer outplacement services?

Outplacement services are most commonly offered during times of organizational change, such as:

• Layoffs and redundancies: When a company needs to downsize, offering outplacement services helps employees transition smoothly.

• Restructuring: If a company undergoes a restructure, offering career support can show that the company values its employees, even during difficult times.

• Mergers and acquisitions: During mergers or acquisitions, outplacement services are often offered to those whose roles are being eliminated.

Outplacement services are an investment in your employees' future and can be offered to both senior-level staff and general employees, depending on the scope of the layoff or restructuring.

Final thoughts

Outplacement is an invaluable service for both companies and employees. For companies, it helps manage the difficult process of layoffs, maintain a positive employer brand, and reduce legal risks. For employees, outplacement services provide expert guidance, emotional support, and the tools they need to secure new employment quickly.

If your company is going through a period of change, offering outplacement services is not only the right thing to do but also a smart investment in maintaining a healthy workforce and corporate reputation. Click here to enlist Airswift's outplacement services to help manage employee career transitions