Outplacement

Outplacement is a term used to describe efforts made by a downsizing company to help former employees through the transition to new jobs and help them re-orientate to the job market ^[1]. A consultancy firm usually provides the outplacement services which are paid for by the former employer and are achieved through practical advice and psychological support.

Outplacement is either delivered through individual one-on-one sessions or in a group format. Topics include career guidance, career evaluation, resume writing and interview preparation, developing networks, job search skills and targeting the job market. Individuals may be offered other services such as the use of an office and online tools.

History

The term "outplacement" was coined more than thirty years ago by the founder of a New York based career consultancy. With the increased rates of downsizing, rightsizing, redundancies and lay offs, particularly during the 1980s and 1990s ^[2], businesses increasingly found a need for some form of assistance in reducing the trauma of redundancy for both departing employees and those who remain. Indeed, research shows that losing one's job is one of the most stressful experiences a person can face, ranked third behind death and divorce ^[3].

"Outplacement" firms can also provide counseling support for individuals who have not been offered those services through their employer, but choose, on their own, to pay an outplacement or "career management" service to provide the same assistance. Since the client of an outplacement firm, is the individual or firm that pays the fee, the individual who elects to contract with an outplacement firm on their own, may often receive more one-on-one time, and more individualized attention, than is usually offered when the company hires the outplacement provider.

Criticism

A page-one feature in the August 20, 2009, Wall Street Journal, headlined "Outplacement Firms Struggle to Do Job," reported that U.S. corporations are increasingly dissatisfied with the quality of outplacement services they receive. Reports the Journal:

As demand rises in the $4 billion-a-year outplacement business, providers increasingly offer standardized services, which some workers say offer little value. Businesses anxious to shed former employees quickly and cheaply impose time limits that hamper effectiveness. Few employers track whether outplacement works.

Outplacement companies

The largest global outplacement companies are Right Management (Manpower Inc) and Lee Hecht Harrison (Adecco SA), These companies are offering career coaching for redudnant leaders and key personell. The fastest growing part of the industry are however online career programs, provided by companies such as RiseSmart Inc and Microenta.com that offers their solution to both small and large outplacement processes.

References

1. ^ Doherty, N. (1998). The role of outplacement in redundancy management. Personnel Review, 27(4), 343.
2. ^ Littler, C. R. (2003). Understanding the HR Strategies of the 1990s, University of Queensland Business School Seminar Series.
3. ^ Lewison, J. (2002). From Fired to Hired. Journal of Accountancy, 193(6), 43.