Outplacement 101
by Rick Galbreath, SPHR
rick@performtogrow.com
(309) 664-7741
How much do you really know about outplacement?
Outplacement: n. The process of facilitating a terminated employee’s search for a new job by provision of professional services paid for by the former employer.
But really, what is outplacement?
Outplacement is a consulting service designed to assist companies through difficult situations from performance-based terminations of individual employees to mass layoffs, reduction in force (RIFs) and other downsizings. Frequently, an outplacement consultant will first assist the company in planning and executing a termination, and will then provide guidance and resources for the employee in career transition as he or she seeks new employment.
Why should I provide outplacement?
· To get the separated employee back to work as quickly as possible.
The sooner someone going through outplacement starts their new job, the quicker your company starts reducing its unemployment costs. The savings to a company will often more than pay for the career transition service provided by the outplacement provider.
Additionally, of course, there are any number of other potential savings. The quicker someone in outplacement finds a job, for example, the sooner they drop off your COBRA or state healthcare continuation program. Since those who elect COBRA frequently use health benefits at a higher rate than those who do not do so, as soon as they transition to a new plan, your plan and your remaining employees begin to get a break from higher expenses and costs.
· To help maintain and improve the morale of remaining employees.
“Survivor syndrome” can be a very negative force inside an organization. Too many companies come through massive downsizings with their surviving employees feeling guilty, demoralized or simply waiting for the other shoe to drop. Seeing your commitment and the help you’ve provided those that have been provided with outplacement assistance, will help calm many of these concerns and get remaining employees focused back on the job at hand.
· To minimize the chance of litigation.
Outplacement focuses the employee on the future and away from the past. It channels the terminated employee’s energy toward the positive actions it takes to find their next position. Think about it this way: an ex-employee who is excited about the future is less likely to sue his or her former employer.
· To preserve the company’s reputation as a good corporate citizen.
Large layoffs can have an immense impact on the community and your customer base. Outplacement services can alleviate that impact by shortening the time your ex-employees are unemployed. Remember, the person that is undergoing outplacement is related to others in the community and also knows many of your clients. Positive comments from employees who have been well taken care of reduce risks of loss of reputation and business.
· To reduce the anxiety of managers involved in layoffs.
Many managers consider their employees to be like family. The assistance of outplacement consultants in planning and executing a layoff can make the process significantly less painful for the manager who has to terminate an employee. Managers feel better when their friends and colleagues are quickly and well placed in new positions.
· To do the right thing.
Most companies are run by compassionate human beings who want to do all they can to help their ex-employees. Most of us, at one point or other in our career, get terminated and far too many have had to find their way to their next job without outplacement. Those who have been out of a job and had outplacement assistance appreciated it. Those who haven’t want to ensure that the people who have worked for them don’t have to put up with the same confusion, extra work, stress that they did. Helping others is the right thing to do.
Is outplacement expensive?
No, outplacement is not expensive. In fact, outplacement’s ROI is typically both extremely quick and positive. As noted above, the savings in unemployment alone often more than pay the cost of outplacement. Less law suits, more productive remaining employees, happier customers and community members are all just pluses in the ROI equation.
It is said that adversity doesn’t build character, it just reveals it. Using a high quality outplacement service provider to help your ex-employee make a smoother and quicker career transitions helps him, reduces your costs and says a lot of positive things about your organization.
Rick Galbreath, SPHR, is president and founder of Performance Growth Partners Inc., a full service organizational improvement firm specializing in HR audits, corporate outplacement services, customer service assessments, customer service training, supervisory training, employee surveys, employee handbooks, teambuilding programs and team training, on-call and project-based HR consulting services, outsourced HR services, employee retention programs, performance improvement programs, executive coaching, manufacturing process and operations improvement consulting, training and programs, safety assessments, safety training, strategic planning, employee retention program, performance improvement programs, interim executive placement, conference speaking, keynote addresses, business turnaround consulting and a wide range of other services. Contact Rick toll-free at (877) 739-4747 or e-mail him at rick@performtogrow.com.
© 2008 Performance Growth Partners Inc.
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