What is Outplacement?

Outplacement refers to a service designed to assist employees who have left a company, often due to redundancies, in finding new job opportunities or transitioning to their next career stage.

Why is Outplacement Important?

The departure of long-term and loyal employees can be challenging for both employees and employers.
For employees, it often involves difficult emotions: a sense of loss, uncertainty, job searching, and concerns about the future. Employers, on the other hand, face decisions that can impact the company’s reputation and the morale of remaining employees, whose confidence may waver in the face of such changes.

Outplacement enables employers to demonstrate responsibility and care by offering support and practical guidance to help employees transition smoothly to the next phase of their careers.

Benefits of Outplacement:

• Emotional Support and Professional Guidance

  Outplacement packages may include a deeper understanding of personal strengths and attributes, career counseling, training, psychological support, and individual mentoring or coaching. These resources help employees reduce stress and build confidence during their job search.

• Maintaining Company Reputation

  A company that shows care for employees even at the point of departure builds a positive image as a responsible and considerate employer. A strong reputation is crucial for attracting future talent and motivating current employees.

• Reducing Tensions and Building Better Relationships

  Outplacement helps to mitigate negative feelings and potential conflicts. Employees who feel they were treated well upon leaving are more likely to leave with a positive impression of the company. Maintaining good relationships can be beneficial in the future, and third-party involvement often makes it easier to diffuse tensions.

Challenges of Outplacement

• Cost

  The main drawback of outplacement is its cost. For startups or smaller businesses, offering this service may not be financially feasible. Additionally, there is a risk that displaced employees might compete for the same positions.

• Individualization

  Another potential challenge lies in the level of customization. If outplacement services are not tailored to individual needs, some employees may struggle to stand out in the job market or secure their desired roles.

When Should Outplacement Be Part of the Exit Package?

• Large-Scale Restructuring and Redundancies

  When a company undergoes major restructuring or makes substantial layoffs, outplacement becomes an essential support measure to help employees navigate changes and job loss.

• Long-Term Employees

  Employees who have worked for the company for a long time may feel particularly uncertain about finding a new job. They may have never had to apply for a position or create a CV. Outplacement provides them with the necessary tools and knowledge to assess their skills and find new opportunities.

• Protecting Company Reputation and Workplace Culture

  A company that values its reputation and core values, even in challenging times, demonstrates care for its employees by offering an outplacement program. This approach also helps to maintain workplace culture and the morale of remaining employees.

• Specialized Employees

  If there are specialists among those being laid off who need updated or additional training to continue their careers, outplacement support can help them find new and relevant opportunities.

How Does Outplacement Work?

Outplacement services are often provided individually or in groups, either in person, online, or over the phone. While some companies may choose to manage outplacement internally, most opt to collaborate with third-party providers who specialize in this field. The choice depends on the company’s size and resources, with smaller organizations often finding outsourcing to be the most practical solution.

After layoffs, the company provides the outplacement provider with a list of affected employees. These employees can then contact the provider directly. Typically, the employee will meet with a career counselor who explains how the service can assist them. Most providers offer immediate access to services, although some may have waiting periods.

It is important to understand that outplacement services do not directly place employees in new roles or guarantee job offers. Instead, they equip employees with the skills and knowledge necessary to overcome challenges in the job search process. They support employees through the various stages of finding new opportunities, making the transition less stressful.

How Can Outplacement Add Value to an Organization?

Outplacement is not merely a cost but an investment in the company’s long-term reputation and the well-being of its workforce. Every former employee becomes a representative of the organization. In smaller communities, word-of-mouth and shared experiences are the most effective tools for shaping a company’s reputation.

A positive exit experience can create loyal advocates for your company. These individuals can be more credible ambassadors than influencers because their stories are genuine. Increasingly, companies that value their workplace culture and want to remain desirable employers offer outplacement support to departing employees.

In some European countries, outplacement is mandatory for employers when employees meet specific criteria, such as age or length of service. This helps prevent social exclusion and long-term unemployment.

Employees who participate in outplacement programs are better equipped to adapt to changes and often secure new roles more quickly, aligned with their expectations and skills. Even if a full program cannot be offered, one or two sessions are better than nothing.

Let Us Help You Support Your Employees
We provide professional outplacement services to help your employees transition smoothly to their next career step while enhancing your company’s reputation and workplace culture.

Contact us to find the best solution for your company and employees!