Outplacement
Outplacement is a support service offered by employers to assist employees who have been laid off or downsized as they transition to new job opportunities. It is typically included in severance packages and aims to provide former employees with resources that ease their job search process. Common components of outplacement services include career counseling, resume writing assistance, interview preparation, and skills assessments. These services not only benefit the departing employee by helping them identify their strengths and navigate the job market, but they also serve employers by enhancing their reputation and reducing the likelihood of legal disputes following a layoff.
The concept of outplacement originated in the late 1940s, when Bernard Haldane developed strategies to aid returning veterans in showcasing their skills to potential employers. Over time, these principles evolved, and companies recognized that providing outplacement services could lead to a more positive experience for employees, thus enhancing company image and potentially lowering insurance costs. In recent years, the field has adapted to changes brought about by the COVID-19 pandemic and technological advancements. Employees facing layoffs are encouraged to inquire about available outplacement services, as they can facilitate a smoother transition to new employment opportunities.
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Outplacement
Outplacement is a service provided by an employer to former employees who have been downsized or laid off. It is intended to help a former employee transition into a new job or career. It is usually part of the overall severance package, or cash payments and other benefits offered to employees who have lost their job. Outplacement helps former employees move forward and also helps employers by protecting their reputation and reducing the likelihood that a former employee will sue them.
Background
The outplacement concept originated in the late 1940s after the end of World War II (1939–1945). British-born physician Bernard Haldane (1911–2002) developed a process to help returning veterans determine what skills they had and how to present them to prospective employers. Many war veterans were barely out of high school when they entered military service and lacked skills that would help them in the post-war economy.
During the 1960s and 1970s, employers began to adopt Haldane’s principles of determining strengths and filling gaps in skills to help former employees move on. This led to the concept of outplacing, or helping employees find their place outside the company. Although this seems altruistic, companies often had very practical motives for helping former employees find new jobs. They discovered that when they offered outplacement services, employees were less upset about being dismissed. It made the company look more caring and improved its image while making it less likely that the former employee would speak unfavorably about the company. Finally, outplacement made it less likely that the terminated employee would sue over being let go. This led to liability insurers offering better rates to companies offering outplacement. The concept grew in popularity, resulting in companies that specialized in career transitions and outplacement by the early twenty-first century. Throughout the 2020s, outplacement practices were forced to adjust due to the COVID-19 pandemic, advancements in technology including artificial intelligence (AI), and changes in the economy.
Overview
Outplacement includes a variety of resources that can help the former employee determine his or her strengths and weaknesses, develop a plan to address any weaknesses and training gaps, and start the search for a new job or career path. These services can be offered by the company itself or companies specializing in helping with employment transitions.
Among the services offered are skills assessments, market assessments to help identify job opportunities, and a review of training opportunities. Coaching services—offered individually or in a group—can help the new job-seeker improve his or her resume and cover letter, learn or improve interviewing skills, and determine the best way to handle negotiating salary and benefits. In some cases, outplacement benefits include other services such as making a computer or phone available for the former employee to use in the job search, training to help update skills, and financial advice to help make the best use of cash severance payments and other monetary resources.
Outplacement resources are especially important when employees are leaving a job with very specific skills or have not had to interview for a job for a long time. It can help smooth the transition, possibly even helping the employee land in a better situation than he or she was in the previous job. Employees who are laid off should inquire with their employer about what outplacement services are available if they are not mentioned at the time employment is terminated.
Bibliography
“Bernard Haldane, An Author and Innovator in Job Counseling.” New York Times, 5 Aug. 2002, www.nytimes.com/2002/08/05/us/bernard-haldane-91-an-author-and-innovator-in-job-counseling.html. Accessed 27 Nov. 2024.
Chappelow, Jim. “Outplacement.” Investopedia, 20 Sept. 2019, www.investopedia.com/terms/o/outplacement.asp. Accessed 27 Nov. 2024.
Heathfield, Susan M. “Outplacement is a Service for Laid-Off Employees.” Balance Careers, 23 Apr. 2020, www.thebalancecareers.com/outplacement-is-a-service-for-laid-off-employees-1918584. Accessed 27 Nov. 2024.
Hrala, Josh. “Outplacement: The Complete Guide.” Career Minds, 8 April 2019, blog.careerminds.com/outplacement-services. Accessed 27 Nov. 2024.
Maurer, Roy. “How to Get the Most Return from Outplacement Services.” Society for Human Resources Management, 2 Mar. 2018, www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/hr-career-transition-outplacement-services.aspx. Accessed 27 Nov. 2024.
Price, Emily. “The Benefits of Outplacement Services: An Approach to Employee Transition.” American Society of Employers, 20 Feb. 2024, www.aseonline.org/News-Events/Articles/the-benefits-of-outplacement-services-an-approach-to-employee-transition. Accessed 27 Nov. 2024.
“What Is Outplacement?” Personal Career Management, www.personalcareermanagement.com/outplacement-services/what-is-outplacement/. Accessed 27 Nov. 2024.
“What Is Outplacement? Here’s Your Answer.” Impact Group, www.impactgrouphr.com/insights/what-is-outplacement. Accessed 27 Nov. 2024.