Many companies offer outplacement services to help employees who have been laid off develop a plan for re-employment.
An outplacement program is a service provided by a company, or outside firm, to assist employees who have been laid off in finding a new position. The term “outplacement” is derived from being placed outside of the company. A typical outplacement firm works on a retainer, with the average price per day ranging from $500 to over $1,000.
Outplacement services typically consist of career counseling; résumé development; discussion sessions during which the employees develop their plans for re-employment; and workshops where they learn to network and prospect for new employment. Some firms also introduce the laid-off employees to their client companies in an attempt to find them a new position.
Other outplacement services provided by some employers include: work transition centers; information and referral; access to job listings, online job search resources; webinars; coaching or mentoring sessions; and access to a job search assistance website.
The outplacement services an employer provides depends on the type of layoff and what is negotiated with the employees involved in the termination. For example, if an employee agrees to resign instead of being laid off, then they will not be eligible for outplacement services. Some companies do not offer outplacement services to all employees, but only those who are eligible for severance or benefits.
The U.S. Department of Labor reviewed the evidence on outplacement programs and concluded that they do not guarantee increased employment rates, but there remains some chance of gaining reemployment after being laid off through an outplacement program. It is unclear whether some types of employees benefit more from outplacement services than others.
The cost and effectiveness of outplacement services varies widely, as does the quality of the service providers. Not all employers who offer outplacement programs use competent or professional service providers. And not all employers provide the same level of support to their employees. Some employers only offer outplacement services for a few weeks, while some provide them for six months or longer.
The usage of employment agencies and job fairs to find new positions varies from company to company. Some companies use these resources more than others, but some companies do not use the services at all. The reason some companies chose not to use employment agencies or job fairs is that they believe these options do not lead to permanent positions. However, some companies may use the services of for-profit organizations to help their own employees find other positions within the company.
Some companies also provide career counseling and résumé development to all employees, even if they are not laid off. Some human resources departments offer these services to all employees through their department.
Some companies also offer workshops on topics such as networking, outreach, and making successful job applications. The goal of the workshops is to provide laid-off employees with skills that can increase their chances of regaining employment.
The outplacement firm meets with the employees during the first week after termination to learn about their skills and interests. The firm then designs individual plans for each employee, taking into account the employees’ own objectives, as well as company needs.
The firm also helps the employees by providing them with résumé templates, style guides, cover letters, and interview guidance. Finally, it often helps the employees with networking and outreach.
The purpose of career counseling is to help people identify their skills, interests, values, and experience so they can understand what type of work they want to do next. If a person does not know this information about themselves it can be difficult to find a new job since companies will not know how their skills can be used to benefit the company.
The career counselor typically uses a system that categorizes employees into different types of workers, for example:
This helps determine what type of work or industries they will apply for. The career counselor also recommends one or more solutions depending on what issues are found in each category of worker after completing the test