How to Use the New Outplacement

A Misunderstood and Underused Employee Benefit: Considering the value of outplacement to employees, employers, and society as a whole, why isn’t it a more mainstream employee benefit?

It seems odd that so many outplacement firms feel a need to define outplacement on their websites. It begs the question: “If I don’t know what it is, how do I know I need it?”

What is Outplacement?

Here’s a basic definition to get us started: Outplacement is a service designed to help employees who are separating from their jobs get reemployed. While outplacement can cover voluntary and involuntary separations, it’s more common in cases involving involuntary separations.

Maybe it’s Just Me, But it Seems like a Familiar Benefit

Instead of relying on statistics published by industry insiders, walk down any street in America and casually ask a mix of working-age pedestrians if they know what outplacement is. If any of them answer affirmatively, ask if they can name a single outplacement firm. Lastly, ask if their current or a former employer has ever offered outplacement services.

If you’re astonished by the general lack of awareness about outplacement services, join the club. We believe outplacement is one of the most misunderstood, narrowly defined, and underused employee benefits on the market.

Let’s take the survey idea a little further. If you were to ask a room full of high-level business executives about outplacement, most would likely know what it is and some could name a vendor. Seems kind of elitist, doesn’t it?

In light of its business and social value, you’d expect outplacement to be more mainstream. Yet, despite its value, outplacement remains a limited-use and episodic employee benefit.

Should Outplacement become more of a Mainstream Benefit?

One can use U.S. Department of Labor (BLS) statistics to make a case. Recent reports indicate over five million total separations and approximately 1.7 million layoffs and discharges occur each month. Sixty+ million separations per year is an attention-grabbing number.

Some might argue that discharges, voluntary quits, and the like shouldn’t be a concern. But those with a good understanding of unemployment compensation, employment liability, company branding, and related issues, know all separations must be carefully managed. They also know that the best outcomes for businesses and employees alike stem from quick reemployment of those affected.

Getting to Mainstream

Outplacement is generally triggered by employer-initiated reductions in staff, and those reductions are typically driven by a need to save money. Unfortunately, spending money to save money doesn’t work for all employers. Hence, a key barrier to broader coverage is cost.

Whether it’s related to cost or some other factor, it’s probably obvious that no outplacement firm can be all things to all people. There are coverage gaps left unfilled.

The good news is there are several models of traditional and non-traditional outplacement. Each has its unique benefits, focus, and cost. What isn’t happening, however, is the simultaneous use of multiple vendors to address the varied needs of employers.

A Shared Services (Global Business Services or GBS) Model to the Rescue

A newer form of outplacement called ultra-outplacement addresses those needs, and does so at little or no cost. It does this through the creative use of technology, expanding the definition of outplacement provider, and using processes that capitalize on shared services and virtual business model concepts.

Outplacement vendors willing to adopt a shared delivery model can cost-effectively extend their services to fill any coverage gaps. While traditional outplacement vendors might initially balk at the idea, employers who foot the bill can insist on this model despite objections by a reticent vendor.

On the other hand, being able to extend their coverage to 100% of separating employees regardless of reason for separation, and do so at zero additional cost, may resonate well with outplacement vendors once they digest the idea. After all, what's good for clients should be good for them.

“With ultra-outplacement, employees, employers, and society as a whole benefit from expanded outplacement coverage. Let’s face it, it’s pretty hard to argue against 100% employee coverage when cost ceases to be a barrier,” said Jeff Rogers, CEO at Job Hunter Pro. “Extending outplacement to anyone not already covered, and doing so at little or no cost, is a no-brainer.”

Ultra-Outplacement is Ultra–Flexible … And Socially Responsible Too

• Zero- and low-cost plans are available, eliminating cost as a barrier
• Can be provided directly through employers or any HR service provider
• Enables 100% workforce coverage regardless of position or reason for separation
• Can be used any time, for anyone, and for any purpose ... over 100 uses
• Facilitates optimal unemployment compensation and employment-related savings
• Cloud-based solutions can be self- or full-service, generic, branded, or custom
• Any organization serving people who need help getting a job, including social service agencies, can now offer outplacement and job transition support services at no cost.

Because a defining characteristic of ultra-outplacement is its flexibility, it can easily supplement existing traditional plans. It can also be used as a stand-alone outplacement solution. Either way, it results in 100% employee coverage at little or no cost to the employer. Everyone benefits when outplacement goes mainstream.

Using the New Outplacement

The ultra-outplacement concept suggests hundreds of uses. There’s probably more. From day-to-day HR actions, to more complex issues such as the impacts of mergers and acquisitions, when outplacement goes mainstream, there are benefits and ROI for all.

For an in-depth look at ultra-outplacement and how you can help propel outplacement to mainstream status, visit www.jobhunterpro.com/Solutions/Outplacement. You'll also learn 101 uses for utilizing the new outplacement in your own organization.

In the meantime, we’d love your feedback and suggestions; especially regarding new features and benefits you’d like to see adopted by the outplacement/transition services industry. If you like this post, please let us know.