Understand outplacement in under 5 minutes thanks to this quick guide written by our recent A level work experience student, Matthew. He explains what he’s learned in his week with Chiumento.

What is outplacement?

Outplacement is a specialist service paid for by employers to help employees that they have recently made redundant. The service is designed to help those leaving find a new career that’s best for them.

In the UK outplacement is an optional part of a redundancy package. However in some countries it is a legal requirement to provide employees with outplacement support. It is therefore important to understand outplacement requirements in your country.

Outplacement ensures departing employees get the advice they need – supporting them to transition well into a new role or activity. For example, that could include starting a business or active retirement.  This process often includes steps such as coaching, workshops, advice, a support network, knowledge and more which are all tailored to the career or industry chosen by the delegate.

Who receives outplacement?

Outplacement is an effective method of helping people into new employment.  Once it was only a service offered to those in a senior position but is now available to all. This is a widely used process across the globe used by many organisations of different sizes and types. It’s seen by many employers as an integral part of their offer to employees. Giving them confidence they’ll be looked after even in difficult times.

In a very competitive job market – for example during a recession – outplacement is a very effective method of giving employees who are made redundant a real advantage. Helping them get back into employment sooner.

How does the outplacement process work?

The employer sends details of the employees being made redundant to the outplacement service provider. They then contact the employee to explain the programme being offered.

The outplacement service often provides one-on-one meetings – in person, online or over the phone. These meetings may be with a coach or a career adviser depending on the type of help the individual needs. A coach can help people unsure of what they want to do, or who are  thinking about a change of career direction. An adviser may provide more practical helps such as how to find opportunities, tailor a CV or prepare for an interview.

How does outplacement differ from a recruitment agency?

It is important to understand outplacement is an advice and coaching service. Outplacement businesses do not directly place people into jobs like recruitment firms. Individuals still own their job search, but the outplacement provider will offer knowledge, training and support through the full journey of finding new employment. Making losing their job far less stressful for the individual.

This is a process which is tailored to meet each delegate’s individual needs and requirements. A good outplacement programme allows them to to get access to resources – including e-learning, webinars and videos – which can help them through the process.

Protecting your business reputation

Providing outplacement shows that you have a genuine care for your employees and are willing to invest in their well-being. This can help put the business in a positive light and can help recruitment in the future as people will see the good the business is doing for not only its customers but also employees.

Reducing risk

Departing employees receiving outplacement are usually in a better mindset. If no help it is offered, it can lead to the workforce becoming agitated and feeling like they’ve been abandoned by their employer.

Providing outplacement also makes it less likely employees will take legal action. A supported employee leaves on better terms, with more hope in finding new employment.

Increase employee morale

Redundancy doesn’t just impact those leaving. It impacts staff remaining too. Providing outplacement helps remaining employees feel less anxious for departing colleagues.  Allowing them to focus back on their job rather than dwell on the fate of those leaving..

Financial benefit

Getting your remaining employees re-focused helps with key things like productivity, quality and customer service. It may also stop them thinking about leaving. Re-building trust is vital after any organisational change. Offering outplacement says you support your people in good times and bad.

For the employee who leaves, outplacement means getting a new job faster. In turn minimising the earnings lost between leaving one job and starting another.

Many different products to choose from

There are many different outplacement packages to choose from. It is important that businesses choose the one that best for their people. For example Chiumento has four key product groups – JetStream, Accelerator, All Inclusive and Executive. The latter three can in turn be tailored to different needs and budgets.

Return on your investment

Seeing that your business is doing athe right thing says a lot about your ethics or morals. That will boost your employer reputation and in turn make it more likely that workers will want to join in future. You may also attract new customers as the business is seen to operate ethically. This is key for some customers as they only want to spend with companies with strong social responsibility.

In conclusion

I hope this short article helps you understand outplacement and the benefits it brings to employers and employees. If you’d like to know more visit the Chiumento website or contact them.