What Is the Meaning of Outplacement?

Outplacement Defined
1. Outplacement is a service provided by companies to assist former employe
es in their search for new jobs. The companies contract with outplacement compan
ies or consultants that work with the individual employees to help them prepare
résumés, identifying possible job leads, and similar services. In many cases,
the company pays for the services of the outplacement company or consultant. How
ever, individuals may seek the services of a retail outplacement firm, which the
y would pay for out of their own pockets.
Vocational Assessment
2. One of the first steps in the outplacement process is determining the jo
b candidate's qualifications for other open positions. That is done through a th
orough assessment of the candidate's skills and interests. Standard career-place
ment tests may be used, as well as one-on-one counseling with one or more outpla
cement officers.
Résumé Preparation
3. Helping the candidate prepare to approach a potential new employers is a
nother important function of the outplacement firm. The outplacement firm will t
ypically assist the job seeker in preparing one or more targeted résumés. Outp
lacement firms may also assist with cover letters and other marketing strategies
, such as preparing a profile for career networking platforms such as LinkedIn.
Interview Coaching
4. Preparing the job candidate for the all-important job interview is a vit
al role of many outplacement firms. Interview coaching, often involving mock int
erviews, may be provided to the job candidate. The outplacement officer will obs
erve the job candidate and offer advice on how he or she communicates verbally a
nd nonverbally.
Considerations
5. The level of outplacement services provided will vary according to the a
greement between the company and the outplacement firm. Typically, high-level ex
ecutives will receive more comprehensive services than mid-level employees. Howe
ver, displaced employees should not expect an outplacement firm to do all the wo
rk of helping them find new jobs.
The final benefit: Outplacement
By Joan Lloyd
Joan Lloyd and Associates
Printer Version
You have risen through the ranks of your company to the position of vice preside
nt. You've been a good performer. Then the roof caves in. The company is acquire
d by another firm and a few months later your position is eliminated. You find y
ourself confused, angry and out of work. This scenario, and others like it, happ
ens every day all over the country. Most people think, "It could never happen to
me." But, in the ever-shifting business climate, the fact is that it's a possib
ility you can't ignore.
What are the chances you'll be able to find another job? Obviously, that depends
to a great extent on things like your work experience, your ability to relocate
and the contacts you have established.
Whatever the situation, jobs at the executive level are scarce and scattered. Em
ployment agencies usually don't handle jobs above the $50,000 range, and it may
have been a long time since you have had to look for a job on your own.
This situation has spawned a relatively new corporate benefit called outplacemen
t, a concept only about 15 years old and still maturing. Basically, an outplacem
ent firm is hired by the company that fires you, for the purpose of helping you
to find another job.
Various reasons
But what does your former company gain? One of the most obvious reasons for offe
ring outplacement is to build a reputation as a caring company. Other reasons ar
en't as noble. Charges of discrimination and other lawsuits initiated by former
company executives can be embarrassing and expensive.
"If they're talking to an outplacement counselor, they're probably not talking t
o a lawyer," says Terry Malek, outplacement counselor and management consultant
with Maglio and Kendro Inc. of Milwaukee.
Most people are extremely upset and in a state of shock following a termination.
They have no idea what to expect from an outplacement agency. Here are some thi
ngs to keep in mind in case you should ever have to use an outplacement service.
Do your negotiations at the time of termination
Remember, out of sight is out of mind, so before you walk out the door, find out
exactly what the outplacement firm has been contracted to do.
Also, try to negotiate for as much severance pay, vacation pay and as many other
benefits as possible. It takes most people in these circumstances at least six
months to be hired, so negotiate with this time frame in mind.
If your company offers no outplacement help, try to get a higher severance amoun
t. The reason you have been terminated will determine the strength of your negot
iating position.
Know what the outplacement firm has been contracted to do and insist that they s
tick to it
Companies often pay 15% or more of an executive's former salary for outplacement
service, plus the expenses of stationery typing and printing a resume.
In spite of the sizable fee, service to the job-hunting executive can fluctuate
in quality, depending on the firm. If the outplacement firm doesn't place you wi
thin the first few months - and they have agreed to help you until you find a jo
b - protest if they begin to withdraw their support.
"Because the individual feels like a failure, they tend to blame themselves and
rationalize that the outplacement counselor did what he could," says Malek, "whe
n, in fact, it's probably the failure of the outplacement counselor who has aban
doned the case."
Insist on personalized service
Some bigger outplacement firms use an assembly line approach. One person counsel
s you, another does your market research and another writes your resume.
If this appears to be the case, request the services of one counselor who will w
ork with you until you're hired. Your campaign will be more tailored, you will r
epeat yourself less often and you will probably get more personal coaching and c
ounseling. This counseling may even include your spouse, particularly when reloc
ation is being considered.
It's important to remember that your marketing campaign should be different from
everyone else's campaign. Even if the job you want is relatively common, the jo
b market changes constantly, and your background, skills and experience are uniq
ue. You will probably find a job that's right for you if you have one counselor
who knows you personally.
What is offered?
What does a full service outplacement firm offer?
A pre-termination conference is held with your manager to discuss the circumstan
ces from management's viewpoint. All information regarding severance pay, vacati
on pay and other benefits are discussed.
Then a post-termination conference is held with you immediately after you are te
rminated. The purpose is to put you at ease regarding your situation, and to exp
lain the outplacement process.
Vocational assessment may be done to determine your strengths and weaknesses and
the potential career opportunities you would be suited for. Preparation of your
resume, cover letters and marketing letters will require comprehensive data gat
hering sessions. You should insist on a personalized, accomplishment-oriented re
sume. Brochure-type resumes, resumes that don't name the companies you have work
ed for and letters sent without resumes should be avoided.
Finally, interview coaching is usually provide to help you tactfully answer ques
tions about your former employer. Particular attention is given to the way you a
re coming across verbally and non-verbally to a potential employer.