Why Outplacement Services Gaining Popularity

Outplacement services are one of the support services provided by the companies in assistance with the third party service providers to the terminated employees who have been removed from the organization due to a business management decision related to market conditions or feasibility loss of certain business segment. The business condition wherein a section of employees are removed from the organizational structure in the sudden streak, it becomes an unstable condition within the organization. The situation becomes more complicated when that section of employees contains individuals who have served in the organization for a long time and are asked to leave suddenly. It is essential to handle the situation in an organized and critical manner to avoid unwanted conflicts and lawsuits that damage the brand value and credibility in the market.

According to published sources, in the past five years, there are many companies who have offered outplacement services to their terminated employees across the globe. The services usually range from 1 to 3 months to 3 to 6 months based on the positions and the employee characteristics. Until now there have been certain mixed reviews regarding this type of service. There have been instances where terminated employees have claimed that there were very few consultants for a large number of employees which resulted in distortion and clumsiness. There have been talks about the quality of the service as well. Some individuals have said that the advice received from the consultants are trivial and these do not actually have a positive impact on the job search. The processes used for the outplacement have been sometimes branded as insufficient. But one of the most heard about problems with the service is the lack of individual attention to the employees. With all these criticalities at hand, there are certain pointers that need to be kept in mind while looking for the outplacement services.

• The first and foremost step towards approaching the outplacement scenario is an effective and transparent communication system. The decision of the outplacement should be informed to both the management board and the employees through proper channels. The outplacement service provider profile should be conveyed along with a detailed explanation of the services that is to follow in the coming weeks or in a time period.

• It is better to involve the terminated employee as a part of the selection process and structuring of the training procedure involved in the outplacement. The company needs to understand that the service is directed at the terminated employees for their career benefit. Hence involving some of them in the process makes the entire process much more fruitful.

• Lastly, it is better to choose an outplacement firm that worked in the similar industry with the same profile industry players so as to understand the current scenario of the entire system. Such firm also understands the probable lawsuits and risk mitigations associated with the process which helps in better management of the situation. It also helps in reducing the panic wave among the exiting employees and protecting brand image.