Outplacement

Outplacement is a service provided by an employer to former employees who have been downsized or laid off. It is intended to help a former employee transition into a new job or career. It is usually part of the overall severance package, or cash payments and other benefits offered to employees who have lost their jobs. Outplacement helps former employees move forward and also helps employers by protecting their reputation and reducing the likelihood that a former employee will sue them.

Background

The outplacement concept originated in the late 1940s after the end of World War II (1939–1945). British-born physician Bernard Haldane (1911–2002) developed a process to help returning veterans determine what skills they had and how to present them to prospective employers. Many war veterans were barely out of high school when they entered military service and lacked skills that would help them in the post-war economy.

During the 1960s and 1970s, employers began to adopt Haldane’s principles of determining strengths and filling gaps in skills to help former employees move on. This led to the concept of outplacing, or helping employees find their place outside the company. Although this seems altruistic, companies often have very practical motives for helping former employees find new jobs. They discovered that when they offered outplacement services, employees were less upset about being dismissed. It made the company look more caring and improved its image while making it less likely that the former employee would speak unfavorably about the company. Finally, outplacement made it less likely that the terminated employee would sue over being let go. This led to liability insurers offering better rates to companies offering outplacement. The concept grew in popularity, resulting in companies that specialized in career transitions and outplacement by the early twenty-first century. Throughout the 2020s, outplacement practices were forced to adjust due to the COVID-19 pandemic, advancements in technology, including artificial intelligence (AI), and changes in the economy.

Overview

Outplacement includes a variety of resources that can help the former employee determine his or her strengths and weaknesses, develop a plan to address any weaknesses and training gaps, and start the search for a new job or career path. These services can be offered by the company itself or companies specializing in helping with employment transitions.

Among the services offered are skills assessments, market assessments to help identify job opportunities, and a review of training opportunities. Coaching services—offered individually or in a group—can help the new job-seeker improve his or her resume and cover letter, learn or improve interviewing skills, and determine the best way to handle negotiating salary and benefits. In some cases, outplacement benefits include other services such as making a computer or phone available for the former employee to use in the job search, training to help update skills, and financial advice to help make the best use of cash severance payments and other monetary resources.

Outplacement resources are especially important when employees are leaving a job with very specific skills or have not had to interview for a job for a long time. It can help smooth the transition, possibly even helping the employee land in a better situation than he or she was in the previous job. Employees who are laid off should inquire with their employer about what outplacement services are available if they are not mentioned at the time employment is terminated.

Bibliography

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