The Uncertain Value of Outplacement

So, Outplacement is getting a bad rap. The service does not appear to be coming through the Recession with its reputation intact for delivering value, dependability, and reliability. There are three reasons for firms to offer Outplacement to their employees: it improves the firm’s recruitment and retention of quality workers, it improves employee morale, and it reduces the likelihood of legal challenges from angry laid-off staff. Given that Outplacement should be a wonderful benefit to offer downsized employees and that the need for Outplacement services is greatest when there are a lot of people who need new jobs, you’d think this is a great time for the Outplacement business.

And in a way it is. Outplacement firms are busy. For example, I recently tried to pick up some career consultation work with Lee Hecht Harrison, a firm specializing in Outplacement, only to hear that they not only had no work for me, but that their Manchester, NH office had been deluged with calls like mine. I’m reading too that there has been much activity at Outplacement firms nationally. The Insala Outplacement Industry Forecast for 2009 offers a case in point. 

But on the other hand, it is not good for this business to be widely thought of as ineffective. Recruiters are hearing stories of companies unhappy with the results of their expended Outplacement dollars. New Hampshire Business Review reports in their April 10-23 issue that a workplace review and ratings web site, Telonu.com, released survey results showing 94% of respondents rating Outplacement support as poor or very poor! 

Why such a dismal opinion? Well, the first thing that comes to mind is the supply/demand problem. There are more job seekers than available jobs right now. That fact alone will lead to some despondency. But where do these people get the notion that Outplacement necessarily leads immediately to another position? Yes, I know that’s the point of Outplacement, but it can’t be a guarantee, especially in these times.

If you have gone through three or six or twelve months of Outplacement service and are still unemployed does that mean that the service was inadequate? Perhaps. Or it just means that the Recession is really bad. If an Outplacement provider is very clear with you about what reasonable outcomes can be achieved, then you could go through the course and still feel that you gained value even if you are still without a job.

Outplacement should be designed simply, unambiguously, and as rationally as possible. This should be more about direction than dreams, focused not fuzzy, more coaching than counseling. It should be as much about skills as knowledge.

Outplacement needs to have the following features and goals. It should:

  • Be customized and directed to your specific situation.
  • Leave you clear and confident about the next step in your career development, which is reflected in your whole job search effort.
  • Assist you in developing job targets that include desired industry, geography, organization size, position, and company style/culture.
  • Go beyond Networking to include skill development in directly contacting those with the power to hire.
  • Teach you how to maintain valuable relationships.
  • Instruct you in interviewing, interview follow-ups, and negotiating the terms and conditions of employment, including salary.
  • Be a low overhead operation replacing cubicles and service-provided computers with your home computer and an expert coach.
  • Have available long-term service options, for up to a year, if necessary.

You should always walk away from Outplacement feeling that you’ve got the knowledge and skills to effectively engage in the job search scene. Remember, most of your competition does not have the quality edge Outplacement can give you.

Sure, it’s tough out there. There is even more reason to systematically prepare yourself. With a well delivered Outplacement you might not have that great next job right away, but you will at least feel that the time spent was worth it.

Bill Ryan