Outplacement can mitigate employee’s loss of income, get him back to work faster
Susan was the new HR director at a consumer products company. Her mandate was to cut two per cent of staff.
In an executive transition team meeting, Susan raised the question of providing outplacement services. The team gave her a blank stare, then asked: “What the heck is outplacement and why do we need it?”
Unprepared, Susan stammered something about “treating people with dignity.” The team voted against her.
The first rule of outplacement? Don’t expect buy-in without a clear rationale and a compelling business case.
Outplacement is the provision of career transition services for terminated employees. These services are usually provided by consultants or coaches at an external firm, although some large organizations also provide outplacement internally. Outplacement coaches specialize in helping people to re-position themselves in the job market.
The specific services offered can include: on-site termination day support, office space, analytical tools (such as skills assessments and behavioural profiles), guidance for development of a career direction, resumé preparation, help with online searches and job applications, professional networking, direct marketing, interview skills enhancement and job offer negotiation.
Terminated employees provided with outplacement can be more successful at meeting their career objectives. Providing outplacement coaching helps people navigate the unfamiliar, bumpy ride of a job search and can mitigate an employee’s loss of income by speeding up his return to work.
Since this mitigation reduces the risk of wrongful dismissal action, employment lawyers will often advise employers to offer outplacement as part of a termination package. Another benefit of outplacement is its impact on branding — employers that provide outplacement are seen to care about the emotional and financial wake left by the termination decisions.
However, outplacement services are not necessarily appropriate for every organization or employee. The following questions can help make that determination:
• Is there a risk of legal exposure with this termination?
• Is there an implicit expectation by the employee or within the organization or industry for outplacement?
• Is the employee’s length of service, age or position at a high level?
• Will the terminated employee have a higher-than-average level of difficulty finding another position?
• Does providing this service harmonize with the organization’s brand?
• Do key clients or suppliers provide outplacement?
• Will the budget allow for this service to be provided fairly and consistently?
Choosing a firm
When choosing an outplacement firm, consider the following:
Firm profile: Explore the firm’s history, reputation, past clients, industry focus and capabilities as they relate to the organization’s needs. (For example, is a national firm or a small boutique firm a better fit?)
Location: Is the office location convenient, not only to the company but the employee’s residence?
Facilities: Does the firm have a professional office environment, receptionist, offices and meeting rooms and how do these compare with the organization’s needs and budget?
Program and service options: Is there a menu of programs to choose from, with different levels that match the organization’s needs? Are various program lengths offered? Are additional corporate services provided, such as on-site support or termination advice for managers? Are suitable methods of program delivery offered, such as workshops, one-on-one coaching and online/telecoaching?
Price: Fees usually depend on four factors:
• delivery type (such as group workshop, individual online/telecoaching or in-person coaching sessions)
• services (such as private offices for employees plus coaching, or coaching only)
• length of program (such as two, three or six months)
• level of employee (is he an individual contributor, team leader or executive).
As an alternative to choosing one outplacement firm, there is a growing trend to provide employees with a roster of three to five approved firms to choose from. This allows employees to make a selection that meets their needs.
Before making a final decision about an outplacement firm, there are two more key areas to explore in a face-to-face meeting:
Coaches and consultants: Ask about and, if possible, meet the coach assigned to the employee. Learn about his background, experience, business acumen and potential cultural fit with the organization.
Heart: This is hard to measure, but you’ll know it when you see it. The firm should ask questions and show a genuine interest in learning about the company, the situation and the employees. It should demonstrate caring and flexibility and be willing to provide the little extras you need.
Once a firm has been chosen, it’s important to keep the lines of communication open.
Pre-termination, be prepared to provide information about the termination date, whether the consultant is needed on-site that day, the length of service of the employee and his position, an overview of the reason for termination and a brief description of any issues that will be relevant in the termination and coaching process.
An experienced outplacement coach can provide valuable advice about orchestrating the termination process. He can guide an organization in the logistics of planning and carrying out the termination with consideration for things such as messaging, exiting the premises, gathering company property and security. However, the coach’s advice should never replace that of an employment lawyer.
On termination day, if the coach is on-site, he will meet privately with the employee after news of the termination has been delivered. The coach will briefly explain the outplacement service and provide emotional support, if needed, within a commitment of confidentiality. The coach may also assist the employee with packing up her belongings and exiting the building. A high degree of sensitivity is required in the delivery of these services.
In the days and weeks after the termination, the employer has a right to information about the employee’s level of engagement and satisfaction with the service. However, details of the employee’s career goals, actions or the content of discussions are confidential and the outplacement firm won’t share them with the organization.
Hanna Dunn is president of the HR consulting firm Dunn People Strategies, located in Mississauga, Ont. She has been helping businesses to enhance employee engagement and performance for more than 25 years. She can be reached at [email protected] or visit www.dunnpeople.com.
