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Outplacement Services for Agile Business Leaders

I don’t know if I have ever met anyone who says, “ I can’t wait to fire people… layoff people… let go of people.” Most managers, business owners and business leaders accept that these are part of being a responsible business owner. Some businesses aren’t aware that you can make the process easier for both you and the person being terminated by picking the right outplacement service provider. These types of services can benefit agile business leaders who are planning ahead to better care for their people and their business as business and the economy change.

What is an outplacement service?

Outplacement service is the process, communication and tools to offer people who will lose their job a service to find them a new job. 

What do outplacement services typically cost employers?

That depends on what kind of services you are offering and who you partner with. The most common form of outplacement services can range from $10-$20/person to hundreds of dollars. The choice to invest in a service like this is based on whether or not you want boomerang hires, good referrals, good will or just to let people go. 

How do you pick the right outplacement service company?

That depends on what your people philosophy is and what your priorities are. The kind of outplacement services you offer and who you partner with can make a big difference in boomerang hires and bad reviews. Even when you do everything right, fair and with reason, you still may get bad reviews and angry people. This is what we recommend when evaluating your outsourcing service provider.
  1. Find out if they are a staffing agency, a recruitment process outsourcing company or a talent marketplace.
Staffing agencies typically will have lower fees on outplacement services and will collect employee information and resumes to eventually place them with new employers.  Staffing agencies today may be service providers like Robert Half, or they can be cloud-based businesses like Upwork or TopTal. The client in staffing is the employer. Recruitment process outsourcing (RPO) typically will have higher fees because they are very custom. They can offer resume work and support features like communities and networking events. Services like LHH or executive headhunters like Korn Ferry are best for senior directors and above. The client in RPO is both representing qualified professionals and employers. Talent marketplaces are typically very people centric. Their customer is the working professional, and they make it very easy for companies who are hiring to build their workforce on demand in direct hire environments. Companies hire pepelwerk as their outplacement service provider to give more people access to on-demand personalized work-life planning tools. The priority in pepelwerk’s talent marketplace is the person making the work transition. pepelwerk charges the employer fees based on number of people receiving services and the employer gets outcomes reporting.
  1. Understand your free resources through state unemployment.
Every state has an unemployment service. These resources are available to all employers who pay employment taxes. There are templates that the state provides and resources for the people who are being laid off. Former employees will need to know these resources to receive unemployment benefits if they are eligible. Find more information for your state or region by going to your federal resource page. Here is a great resource for the US Department of Labor.
  1. Have a clear compliant methodology for how you decided who will be terminated.
Some companies have a Last Hired, First Fired approach. Some have a performance-based approach. Some don’t really have a clear policy or method and allow managers to make the decision. Each approach has its risks. Make sure to talk with experienced professionals and in-house labor council to ensure that you are making good decisions for the company. Read what the Harvard Business Review about the Right Way to Fire Someone
What is the difference between outplacement services and career service outsourcing?

Some outsourcing services providers only focus on businesses when they need to let go of employees and only provide services for experienced working professionals. Companies, like pepelwerk, are experts in career services and outplacement because we focus on the entire workforce building needs of business, and we make sure that a wide range of people can get matched to work based on skills, abilities, attributes and attitudes to accomplish their work-life goals. The right decision between a legacy outsourcing service provider and a modern offering really depends on how many people you need to lay off and the career stage of those people. 

Leverage outplacement services that focus on the employees transition.

It’s important to remember that no matter what method you choose, how you end a relationship with an employee is just as important as how you started it. It’s also important to remember that losing your job is intense for anyone and that offering the right support services can mean all the difference in the world to your employee.

 

If you want to learn more about pepelwerk outplacement services for employers, schedule time to meet with a solution specialist.  

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