Outplacement

As we mentioned at the beginning of this chapter, outplacement is an HR program created to help separated employees deal with the emotional stress of job loss and to provide assistance in finding a new job.31 Outplacement activities are often handled by consulting firms retained by the organization, which pays a fee based on the number of outplaced employees. Companies are often willing to pay for outplacement because it can reduce some of the risks associated with layoffs, such as negative publicity or an increased likelihood that unions will attempt to organize the workforce.32 Employers who provide outplacement services tend to give the goal of social responsibility a high priority as part of their HR strategy.

The Goals of Outplacement

The goals of an outplacement program reflect the organization’s need to control the disruption caused by layoffs and other employee separations. The most important of these goals are (1) reducing the morale problems of employees who are about to be laid off so that they remain productive until they leave the firm, (2) minimizing the amount of litigation initiated by separated employees, and (3) assisting separated employees in finding comparable jobs as quickly as possible.33 In addition, providing an outplacement service can help keep the remaining employees focused on their work. Without outplacement, a natural tendency for remaining workers would be to concentrate on how their former coworkers were treated badly and didn’t find jobs, rather than concentrate on moving the organization forward.34 Overall, providing outplacement can protect an employer’s reputation and help the organization be known as an employer of choice.

Outplacement Services

The most common outplacement services are emotional support and job-search assistance. These services are closely tied to the goals of outplacement.

Emotional Support

Outplacement programs usually provide counseling to help employees deal with the emotions associated with job loss—shock, anger, denial, and lowered self-esteem. Because the family may suffer if the breadwinner becomes unemployed, sometimes family members are also included in the counseling as well.35 Counseling also benefits the employer because it helps to defuse some of the hostility that laid-off employees feel toward the company.

Job-Search Assistance

Employees who are outplaced often do not know how to begin the search for a new job. In many cases, these people have not had to look for a job in many years.

An important aspect of this assistance is teaching separated employees the skills they need to find a new job. These skills include résumé writing, interviewing and job-search techniques, career planning, and negotiation skills.36 Outplaced employees receive instruction in these skills from either a member of the outplacement firm or the HR department. In addition, the former employer sometimes provides administrative support in the form of clerical help, phone answering, access to e-mail, and fax services.37 These services allow laid-off employees to use computers to prepare résumés, post résumés on the Web or send them via fax and e-mail, and to use copiers to copy résumés.

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