Outplacement: Overview, definition, and example
What is outplacement?
Outplacement refers to the support and services provided by an employer to help employees transition to new employment opportunities after they are laid off or terminated. These services are typically offered to help the employee find a new job, develop job search strategies, improve resumes, and prepare for interviews. Outplacement services can be provided by the employer directly or through third-party providers, and they are intended to assist displaced employees in finding new roles quickly and smoothly. The goal of outplacement is to offer practical and emotional support during a potentially difficult transition, ensuring that employees have the tools and resources to secure new employment opportunities.
Why is outplacement important?
Outplacement is important because it helps employees navigate the often challenging process of finding new employment after being laid off. For employees, it provides valuable resources and guidance, making the job search less stressful and more efficient. For employers, offering outplacement services can improve the company’s reputation, as it shows a commitment to helping employees even after their departure. Providing outplacement can also reduce the likelihood of legal disputes, as it demonstrates that the company is acting fairly and responsibly in its treatment of employees. Additionally, outplacement services can help maintain morale and retain a positive relationship with remaining employees.
Understanding outplacement through an example
For example, a company undergoes a restructuring process and decides to lay off 100 employees. As part of the severance package, the company offers outplacement services to the affected employees. These services include career counseling, resume writing workshops, job search assistance, and interview preparation. The employees who take advantage of these services receive personalized guidance, helping them quickly find new job opportunities in their field. The company also provides access to networking events and job fairs, which enhances the chances of the laid-off employees securing new roles.
In another example, a senior executive is let go due to company downsizing. As part of the outplacement package, the executive receives one-on-one career coaching, including executive resume writing, interview coaching, and personalized introductions to recruiters. This support helps the executive transition into a new leadership role more smoothly and effectively.
An example of an outplacement clause
Here’s how an outplacement clause might appear in a severance agreement:
“As part of the severance package, the Employer will provide the Employee with outplacement services through a third-party provider. These services will include job search assistance, resume writing, interview coaching, and career counseling for a period of [specified duration]. The Employer agrees to cover the costs of these services as part of the Employee's separation package.”
Conclusion
Outplacement is a valuable service that provides both practical and emotional support to employees transitioning out of an organization. It benefits the employee by easing the process of securing new employment and benefits the employer by demonstrating care and reducing the risk of legal complications. Whether provided through in-house resources or external firms, outplacement helps to make the transition process more supportive, improving outcomes for both the employee and the organization.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.