Outplacement services: Overview, definition, and example
What are outplacement services?
Outplacement services are professional services provided by a company to support employees who are transitioning out of the organization, typically due to layoffs, downsizing, or restructuring. These services are designed to help departing employees find new jobs by offering career counseling, resume writing assistance, job search strategies, interview coaching, and other resources. The goal is to assist employees in making a smooth transition to new employment opportunities while minimizing the negative impact of job loss.
For example, if your business needs to lay off staff due to financial constraints, you might offer outplacement services to help those employees secure new jobs and successfully navigate the job market.
Why are outplacement services important?
Outplacement services are important because they demonstrate that the company cares about the well-being of its employees, even after they leave. Offering outplacement support can help maintain a positive company reputation, reduce legal risks, and improve morale among remaining employees. It can also ease the emotional and financial stress for departing employees, which can help them transition more quickly and effectively to new employment.
For SMBs, providing outplacement services can help manage difficult transitions, minimize potential negative effects on the organization, and foster goodwill among former employees, who may remain valuable professional contacts or future customers.
Understanding outplacement services through an example
Imagine your small business is undergoing a restructuring, and several employees are being laid off. To support these employees, you hire an outplacement services provider to offer career counseling, job search assistance, and resume-building workshops. The provider helps each departing employee identify their skills, update their resumes, practice interview techniques, and search for new job opportunities, increasing their chances of securing new employment quickly.
In another example, if your company is downsizing and offering severance packages to employees, you may include outplacement services as part of the severance package to help employees transition into new roles and reduce the emotional strain of losing their jobs.
An example of outplacement services in action
Here’s how outplacement services might be referenced in a business communication or agreement:
“As part of the severance package, the company will provide outplacement services to all affected employees, which will include personalized career coaching, resume writing assistance, and access to job placement resources for a period of three months.”
Conclusion
Outplacement services are designed to help employees transition out of a company by providing career support, job search tools, and professional guidance. For SMBs, offering these services can enhance the company’s reputation, improve the transition process for departing employees, and help maintain positive relationships with both former and remaining staff. Providing outplacement services demonstrates a commitment to supporting employees even in challenging circumstances.
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.