An HR manager would, at least one point in their career, go through the process of downsizing. Even though downsizing is good for the company as only people who are highly productive are left in the company and huge amount of money, that was being given away as salary to all the laid-off employees, are released the process can get nasty. Employees don’t know what their future would be in the company, would surely be worried. Not knowing would even make them slack in their responsibilities. This is where outplacement firms come and help run the whole process smoothly.
Why is outplacement support provided?
There is a long list of outplacement firms that are providing outplacement support to various companies. What is it that would make the employer take the help of a specific firm? Is it the package they provide? Or the outplacement services cost? How quickly and smoothly they can do the work? Or someone they can trust to get their ex-employees a job after they have been laid off? The answer to this is quite simple, a mixture of all of the above.
Outplacement support is not provided by every organization. This is a service provided by organizations who want their ex-employees to have a safe and quick transition from their current job to a newer one. These companies want their employees to have proper support and counseling for their future and give them motivation for a new career where they can excel. Also, this helps the current employees to know that if they are laid off in the future, their employer won’t abandon them but help them in getting a career that suits them better.
How Much Can an Outplacement Support Cost?
Wall street journal published an article in 2009 that said that in the last few years, those companies who had to go through downsizing had been looking at a list of outplacement firms that provide them quality support in minimum outplacement service cost. The average outplacement service cost, according to the journal, was about $3589 per employee.
According to WSJ, almost 58.5% of the employees get around 1 – 3 months of outplacement support while 17.7% of the employees get it for 3 – 6 months. Usually, those on the executive positions get better and longer support.