History
Outplacement
Companies need to restructure!
Companies need to make adjustments due to changing economic conditions. By
hiring employees, companies take on a social responsibility. Situations of
separation between an employee and a company can be brought about by various
reasons and can cause an extreme burden to the individual, the company, and
the overall working climate. Long-term employees and senior staff members
may be most affected by such circumstances which could lead to a personal
and existential crisis for those involved.
Like so many others, the term outplacement has its origin in the USA, where
it was used in connection with the process of re-integrating soldiers into
civilian life after their turn of duty. Subsequently outplacement became an
instrument for high-level executives throughout all industry sectors and the
efforts to assist them with finding a new position somewhere else. To date
this group remains a large part of all outplacement customers. However, an
increasing number of companies offer counseling services during periods of
group outplacements. Naturally outplacement consultants cannot revive a
flailing job market or create additional jobs; however, the advisor can
ensure that the most effective methods and tools are being utilized during a
hopefully quick transition to a new job. This requires expert knowledge and
appropriate networks in the industry segment for which the outplacement
takes place – in our case the transport and logistics industry.
A service for large companies only? Certainly not!
Contrary to common belief most mid-size companies find themselves
increasingly in situations where they must respond to changing economic
conditions by adjusting the size and configuration of their workforce and
due to their size almost always at a much faster pace than large
corporations. Some of the more prevalent triggers are mergers &
acquisitions, consolidation, or location changes.
Outplacement consultations should be engaged as early in the process as
possible to limit negative repercussions or avoid them entirely. The goal
here is to minimize conflicts from the beginning, help the affected
employees with extensive support, and allow the company to demonstrate
social competence.
Here outplacement consultants can help with creating and conveying a secure
environment to the remaining employees. Professional outplacement not only
reduces expenses but also limits the negative effects of short term and
temporary solutions such as reassigning internal resources or delaying
necessary layoffs.
Outplacement often helps to avoid or limit the payment of horrendous
separation packages and substantially reduces the risk for expensive
law-suits as well as a loss of image on the part of the company as well as
the employee.
One of the key problems is the fact that companies still shy away from the
outplacement expenses, while they have little or no problems paying large
sums for severance packages and law-suits, seemingly without much thought.
All aspects should be considered, including the more subtle problems created
by layoffs such as extensive management expenditure and the ensuing
uneasiness among the remaining co-workers.
Outplacement is not Outsourcing!
Outplacement is no miracle cure. Not a single job is saved or any layoff
notice is avoided through it. Still professional Outplacement-Advisors can
avoid unemployment for the concerned employees which in most cases prefer a
new position over a generous severance package.
Many managers believe that smaller outplacement companies are less effective
than larger organizations. This is certainly not the case since many of
those smaller companies are not only highly competent in dealing with these
situations in general but they also have highly specialized knowledge and
extensive connections in their core markets.
Another excellent alternative to outplacement companies are executive search
firms. Many of them are very experienced in Outplacement-Consulting and the
most important aspect – finding a new job for the candidates - is their core
competence.
As a specialist in the transportation and logistics industry, adi Consult
Germany/USA utilize the advantages of their own extensive partner network
who represents a global network of logistic-consultants. Outplacements for
expatriates on a national and international basis can be handled
particularly well by adi Consult.
The cost for outplacement engagements depends upon several factors such as
the total number of contracts awarded and whether the mandate is for
individual of group outplacements, however, a good rule of thumb is 20% -
30% of the person’s yearly income. Terms for group outplacements are usually
negotiated on a case by case basis.
Your advantages at a glance:
How
does the process work?
After a firm has made the decision to reduce its head-count, an outplacement
consultant is called in. It is best to have the consultant already involved
before any preceding arbitration proceedings. The often tense situation of
giving notice can be relaxed and made less hostile through the presence and
leadership of the outplacement consultant.
Helping an employee to deal with the psychological aspects and in some cases
even shock over loosing her/his job, as well as the process of coping with the
situation, internal and external communications, and preparing the employee for
new job-applications, setting up the personal profile and preparing the person
for new tasks are all a part of this type of consulting.
Group outplacements are handled similarly fashion, however, group training
sessions are a part of the approach.