Outplacement sector can lend a helping hand

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Published October 1, 2011
 
Outplacement sector can lend a helping hand

By PAUL HENG

THE unusual thing about the outplacement industry is that it is one of the few that runs counter-cyclical to the state of the economy.

When economies are buzzing with activities and sales figures are moving steadily northwards, the need for outplacement support peaks out, and even diminishes.
When the reverse happens, like what we are witnessing globally now, outplacement businesses tend to get a whole lot busier.

Outplacement, or career transition as it is also called, is a company-paid benefit that is provided to employees whose jobs have been eliminated, usually because of business restructuring and cost management needs.

Companies have also been known to provide outplacement support to ease the pain and trauma of exiting employees arising from management changes, and sometimes underperformance. And, sometimes, management uses outplacement to ease out the corporate deadwood.

The primary motivation for doing so, as the benefit is not necessarily mandated by law - with the exception of a couple of European countries - is to provide the professional support, both emotional as well as practical, for affected employees to exit gracefully, not lose too much of their self-confidence and self-esteem, and be able to have the tools and techniques needed to start a new career.

The cynic will say that management provides outplacement to ease their conscience (about having to break the rice bowls of their colleagues), and to be able to sleep better at night.

In the region

Here in Asia, a couple of outplacement vendors (defined as having outplacement support as their core business) is all that the industry consist of. This is unlike the search/placement industry, where there are literally thousands of players, of all sizes, ranging from the listed multinationals, to the one-person business.

These two industries can be said to be on opposite ends of the spectrum - one finding the talent to place into companies, and the other (outplacement), moving talent out of organisations and supporting them in their quest for the next challenge or job.

The outplacement industry has evolved much since the day I stepped into it - which is about 15 years ago. Some have re-branded themselves to become organisational development (OD), executive coaching and talent management businesses.

Just like other business organisations, the number of players have steadily shrunk over the past decade - and in pretty much the same way too - the big gets bigger, and the smaller ones get swallowed up. The outplacement programme delivery methodology has too changed. From the initial resume writing service, to job search techniques, for example networking, the mode of delivery has slowly, but surely shifted to one where human interaction has, and will continue to, slowly fade away. The cause - technology.

There is of course value in companies investing in outplacement programmes for their ex-employees. A more recent survey (published in July 2011) by Aberdeen Group in the US revealed the benefits of such support to both employers (users) and outplaced employees (beneficiaries). Sponsoring organisations get to retain their positions as preferred employers, since ex-employees do not badmouth them as much.

More importantly, especially in the US, companies get sued less (for wrongful dismissal, discrimination, etc), saving them some compensation money. Looking at it from most angles, companies tend to see paying for outplacement services as a good investment - money well spent.

Looking ahead

Having said this, the future of outplacement services is uncertain. As corporate creatures (your Gen Xs, Ys and eventually Zs) become even more technology-savvy and e-connected, such as via Facebook and Linked-In, the value of falling back on the outplacement consultants' network of contacts become less necessary.

Indeed, this aspect of outplacement support has consistently been rated highly by outplaced candidates as the most practical and useful part of their outplacement support programme. Studies have proven that networking (knowing people/and being known by people) is the most effective means of securing qualified job leads.

And as being outplaced become more of a common occurrence, people can get used to being fired and losing their jobs. Hence, the emotional support aspect becomes less of a necessity.

However, I will not be surprised if the industry continues to stay relevant and thriving. From experience, people just do not network enough - reasons range from ignorance of the need to, ignorance on how to, to the fear factor.

Yes, this is true, just like public speaking, networking is also one of the dreadful things that keep people indoors instead of attending cocktail parties. Also, saying that you are psychologically prepared for the axe to fall on your job is usually an understatement - because the feeling can be very different when it does.

•  The writer is founder/managing director/executive coach at NeXT Career Consulting Group, Asia

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