Outplacement Industry Forecast 2nd Half 2009

June 24, 2009
In November 2008 we prepared an in-depth research review of the outplacement market resulting in The Insala Outplacement Industry Forecast for 2009. As this research was well received, and world economies are continuing to struggle, we are providing an updated Outplacement Industry Forecast – 2nd Half 2009. Read on to access the most recent, aggregated data on:
  • Continued outplacement industry growth – dramatic statistics
  • Outplacement – increasingly a standard offering; seen as adding value
  • Updated layoff projections and workers’ fears of job loss
  • Which employees are most affected by layoffs and who receives outplacement
  • Powerful technology solutions
OUTPLACEMENT INDUSTRY BOOMING

The outplacement industry is continuing to see monumental growth. Below is a listing of outplacement providers reporting significant increases in business:
  • 100% increase in outplacement business this past year (Career Momentum Inc, Madison, WI)
  • 75% increase in career transition work in 2008 (Ayers Group, New York City, NY)
  • 72% increase in users of online outplacement program during 1st quarter 2009 (Insala, Dallas, TX)
  • 65% rise in outplacement revenue since the start of 2009 (Adecco, Switzerland)
  • 50% increase in business across the outplacement industry (Drake Beam Morin, New York, NY)
  • 39% increase in profit during fall 2008 (Right Management , Philadelphia, PA)
  • 35% increase in demand for outplacement, without advertising the service (Hartley People, Waterford, Ireland)
OUTPLACEMENT – INCREASINGLY BECOMING A STANDARD OFFERING

Companies have adopted outplacement as a standard benefit in their severance packages as reported by two prominent surveys:OUTPLACEMENT – SEEN AS VALUE-ADDING

It is no wonder outplacement has become a standard offering. It has been credited with improvements in employee morale, motivation, productivity, retention, and employer reputation as reported below:MORE LAYOFFS/REDUNDANCIES LOOMING

Many companies worldwide are continuing to project layoffs:WORKERS ALL OVER THE WORLD FEAR JOB LOSS

The dramatic research below, from 5 different surveys conducted in the past year, shows the percentages of workers in various countries who are concerned about losing their jobs. With the projected layoffs reported above, it is no wonder.
  • 55% of Russians (Synovate Global Survey, yearend 2008)
  • 42% of Brazilians (Synovate Global Survey, yearend 2008)
  • 39% of Bulgarians (Synovate Global Survey, yearend 2008)
  • 69% of Americans (Addeco USA, Workplace Insights Survey, yearend 2008)
  • 51% of British (Career Energy, U.K., February 2009)
  • 65% of Middle Easterners (Job Situation in Recession, Bayt.com, April 2009)
  • 23% of Canadians (Workplace Blues Survey, Harris-Decima/Everest College, yearend 2008)
WHICH EMPLOYEES ARE MOST AFFECTED BY LAYOFFS/REDUNDANCIES?

According to recent research, women and people over 50 seem to be most affected by the recent waves of layoffs:WHICH EMPLOYEES RECEIVE OUTPLACEMENT SERVICES?

With more and more companies offering outplacement to their exiting employees, the services vary depending on the employee’s organizational level as show by the research below:Lee Hecht Harrison’s 2008-2009 Severance & Separation Practices Benchmark Study reported the following:
  • 67% of companies offer outplacement services to all officers and executives
  • 65% of companies offer outplacement services to all executives
  • 55% of companies offer outplacement services to all exempt employees
MARKET DEMANDING CHANGES IN OUTPLACEMENT SERVICE DELIVERY

As more companies offer outplacement services to their employees, the size and shape of those services are changing. As outplacement has become a necessary cost of “doing good business,” companies are looking for cheaper ways to access the service. Below are some general trends:
  • Shorter program lengths
  • Virtual programs - decreasing need for physical office space
  • Increased use of technology – career transition technology portals
  • Personalized Transition– Employees and companies have been pushing for “non-cookie-cutter” support. New service models are evolving which share the following characteristics:
    1. A move toward equal partnerships between former employees and employers
    2. Socially responsible and compassionate behavior
    3. Greater choices when it comes to outplacement delivery methods, including increased use of technology
    4. More emphasis on personalized one-on-one career guidance
    5. Access to tools to develop critical skills
    6. Special content matched to careers
    7. Tailoring services to employees in areas that matter most to them
    8. Increased accountability – employees want to remain continuously connected until successful outcomes are reached
POWERFUL OUTPLACEMENT SOLUTIONS TO INCREASE YOUR BUSINESS

The research is clear – the opportunities are increasing for outplacement providers. The critical factors converging to create this climate of growth are:
  • Massive layoffs continue to be projected
  • Outplacement becoming a standard company offering
  • Outplacement seen as adding value for the money
The outplacement firms which stand to gain the most will be the ones that adjust to the changing demands in the market. Personalized transition support coupled with technology tools will be key.

Do you currently have these components solidly in place? Are they available in an easily accessible and efficient manner, enabling you to increase the amount of business you can handle? Are you poised to quickly take on more clients? If not, consider boosting your services with Insala’s cost-effective, easily accessible online career transition program, EmploymentTalk™ that provides numerous resources to help support employees in transition. It successfully provides the majority of components employers are looking for, including world class assessment instruments, a powerful automated tool for CV/Resume development, and excellent content on interview skills, resume development and more – all accessible 24/7 in a secure and confidential environment.

And, along with the growth underway in the outplacement industry, we have experienced a 72% increase in new users of our EmploymentTalk™ outplacement software in the first quarter of 2009 (for further information, read the press release). If you currently don’t have online services, or the ones you have aren’t meeting your needs, request a live demo to learn more.

Also, please take a moment to complete our brief outplacement survey. We appreciate your responses, as they are extremely valuable for our research.

Learn more about Insala's
Free Webinars

Watch Webinars