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Outplacement Industry - Some New Statistics
By Beth Kniss, Insala Consultant
Over the past five to 10 years, the outplacement industry has experienced the effects of "belt-tightening" by many companies. Shifting financial priorities for such companies coupled with commoditization within the outplacement industry seemingly have brought forth this period of economization.
» Are tides changing? Consider the statistics from the recent research study The Value of Outplacement:
- The number of individuals receiving outplacement support has increased by 50% over the past two years
- More than 50% of employers surveyed, reported that outplacement support had been offered for at least 85% of those separated from the organization
- Approximately 50% of employers surveyed utilize exclusively external outplacement providers
- 81% of employers surveyed utilize some help from external outplacement providers
» Why are companies providing outplacement support?
Beyond minimizing potential litigation from displaced employees, more and more companies are crediting outplacement with a wide array of other benefits. The Value of Outplacement study reported:
- 65% of employers believe that providing outplacement improves staff morale, motivation and productivity
- 78% of employers felt the provision of outplacement could improve the organisation's reputation
- 55% of employers believed outplacement could help it to be seen as an employer of choice
Another 2003 study of over 1,200 HR executives in North America found:
- 78% believe that outplacement consulting and career transition services improve the organizations' image, both internally and externally
- 72% said outplacement and career transition services help reduce litigation
» Is outplacement linked to retention?
Beyond improving staff morale, motivation and productivity, many employers further credit outplacement with increased employee retention. At first glance, this statement seems contradictory . . . how can services for terminated employees actually affect the "survivors?" Consider the following from The Value of Outplacement study:
- 55% of employers agreed that providing employment support for staff no longer needed, helped the organization retain those staff deemed necessary
- More than 70% of employers believe that offering outplacement helps line managers to shed staff with a clearer conscience, making their jobs easier
- 87% of those managers interviewed felt that it eased the pressure on them, making their jobs easier
The 2003 study of over 1,200 HR executives in North America found:
- 66% said outplacement reduces stress on managers implementing organizational changes, again, making their jobs easier
» What are the most valuable components of outplacement?
According to research from the The Value of Outplacement study, the 3 most highly rated components of outplacement support by employers are:
- Quality of one-to-one consultancy
- Interviews and assessment training
- CV/Resume development
» And what does the future hold?
The Reed Consulting study reported:
- 78% of employers surveyed felt the need for outplacement would increase or stay at the current levels for the coming year
- 22% of employers surveyed felt the need for outplacement would fall in the coming year
» A look back . . .
An in-depth historical compilation of research documenting the continuously evolving outplacement industry can be found in "A History of the Outplacement Industry 1960-1997 From Job Search Counseling to Career Management a New Curriculum of Adult Learning," by Martha A. Redstrom-Plourd.
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