Five myths about Outplacement debunked
More and more companies are introducing Outplacement as part of the total package they offer their employees if they have to lay -off some of them. They see the many benefits this brings both them and their future as well as current staff. It shows respect and trust, increases loyalty, attracts the right talent, betters a company’s reputation and avoids costly lawsuits and lengthy severance pays if ways need to be parted. But there are still some misconceptions about Outplacement that avoid companies to consider offering the service. We thought it was time to debunk the top 5 most stubborn ones we hear a lot in our daily operations.
1. Outplacement is expensive and an option for big companies only.
Even though it’s mostly larger companies that consult Outplacement services, smaller companies benefit from it too. Taking care of those you need to let go, sends a strong message of goodwill to those staying on and keeps them motivated. It helps them understand that it was not an easy decision to make and that you truly care about your staff. And it avoids hard feelings with those you need to part ways with. Losing your job is tough, but sometimes it’s not so much the loss of the job, but the way it was handled that leaves a bitter aftertaste. Neither party wants things to end badly and go through lengthy and costly legal battles and both want to move on and deal with the situation correctly. Outplacement can help with precisely that. The real question for companies of all sizes could possibly even be if they can afford not to offer it.
2. Outplacement is about just finding a new job for people who were fired.
Even though the goal of a successful Outplacement process is to find a new job, the real challenge is the way there. Losing a job is stressful. In fact, research shows over and over again that it is in the top 5 most stressful moments in a person’s life. It takes mental strength and character to overcome this and to remain optimistic and self-assured.
Florian Roth, Managing Partner at Adrian & Roth / Kennedy Executive Search Munich: “First and foremost, Outplacement is enabling somebody for new career opportunities. It’s about the transition between losing a job and being ready to find a new one. Outplacement helps people overcome initial shock, shake off insecurities they might have and to help them focus on the future ahead”.
3. Offering Outplacement shows lack of commitment
Some say that talking about what is on offer when the working relationship should end, is a bit like prenuptials before a wedding. You appear to not be in it for the long haul and are already contemplating an easy way out without losing money. It’s the opposite. First of all, prenups often prevent one spouse helping the other one out after a divorce. Also, prenups are signed before the wedding where Outplacement is usually discussed only when the two part their ways. And other than prenups leaving the other with nothing more than before they entered the relationship, outplacement shows willingness to assist them to get back on their feet. By considering it when you need to let go of people, you show that you value the other so much that you want to make sure they have a bright future. In fact, research shows that Outplacement scores high on the list of employee benefits candidates find appealing. It helps attract and retain the best talent out there.
Miroslava Barčová, Managing Partner at Delta Consulting Group / Kennedy Executive Prague: “In the 2008 crisis, many companies were forced to let go many people. As they were not prepared and were going through rough times, they did not really offer any support to those out on the street. This backfired in terms of reputation and lengthy legal issue, but also left company officials feeling guilty and ashamed at how little they could offer. We really saw an increase in the demand for Outplacement after this. Companies really want to show commitment that way”.
4. Outplacement is only for entry-level employees or those that are inexperienced.
People with a bit of experience should be able to find a new job easily, right? If not, they lack confidence and were the wrong fit anyway, right? Wrong, very wrong in fact. People in the early stages of their career will possibly even be more prepared for what’s out there as they were there more recently. Mid-level and executive-level employees often got promoted within the company or are where they are on the merit of their experience. They might not even have an updated resume. To use a second marriage metaphor: for them, applying for a job and going to interviews can be as daunting as finding yourself newly single after a divorce. In fact, presenting yourself on LinkedIn is not that different from setting up a profile in a dating app. If you are new to the game, you will be happy to get the support of somebody who knows what to expect and how to prepare. Furthermore, executive-level employees tend to be more critical and need more time to search for a next position. They are used to a certain standard in living, with costs to match and will want to make sure the next step is a safe one. Outplacement can help them determine their goals better and faster.
5. Outplacement and recruitment don’t go together
Some people find it unethical if a recruitment firm also offers outplacement services. They feel that you can’t make money of a person twice. Furthermore, some feel that in recruitment, the focus is on satisfying the client, not on the candidate. But recruiters establish personal relationships with the candidates they present to their clients and might know them better than anyone else.
Jorg Stegemann, Owner at Apollo/ Kennedy Executive Search Paris: “We know exactly how the job market ticks, what the dos and the don’ts are and how to find and secure a job as we deal with hiring managers every single day in our working life. On the other hand, we coach, consult and consult candidates all the time. We talk about their professional ambitions and goals and bring them back to reality if these are unrealistic. They often confide in us with issues that exceed the scope of recruitment already anyway. Who better to help them get back on their feet after they lose their job? And who better knows what kind of profiles, behavior and approach works and which don’t. We do not ‘teach’ a theory, something that someone has written sometime. We share best practices, tips and tricks about the job market in the candidates’ home market today. Our advice works and is proven as nobody knows better than headhunters how to hunt not only heads but also jobs”.
Miroslava Barčová agrees: “In Czech Republic, if you are looking for Outplacement, you call a Recruitment- or Executive Search firm. The combination of the two is a given. For me it’s obvious actually. If anyone knows how to prepare for an interview and how to negotiate salaries and benefits, it’s us. This providing you are even invited for the interview. But we can help with that too. We receive thousands of resumes every year and know how CV’s are read and how some, if not most, aren’t. Furthermore, we establish long lasting relationships with our clients. We get to know them and their industry inside and out and hear about pending changes and shifts in requirements before anybody else. Our Outplacement clients benefit from this, as we can prepare them duly. Obviously, we need to make sure we don’t push candidates we offer outplacement to for a role just to make money. But a match is a match. If an outplacement candidate ticks all the boxes for an assignment from another client, it would be unethical not to introduce them”.
At Kennedy Executive Search, we love helping both candidates and clients meet their goals. We do so with a 360-degree approach that includes both executive search and consulting and anything in between. If you are interested in talking to us about how we can help you, please get in touch. We love to hear from you.