History

• According to the Encyclopedia of Business, outplacement pioneer James E. Challenger called on corporations to help assist displaced workers beginning in the 1960s. Outplacement developed further during an economic downturn in the 1980s, which featured a rash of management-level layoffs. Outplacement has since become a leading professional service, following the ups and downs of the U.S. economy. In March 2010, Outplacing.com, an outplacement firm based in Phoenix, Arizona, noted that outplacement services had increased in popularity with the economic downturn of the late 2000s.
  
  

Significance

• According to an outplacement study conducted by Reed Consulting, outplacement services help maintain an employer's reputation and improve staff retention. Employees who know their company has their best interest in mind are more likely to be loyal. Outplacement services help focus terminated employees on their new career, while discouraging thoughts of legal action or sabotage.
  
  

Features

• Companies generally offer outplacement services through contracts with outside vendors. Services typically include resume preparation, career counseling, career fairs and interview coaching. Some outplacement firms provide clients with office space to perform job searches, along with the use of an assistant. Companies such as Navigator Institute offer online outplacement services, which give terminated employees 24/7 access to networking tools and coaching sessions.
  
  

Considerations

• According to the Encyclopedia of Business, outplacement services have mixed reviews. Satisfaction often depends on the employee's attitude and initiative. While some clients are willing to embrace a career change, others feel the service is no better than hunting for a job on your own. Outplacement is considered a support service, as opposed to an employment service. An employee's ambition plays a large part in the success of outplacement.
  
  

Outplacement Tips

• Employees may receive more one-on-one attention when companies contract with smaller, more specialized outplacement firms. According to the Society of Human Resource Management, it's important for companies to provide not only job-search support, but also "onboarding" services. Onboarding is the process of helping employees adapt to their new career, which greatly improves the probability of their success.