Outplacement is a process of facilitating a terminated employee’s search for a new job by providing professional services, counselling, paid for by the former employer.
It is done generally done by a downsizing company which pays for the services of a third-party company to assist their laid-off employee to seek new employment.
The assistance provided maybe in the form of resume writing, salary negotiation advice, resume distribution to employment agencies and head hunters, cover letter writing and career counselling.
As per Wikipedia , Outplacement is explained as
Outplacement is the support service provided by responsible organizations, keen to support individuals who are exiting the business (voluntarily or involuntarily) – to help former employees transition to new jobs and help them re-orient themselves in the job market.A consultancy firm usually provides the outplacement services which are paid for by the former employer and are achieved usually through practical advice, training materials and workshops. Some companies may offer psychological support.
Outplacement is either delivered through individual one-on-one sessions or in a group format. Topics include career guidance, career evaluation, job search skills, targeting the job market, resume writing, interview preparation, developing networks, and negotiation.
Consultants support individuals seeking a new job, and also those looking to start a new business, retire, or structure a portfolio of activities. Programs have time limits, ranging from a few months to more extended periods, such as 12 months and are offered at all levels of the organization, from workers to corporate employees.
Outplacement provides former employees structure and guidance towards their new career option, and preserves the morale of those who remain in the Company who see that colleagues are given the necessary support when they leave the company.
History of Outplacement
The term outplacement was coined more than 30 years ago by the founder of Challenger, Gray & Christmas, a Chicago-based career consultancy.
With the increased rates of downsizing, rightsizing, redundancies and layoffs, particularly during the 1980s and 1990s,businesses increasingly found a need for some form of assistance in reducing the trauma of redundancy for both departing employees and those who remain. Indeed, research shows that losing one’s job is one of the most stressful experiences a person can face other than death and divorce.