How does outplacement work in 2024?

Outplacement is a system that helps an employee find a job in another company. The talent can count on the personalised follow-up, network and support of a coach to help them make a successful career transition. How does outplacement work? Find out in the article.

Definition of outplacement

Outplacement is a service designed to help people find a new job after they have suddenly lost their position: redundancy, contractual redundancy, voluntary redundancy scheme, etc.

This support is provided by a firm specialised in outplacement or in human resources. This service is also known as external reclassification or professional repositioning.

An outplacement consultant supports the talent until they take up their new position and helps them identify professional opportunities. The consultant follows the talent from the definition of his project to the action plan, and helps him move towards their future job by providing him with appropriate methods and tools. Another key factor in helping him bounce back is the fact that he can use his network to put him in touch with other professionals, company directors and recruiters.

Outplacement lasts at least several weeks, if not several months, to guide the candidate through the various phases of the job search. By reporting back at each meeting on the steps being taken, the person seeking a new position ensures that she is making a constant effort to achieve her goal.

In our Paris outplacement firm, the Networking Premium Group, we have designed a programme dedicated to executive outplacement: the Networking Business Package.

It is based on our unique expertise in networking and a network of accomplished and recognised business leaders. We invite the candidate to over 150 events a year to expend his network. We believe that networking is often under-exploited by working people, even though knowing the rules of networking is a real competitive advantage on the job market. That's why we've made it the cornerstone of our support. We share with our coachees the methods and secrets of networking, adopted and passed on over the last thirty years by the firm's founder, Alain Marty.

How does outplacement work: individual versus group outplacement?

Individual outplacement is offered to employees as part of a contractual redundancy scheme or individual redundancy. It can be negotiated by the departing candidate or offered by the employer if its HR policy encourages it. Originally intended for senior executives and managers leaving the company, it is now opening up to other positions within the company. Indeed, this professional repositioning represents considerable support for the candidate, who may be plagued by worries and doubts following the loss of his job.

Collective outplacement is a scheme put in place in the event of redundancies or as part of an Employment Protection Plan (EPS). In this case, the aim is to help the employees concerned get back to work as quickly as possible.

In both cases, the employee can benefit from an expert eye to help him define his career plan, whatever his background, and identify the key skills required by recruiters. Depending on what they know, they can review the do's and don'ts of job hunting: how to write a CV or covering letter properly, how to prepare for a job interview, how to contact peers, how to prepare for a networking event, and so on.

Why use an outplacement agency?

A person looking for a new job reaps many benefits from outplacement, but there are also many advantages for the company that sees her leave.

What are the benefits for employees?

Find a job quickly. For 4 out of 10 beneficiaries, individual outplacement leads to a new job in less than 6 months (1).
Know the tools involved in finding a job and learn how to connect with the right people. Relational networks remain the primary way of finding a new job(2).
Open up the field of possibilities: 77% of candidates decide to remain employees. However, 15% choose to carry out assignments on a freelance basis and 8% take advantage of this professional change to set up or take over a business (3).
Take advantage of this change to obtain a position with advantageous conditions. Just because you lose your job doesn't mean you have to lower your standards: 83%(4) of executives find a job that pays more (43%) or the same (40%).

=> You may also be interested in this article: Bouncing back from failure as an executive.

What are the benefits for the employer?

Reduce the risk of disagreement: an abrupt departure can lead to frustration. Offering an employee a support service tailored to his needs prevents him from tarnishing his employer's reputation or taking legal action against him.
Nurture your employer brand: this is an opportunity to show your employee that you care about his well-being, even if his contract is coming to an end.
Leave the door open to ‘boomerang employees’: this is a trend that is being talked about more and more, and refers to employees returning to an organisation they had previously left.

How much does a professional repositioning service cost?

In most cases, this service is paid for by the employer. Some firms offer rates based on a percentage of the gross annual remuneration of the employee about to leave the company.

However, the price of an outplacement varies widely, and there is a wide range of services on offer. First of all, we advise you to analyse the service as a whole: length of time and follow-up for the candidate, the firm's network, the coach's expertise, additional services to make it easier to find a new job.

=> You may also be interested in this article: How to choose an executive How to choose an executive outplacement firm?

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Source (1)(2)(3)(4) : https://syntec-conseil.fr/wp-content/uploads/2023/05/Syntec-Conseil_Synthese-Outplacement-individuel-cadres-2023.pdf