A survey taken at a recent TVHRA meeting indicated that a small, but significant number of members expected their organizations to be laying-off employees during the next 90 days. Whether due to the "dot-com debacle" or other business trends, such reductions-in-force can be extremely disruptive both to the affected employees and to their former employers. Retaining the work force that remains, especially key employees, can be even more challenging.

Fortunately, there is hope. Many enlightened employers are offering displaced workers a valuable new benefit at a time when they need it most. Outplacement, once reserved for high-level managers and executives, is increasingly being offered to less senior employees. As a result, firms in this fast-growing industry are tailoring their programs to meet the needs of employees at all levels. By offering flexible programs, most firms can meet a company's budget constraints even in times of "downsizing," when financial resources may be extremely limited.

According to the National Career Development Association, the outplacement industry has grown at a rate of more than 15% per year to become a $1+ billion industry. There is a reason for that.

By offering career transition assistance to individual employees or to groups affected by terminations or layoffs, the trauma of job terminations can be minimized. Management can avoid costly legal disputes by obtaining a general release from employees as a condition of providing the benefit. Defending against even a frivolous challenge through legal or administrative channels generally would cost far more than providing outplacement itself. In fact, the cost of providing outplacement services generally represents a small percentage of the total costs associated with a major "downsizing" or even the termination of one senior manager or executive.

"You Can Go Your Own Way"

Management is, therefore, free to redesign its workforce and pursue its objectives in the light of changing business circumstances, relatively unencumbered. The affected employees receive what amounts to "career insurance" and can be reasonably confident of their ability to pursue new career opportunities without suffering any harm, financially, professionally or emotionally.

"Survivor Syndrome"

For those remaining employed there is a "Survivor Syndrome" that makes them wonder, "Might I be next?" If they know they will provided with outplacement assistance should that be the case, defections of key employees can be minimized. Retaining the best of the remaining work force can be critical to a company forced to "downsize" due to business conditions, a merger or an acquisition. When job security is threatened, it is often the most valuable remaining employees who are the first to seek and obtain more promising opportunities elsewhere — often with a competitor.

"What It Is"

A typical outplacement program generally includes career counseling, training in job search skills, résumé preparation, help with cover letters, and advice on or direct assistance with where and how to look for a job. Sometimes, such as in the case of a major "downsizing," at least a portion of these elements are provided to small groups of affected employees. In such situations, the mutual support offered by the group members to one another can itself be beneficial. For more senior-level managers and executives, individualized services are more beneficial and may include actual career campaign marketing assistance.

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According to Challenger, Gray and Christmas, Inc., a leading outplacement services firm, the average time taken to secure a new position is cut almost in half to 3.2 months with outplacement, as compared to five to six months without. Also, 90% of outplacement recipients attain positions equal to or better than their previous employment. By shortening the time it takes to obtain a new position, careers are not disrupted and can actually benefit from the outplacement experience. By minimizing the costs associated with "downsizing" and aiding in the retention of key employees, businesses stand a better chance of achieving their performance goals. Outplacement is truly a "mutually beneficial benefit."