Outplacement

Outplacement involves providing support to employees who lose their jobs due to major restructuring or the elimination of individual positions. This system is also legally defined as monitored redundancies. According to Article 70 of the Act of 20 April 2004 on employment promotion and labour market institutions, in the event of at least 50 employees being dismissed over a 3-month period, the employer must offer those being made redundant a support programme covering job placement, career counselling, and training, which is implemented by the district labour office, an employment agency, or a training institution.

What is outplacement?

Companies currently decide on outplacement activities not only in situations required by law. Caring for employer branding, they develop a gentle redundancy system even for employees dismissed individually. It can include many different elements, from basic career counselling, interview preparation, CV and cover letter creation, to comprehensive training related to skill acquisition, as well as assistance in finding new employment opportunities.

What are the types of outplacement?

Depending on the company's level of involvement, the nature of the redundancies, and employees' needs, several types of outplacement can be distinguished:

• Internal and external outplacement – depending on whether the programme is run by the HR department, or an external training company, employment agency, or district labour office.
• Individual and group outplacement – depending on whether single employees leaving the company are supported, or a larger group being made redundant due to restructuring.
• Goal-oriented and process-oriented outplacement – depending on whether the organisation decides to help the employee find a new job, or only offers support in acquiring the necessary skills to do so.
• Full, cafeteria, and just-in-time outplacement – depending on whether the employee goes through the entire programme, selects only the support scope of interest from a wide range of assistance options, or contacts for specific advice.
• Market, entrepreneurial, and retirement outplacement – depending on whether the departing employee wants to find a new full-time job, start their own business, or retire.

What are the advantages of outplacement?

Care for employer branding and reputation in the eyes of potential employees is not the only reason why employers are paying increasing attention to outplacement programmes. Among the potential benefits and advantages, one can additionally list:

• Care for the company's image – an employer who cares for their employees even during redundancies will be positively perceived by clients and business partners.
• Increased employee morale – employees who remain with the company feel less fear of redundancy, which means no decline in work engagement.
• Maintaining loyalty to the organisation – those made redundant feel much warmer towards their former employer, so they do not share its weaknesses and continue to recommend the former company as a place of employment or a shopping/service destination.
• Reduced risk of litigation – employees do not feel entirely unfairly treated, thus they are less inclined to file lawsuits and claims.

Does outplacement have disadvantages?

Although outplacement is a positive HR practice, it also carries certain risks. Among the disadvantages of gentle redundancies from the company's perspective, one should mention:

• Costs – if redundancies are related to financial cuts, additional outplacement activities may reduce the scale of savings.
• Lack of customisation to individual needs – in the case of larger redundancies, personalised support is difficult to provide.
• No guarantee of success – employees' expectations for post-redundancy support are not always met, which can lead to additional frustration.
• Conflicts of interest – supporting a departing employee may ultimately end up supporting a competitor.

To avoid dissatisfaction with monitored redundancies on both sides, it is worth defining its goals and principles before implementing outplacement. If the employer does not have the resources for comprehensive support and can only afford to provide employees with process-supporting training rather than goal-oriented training, this should be clearly communicated.

What does an example outplacement procedure look like?

Ideally, it is possible to provide the redundant employee with full support in finding a new job. The best example of a soft landing when it's necessary to leave is the opportunity to use professional assistance at every stage of this process. A good procedure might look like this:

1. Initial consultation – meeting with the employee being made redundant to explain the procedure and discuss support options.
2. Psychological support – conversation with a psychologist or therapist specialising in supporting individuals undergoing the difficult process of job loss and seeking new employment.
3. Skills assessment – detailed analysis of the employee's skills, experience, and interests.
4. Action plan creation – based on the employee's needs, an action plan is created to result in finding a new job.
5. Job offer analysis – independent or assisted evaluation of available job market proposals.
6. Skills development – the employee undergoes company-provided courses or training needed to acquire specific skills or competencies.
7. Document preparation – a professional provides assistance in preparing CVs, cover letters, and other documents required during the recruitment process.
8. Recruitment training – the employee undergoes training sessions in controlled conditions regarding interviews, tests, and other aspects of the recruitment process.

Of course, an employee will not need support at each of these steps. However, it is important to offer it and provide it in those areas where they truly need it.