In a development process, a market economy is characterized by ups and crises. In any conditions, the leading companies of the countries are trying to maintain their position and competitiveness. To do this, following the strategic conduct of business, they are restructuring, merging or closing departments and branches, which is accompanied by the release of employees. How to make sure that parting with them was conflict-free and had no negative consequences? For this, many companies use outplacement.
Technology History
This type of service originated in Western countries in the 70s of the last century. This was due to the fact that trade unions demanded social responsibility from companies for the dismissal of employees. Outplacement services contributed to job placement, while the government no longer needed to pay unemployment benefits. That is why this technology has become one of the components of the business of any self-respecting company.
In Russia, it began to be used during the crisis in the late 90s. Initially, outplacement was initiated by holdings of foreign origin, and later this trend was also adopted by large domestic enterprises.
Today, interest in this type of service is constantly growing. More and more corporations are guided by the western approach to employees, that is, they are directing their efforts not only to business development, but also to maintaining a positive image of the company.
The relevance of outplacement
The main factor that a person encounters when dismissing from his post is the unexpected termination of work, and, therefore, the unwillingness to further search for work. In addition, the dismissal for any specialist is a stressful situation, especially if a person has worked in one place for a long time. During this period, as a rule, the situation on the labor market changes dramatically and therefore many of the laid-off employees are unable to look for work, they cannot professionally prepare materials on professional activities, present their candidacy for an interview and endure with dignity a probationary period. Outplacement as a mechanism to support the dismissal of employees makes it possible to increase a person’s motivation, develop a clear strategy for finding the desired position and, accordingly, find a job.
Interpretation of the concept
This term, as well as the type of service, appeared not so long ago. However, it does not have an unambiguous definition.
Translated from English (out - out, placement - appointment) outplacement
- this is the direction of recruiting, which provides for the provision of services for personnel to be released on certain conditions. In other words, this is a series of events that the company conducts for a laid-off employee in order to assist in finding employment. These services are provided either by the company itself through its personnel, or by an engaged company. This technology is used when the dismissal is a consequence of the reorganization of the enterprise and does not depend on the desire of specialists. Employment of a dismissed person of his own free will is a problem for the employee himself.
In Russia, outplacement as a type of HR consulting is used by respectable corporations in relation to employees of various levels: from leading managers to ordinary workers. The difference in this lies in the approaches to the services provided and in the amount of financing. So, for example, for high-ranking officials, employment assistance may include: payment for participation in trainings, provision of personal recommendations, psychological support during job search and process control, and only consultations on employment can be offered for lower-level personnel. But for both categories, the analysis of remuneration in these positions is mandatory to demand a decent remuneration for the performance of their functional duties.
Outplacement Functions
For these services, the customer, as a rule, turns to a recruiting company or a recruiting agency. In the labor market, their work is in demand because of the importance of the functions performed for the development of the business, namely:
- creation of a base of enterprises and companies, relevant vacancies;
- entering data of the dismissed employees into the file cabinet and providing information communication between employers and job seekers;
- social function (reducing unemployment).
These companies specialize in providing this type of service, so their activities, as a rule, bring positive results.
Services for a laid-off employee
Outplacement is a work aimed primarily at helping an employee who is subject to reduction. Depending on education, qualifications and length of service, he may be offered:
1. Information on the state of the labor market.
2. Checking the level of professional competence.
3. Help with resume writing.
4. Development of skills for writing a cover letter.
5. Definition of a new job squealing strategy with an employee.
6. Training in self-presentation methods at a job interview.
In addition, outplacement includes consulting services of attracted companies: consultations of managers, top managers on loyal dismissal and employment of employees, analysis of the staffing of the enterprise and assistance in developing a business strategy as a whole. This type of information support is provided at the request of the customer, but without it it is not always possible to get high results in a short time.
Types of assistance provided
Only very large companies can afford using technology during the year. On average, employees find work in less than half of this period. In any case, outplacement services in most situations provide employment for the personnel to be released.
The following types of service packages are allocated to an employee depending on the volume and type of assistance:
1. Information (includes the preparation of letters of recommendation, informing about legal guarantees for dismissal and employment, compiling a list of recruitment agencies and companies with vacancies).
2. Consulting (provides for the provision of data on the state of the labor market, training in finding vacancies, practicing behavior in interviews, and also advising on the labor code of the Russian Federation).
3. Psychological (employee support in overcoming stress).
4. Technical - provision of technical means (computer, printer, fax) for sending resumes to potential employers.
Outplacement Stages
Basically, assisting laid-off employees takes place in the following sequence:
1. Analysis of the professional activities of the employee.
2. Development of a job project.
3. Search for suitable vacancies.
4. Staff training.
5. Support for employment.
6. Control by the company or recruiting agency.
Service Classification
According to the object of service provision, there are 2 types of outplacement: internal and external.In the first case, the company itself provides assistance to the employee, in the second, the involved agency deals with this.
By type of assistance, open and closed outplacement is used. When open, employees are directly informed of the dismissal and offers their help with employment.
Closed dismissal applies to high-level employees or "objectionable" companies. At the same time, the employee is completely ignorant of the fact that he is being reduced, or his working methods are not satisfied with the management, as a result of which they decided to leave him. For this, the recruitment agency finds companies that need the services of this specialist. Thus, the "objectionable" employee receives a favorable offer and accepts it with pleasure. In fact, the company is simply getting rid of it veiled. In this situation, everyone is satisfied: the dismissed person moves to a new place of work, and the customer is calm about maintaining trade secrets. It should be noted that when drawing up a contract with a company involved, a list of competitors is specified, which is excluded from the list of potential employers.
According to the number of employees covered, there are:
- mass;
- group;
- individual outplacement.
It is this factor that significantly affects the choice of services provided and their cost.
Benefits of Using Technology
The main goal of this type of service is to maintain the image of the company in the eyes of employees and the public. In addition, outplacement allows you to avoid litigation due to the reduction and payment of social benefits, to ensure the preservation of trade secrets by employees and loyalty to the company. Using "soft dismissal", the company has the opportunity to further turn to the former subordinate if necessary to provide assistance, and, of course, reduces the level of stress in a person looking for work.
Payment of outplacement
Depending on the qualification of the employee and the level of his competence, as well as on the amount of staff being reduced, the cost of services varies. So, for leading experts and top managers allocated from 10 to 15% of their annual income. For ordinary employees, the amount spent is usually half as much, and usually fixed for one person. Often, it is prescribed in the terms of an agreement with a recruiting company.
Basically, the customer’s expenses depend on the posts and the number of employees being cut, as well as on the package of services provided.
Despite the fact that this technology is a rare phenomenon in the domestic market economy, it is steadily gaining momentum in the activities of employers, as any self-respecting company develops a long-term business strategy. Outplacement is an opportunity to maintain the loyalty of employees, to gain their support even after dismissal, and, of course, to ensure a positive image of the company in the labor market.