Despite the apparent simplicity of this statement, many people are confused about what outplacement services are and why they cost so much money. The definition of outplacement is rather easy to understand. It is a service that helps laid off employees transition into new jobs by providing them with support, advice, tools, and techniques to make their job search more positive and effective.
Outplacement can be defined as a paid service that acts as a safety net for employees who lose their jobs due to downsizing, restructuring, or firing. The outplacement industry began in the U.S. after the North American Free Trade Agreement (NAFTA) was signed into law by President Clinton in 1993. Since then, the popularity of outplacement services has expanded into other countries.
Many people are unsure why they should pay for an outplacement service when they can receive similar support through their local unemployment agency. Unemployment agencies offer several valuable resources to laid off employees that are unable to be duplicated by any type of paid service. These resources include the following:
The unemployment agency also gives laid off employees exclusive access to numerous online resources. These resources include career exploration tools, discussion forums for professionals who are currently seeking jobs, and workshops on other vital topics that can improve a person’s resume and skill set. Another major benefit of using an unemployment agency is that many of these services are free of charge.
Although outplacement services do provide some support that the unemployment agency cannot replace, it is important for potential clients to understand why paying for the service is a better option than using the unemployment agency. The purpose of an outplacement company is to help employees find new and better jobs faster and with less stress. These benefits are realized through three major areas that outplacement companies focus on:
The first benefit is a direct result of the fact that an experienced outplacement company will have a list of jobs and hiring managers to contact. Although many unemployment agencies maintain lists of potential employers, their contacts are basic and do not have any special influence over the hiring manager. Outplacement companies also use strategies and skills that are exclusive to their industry, which helps them secure interviews for clients faster.
The second benefit of using outplacement services is the ability to receive advice from an experienced professional who can suggest improvements to a client’s resume, LinkedIn profile, tactics at job fairs, and follow up techniques. This advantage is especially useful for those who have been out of the workforce for an extended period and do not know how to market their skill set in today’s job market.
The third benefit is that outplacement services can provide career assessment tools, mock interviews with professionals in the same industry, coaching sessions on how to impress potential hiring managers, resume critique sessions, and a wider variety of workshops to choose from.
The benefits of using the services provided at an outplacement company have been proven time and again by countless clients who have used these services. In addition, many people believe that spending money on job searching training is a better choice than paying for anything else that does not directly help them gain employment.