Evaluating Outplacement Services For Groups, Managers And Executives

For most companies, the realities of doing business in a rapidly changing marketplace have resulted in significant shifts in the way companies organize and deliver their products and services. In the never ending search for quality enhancement and cost-containment, organizational change, restructuring and "downsizing" have become commonplace occurrences. During the past two decades, the use of outplacement services has become a standard method of coping with the human effects of corporate layoffs.

The old social contract of job security in exchange for lifetime employment has been replaced by "the new rules of the game." The employment contract of the 90s and beyond reflects a relationship based on mutual need and interest. The company has the responsibility to provide a challenging work environment in exchange for the employee's commitment to bring value to the process. As long as each party meets the criteria, the contract will continue. However, at the point in time when either party fails to fulfill their side of the contract, or business needs change, the relationship will be severed.

Today, the prospect of changing companies eight to twelve times and careers three to five times in a working life is a reality. The combination of corporate downsizing and personal responsibility for career management has given rise to an industry of career consultants and outplacement counselors with vastly different approaches, resources, and tiers of professionalism.

As the tide of massive cuts has ebbed and been replaced by more surgical trimming of the workforce, questions have been raised by many in the financial circles of organizations about the cost of outplacement services. "What exactly does the company get for its outplacement expenditure?" And further, "Are there any good reasons for us to continue the practice?"

The responsibility for addressing these questions appropriately falls most often to the top human resources executive. Most are able to articulate the standard litany of benefits such as minimized legal liability, reduced unemployment costs, increased public relations value and the positive impact that such services have on remaining workers. The oddity of the situation, though, is the fact that the person who pays for the service is not the same person who receives the service. This disconnect has focused the issue on questions of value and costs.

The following set of criteria provides a yardstick to measure the relative service, cost and effectiveness of your outplacement provider:

Questions About Professional Staff

• What are the credentials and formal preparation of the professional staff?
• Does the consultant have business experience? Has the consultant had firsthand experience with a career transition?
• Can you meet the consultants who will be providing the service? Do they live in your community or reside in another city?
• Are the consultants employees of the firm or are they independent contractors?

Questions About the Program Resources & Methodology

• Does the firm have experience in the broader areas of change management? Of course, the outplacement piece is merely the final step of the change process.
• How many hours of individual and group consultation will each participant receive?
• Does the program include analysis and evaluation of each participant's skills and inventory, assessment of career options, and assistance with positioning?
• Who prepares the creative materials, the participant or the consultant? Are the materials customized to fit the specific career goals of the participant?
• What resources are available through the consultant? Are participants provided with research data on target industries, companies, and emerging employment opportunities?
• Does each participant receive coaching, interviewing, negotiation, and presentation skills tailored to their individual needs?
• Do participants have access to the consultant following interviews to refine interviewing skills?
• What is the length of time that participants can use the consulting service? What happens to those individuals who have ongoing difficulty in making a transition?
• Is the consultant held to any level of accountability for ensuring the successful transition of all participants?
• And finally, will the consultant be an effective employee relations advocate for the company? Will the company's image be enhanced by selecting the best service for their outplaced employees?

Whether selected by the company or open to selection by the individual employee, the Human Resources department has the responsibility to exercise due diligence in the evaluation of outplacement providers. As business executives, they should apply the same economic criteria and acid test of value for service as other business decisions made by the organization.

Michelle N. Hurteau is the President of Moore & Associates, a Pacific Northwest organizational consulting firm that helps corporate leaders deal with issues of change and transition. Specialties include organizational development, change management, executive coaching & retreats, leadership development, human resources consulting, process adaptation to new technology, and outplacement/career management.

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