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Recruitment & Retention

Published February 2010

How to Select an Outplacement Service

  Nada Norval

The decision to downsize an organization and reduce existing staff can be difficult for those whose job it is to be an advocate for employees. Talent managers spend their time finding good people to work for their organizations, implementing systems to retain them and make them productive and nurturing cultures of acceptance and growth.

Companies offering career transition support to displaced employees have three objectives:

• To ease employee stress, for those displaced and those retained.
• To reduce the risk of negative action.
• To provide impacted employees with the best services available.

To find the right firm, it is important to identify how the provider will best represent an organization in meeting these objectives. The career transition firm selected will represent the company and is, in effect, an extension of what it wants to be.

Choosing the Right Partner

A variety of HR consulting firms specialize in outplacement services, ranging from large national companies that offer a wide range of services for all levels of employees to smaller local or regional firms that offer more customized approaches for transitioning employees. Firms offer a range of fees to accommodate the downsizing budgets of organizations and the skill levels of transitioning employees.

Here are some considerations for talent managers when selecting a firm to handle outplacement services for their company's specific needs.

• Interview two to four firms offering outplacement services. Check to see if they have capabilities to service employees living outside the immediate area.
• Be sure to actually visit the offices and facilities of the firms being considered. How many offices do they have for candidates to use? Is a variety of office services available? Is there sufficient support staff? How sophisticated are computer services? What is the quality of materials candidates will use in their job search?
• Does the firm offer group workshop sessions to get candidates started quickly in their searches? Is counseling done individually or is it always in a group session? Do counselors meet in person with the candidates or do they communicate only via phone and e-mail? One-on-one contact and support during this time period can be a critical factor in a displaced employee's future success.
• Does the firm offer a variety of price ranges based on the level of services rendered, or is it a one-size-fits-all fee schedule?
• Does the firm offer the services of a licensed psychologist or professionals certified in administering legitimate and recognized assessment tools?
• Look at the resumes the firm produces. Would you hire someone with that style of resume? Ask to see the materials the company provides on the basics of the job search process — resumes, cover letters, interviewing, networking. How does the company suggest candidates use the Internet for their job search? What sites do they recommend?
• Ask to talk with talent managers from other firms the company does business with. Get references and check them out. Ask for the contact information of candidates who have been placed by the firm. At least get evaluation forms they may have completed.
• Be wary of the low bidder: You may get what you pay for. Ex-employees who have had bad experiences with their outplacement services may not say so many nice things about their ex-employers either.
• Lastly, would you be comfortable with the outplacement firm, the counselors, the professionalism of the staff, the office décor and the tools given to help you in your job search? After all, your HR department could be affected by the latest downsizing.

What to Avoid When Selecting a Career Transition Firm

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