Even though we are still experiencing a ten-year economic expansion, and unemployment is at record lows, there are still layoffs taking place due to mergers, acquisitions, restructurings, and terminations.
In many of these situations, outplacement and career transition services are provided to the downsized employees to help them get quickly reemployed.
There is a good chance that many of the rising HR leaders today have not had to be involved with a painful downsizing or layoff.
This blog will serve as a guideline on what outplacement programs should cost. We hope that it will become a helpful tool when firms have to plan and budget for an upcoming layoff.
Before we get to costs, some factors have to be considered before determining the cost of the program.
Level and Seniority Of The Employees
The levels and seniority of the employees impacted matters because senior-level employees (Director level and above) require more time and attention to get re-employed. At CMP, we have managed the careers of thousands of outplacement candidates and have seen that the more senior the candidate – the more time it will take to find her ideal opportunity. This timing is mainly due to there being fewer job opportunities as you move up the career pyramid.
How does this impact the cost of the program? More consulting hours are needed to help the more senior-level candidates. The resume, LinkedIn profile, and networking coaching are more intensive. The interview preparation and the offer negotiation are also more involved than what you will see with a mid-level manager or individual contributor.
Commitment To Employee Brand
Outplacement programs can range from:
- Self-serve programs where every candidate gets access to a career portal and no in-person consulting is provided.
- Limited service programs where candidates have full career portal access and also receive a set number of hours where they can work with a career consultant. These programs are great for fast-track engagements, where candidates do not need much help to be market-ready.
- Full-service programs where candidates receive more career consulting hours (a blended delivery of in-person and virtual), personality assessments, and video training on interviewing. These programs are very effective in helping to speed up the time to re-employment but they are also time-intensive and therefore cost more.
All of these programs will be a reflection of the employee experience as they exit the organization. Organizations closely look at the candidate experience when they are recruiting and onboarding employees. They know that this attention plays an integral part in how their employees and future candidates see their employer brand.
Showing the same level of care to outgoing employees will make a big difference. It will show the departing employees that the firm, while having to make the hard decision to lay them off, made the right call in providing them with services to get their feet back on the ground. Providing outplacement will also show all of the remaining employees that the company treated their friends and co-workers with respect and dignity.
Here is an easy to reference guide to help you plan for your outplacement program.
* The costs are estimates and will vary based upon the specific elements for each program. They can also vary based on geography.
I hope that this blog and outplacement pricing guide will help you better plan for any future downsizing engagements that you have planned. Also, here is a helpful guide that will teach you everything that you need to know about outplacement – from planning to execution.