Is Outplacement Outdated?

WHAT IS OUTPLACEMENT?

Outplacement services are employer-sponsored programmes to laid off or redundant employees, usually arranged as part of their severance package. The programs typically provide career coaching, CV writing, interview training, and job search resources, helping gain new employment. The effects of the AI revolution are already being felt and, over the next two years, we will likely see an acceleration in the demand for outplacement services. But is it the most effective approach?

EXPERIENCING OUTPLACEMENT SERVICES

Typically delivered via third-party firms, the reality of outplacement for the departing employee is not the smiling faces depicted in the above photo. The true goal of these services is to protect the employer’s reputation and, to a lesser extent, reduce fear among remaining staff. I used an outplacement service after leaving a large corporation in 1993. I experienced notable limitations that left me feeling it is primarily window-dressing and provides little real benefit to the ex-employee. It certainly had no impact on my next position, which I gained by virtue of reputation and contacts, to which outplacement services are irrelevant.

LIMITATIONS OF OUTPLACEMENT SERVICES

For the employee, the most significant problem remains a lack of industry-specific knowledge or expertise, and an almost complete lack of useful industry contacts who could directly aid a leaver’s re-employment. The support on offer is too generic, outdated in its knowledge of the market, and involves very little real, helpful, coaching, or personal development, even within the limited available time. Too often, the focus is on ticking boxes for the employer rather than truly meeting the needs of individual staff. Furthermore, many departing employees are likely to experience long-lasting emotional issues, which are not addressed by typical outplacement offerings.

Benefits to employers are also limited: longer-term (ex-)employees will have formed friendships within the organisation they are departing, so mere window-dressing their departure fools none of the remaining employees. Company morale will therefore be affected, sometimes very negatively. In the increasingly AI-affected world where employees with relevant skills have enormous value, this effect could be disastrous.

There is so far very little evidence the Outplacement industry is adapting. Some claims are made about industry specialism, especially within the finance sector. However, that specialism is frequently outmoded or outdated and should be met with considerable scepticism.

IS THERE AN ALTERNATIVE TO OUTPLACEMENT?

Yes! OBH Solutions approach offers a novel alternative. We directly employ non-core or surplus staff, and actively seek to place them within our own or our customers’ or partners’ businesses, often as part of an outsourcing agreement with the employer. This allows the current employing organisation to sever their ties with an individual over time, and likely retain remaining employees, often inside a new structure. Occasionally, it may even be possible to retain the departing employee in a different role, outsourced via our business.

Instead of simply equipping departing employees with job-seeking resources of questionable use, OBH absorbs the staff into its own employment framework, managing HR, payroll, training, and any required operational oversight, while allocating these employees in the interim to support clients’ non-core operations or after-hours workloads. We presently restrict our services to those companies seeking to recalibrate their staff who operate outside of normal business hours – typically overnight, weekends and bank holidays. However, we are always willing to discuss your requirements.

BENEFITS OF OUR ALTERNATIVE ARE MANY

This method is particularly effective for businesses facing recurring operational challenges, such as after-hours coverage, holiday peaks, or project-based surges, where retaining knowledge and experience in a flexible, non-core context is valuable. For example, OBH’s model enables organisations to continue benefiting from the skills and institutional knowledge of staff no longer needed in core roles by redeploying them into critical support positions managed externally, keeping learning lags to a minimum.

Another key benefit of the OBH model is the significant reduction in management overhead for the original employer; OBH takes on all HR responsibilities, compliance, day-to-day management, escalation, and training, freeing up core management to focus on strategic activities. This contrasts sharply with traditional outplacement, which leaves responsibility with the employer, rather than with the supporting provider.

Additionally, OBH employs staff as dedicated, rather than shared, resources, ensuring continuity, accountability, and a sense of belonging - employees aren’t shuffled through a roster of casual or agency positions but remain with one team, maintaining loyalty and engagement. This structure enables smoother transitions for both the employees and the companies, reducing the stress and disruption often associated with redundancies or contract terminations.

By providing structured onboarding, ongoing support, and incident management, OBH maintains high service levels and ensures that knowledge and processes are retained and refined, rather than lost as would happen with standard employee exits. Escalation procedures and reporting are streamlined, with OBH delivering business-critical information and analysis back to the original employer, further enhancing the value of the arrangement.

In summary, the OBH Solutions method of employing non-core or surplus staff provides a comprehensive, operationally integrated, and humane alternative to traditional outplacement services, facilitating seamless staff redeployment with tangible benefits for both the employer and employee. This creates a win-win outcome serving the wellbeing of staff, the operational integrity of the business, and the overall employer brand - areas where outplacement, by its nature, often falls short. This may prove especially important if the anticipated wave of AI-related restructuring occurs as quickly as forecast.