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2008 Outplacement Survey Results

HDA is a Human capital consultancy with experience in outplacement at all levels (across the UK and internationally) for almost 30 years; developing a reputation for a strong outcomes-focused approach. As part of our sustained commitment to refining and developing our services and capabilities, we recently undertook a detailed survey, incorporating views from across a broad sector base, to measure opinions surrounding outplacement.

This brief report outlines the findings of the 2008 HDA Outplacement Survey, providing further insight into current trends in the area; and the benefits of outplacement support, both for the business and the individual.

Headlines and major trends…

• Of those organisations that have experienced a restructuring in the last 12 months, the majority (81%) offered outplacement support to employees.
• Over 75% of those offering outplacement support offer different programme structures depending on the employee's level within the organisation.
• 100% of respondents believe that 'Outplacement support enhances the ease with which changes are implemented and accepted'
• Nearly 60% of respondents offer outplacement support to provide employees with the best possible chance of securing a new role
• According to 86% of respondents outplacement support provides value for money
• On average, the most important consideration for organisations choosing an outplacement provider are consultant experience; innovative, flexible programmes; and excellent client feedback and testimonials.

Key Demographics:

Industries:
Responding organisations came from various industries, including: Insurance, Professional Services, Manufacturing, Construction, Financial Services, Retail and Engineering.

Organisation Size:
Responding organisations ranged in size from over 100 employees to over 50,000 employees. The largest number of responses came from those organisations with between 100 and 500 employees.

Locations:
Over half of the organisations that responded have Global or International offices. Nearly 30% of responding organisations have offices in Southern England alone, while 14% have offices both in the North and South of the Country.

The Use of Outplacement Support:

Over 85% of organisations surveyed have experienced a restructuring in the last year and of those over 80% offered outplacement support to employees whose roles were affected.

When organisations were asked, if in the future they were forced to make redundancies would they provide outplacement support - almost 90% of organisations stated that they would, thus reflecting the growing recognition of the value of this type of support.

Who receives outplacement support?

Where outplacement support is offered, a third of organisations offer different programmes of support to employees depending on their level within the organisations - with greater support provided the greater the seniority.

What does outplacement support look like?

Organisations offer a range of outplacement support programmes, often based on level within
the organisation, including:

• 1 face-to-face meeting and access to an Onsite Resource Centre;
• Workshop-based Programmes;
• Time Based Programmes: 1, 2, 3, 6, or 12 Month Programmes; and
• Meeting Based Programmes: Ranging from 1-6 meetings.

Why is outplacement support offered?

Over half (57%) of responding organisations cite ‘providing people with the best possible chance of securing a new role’ as the main reason for offering outplacement support to their employees. Organisations (29%) also offer outplacement support to encourage employees to accept the changes both within the organisation and to their personal situation. Both of the above can also impact on an organisation’s employer brand in terms of presenting the organisation as an employer of choice; an organisation that ‘cares enough’ about their employees to continue to look after them in the often daunting transitional period that follows a restructuring.

The remaining organisations (14%) indicate that they provide outplacement support to maintain staff morale both for those employees whose roles are required in order to ensure the business continues to perform during the restructuring phase and also for those employees that remain with the organisation following an organisational change.

What is the Value of Outplacement?

“Outplacement support enhances the ease with which changes are implemented and accepted”

With 100% of organisations agreeing with the above statement it appears that organisations believe that in providing outplacement support they are managing the change more effectively; employees appear to accept the changes more readily and the organisation can move forward with minimum disruption. This also supports the findings which indicate that the ‘survivors’ within the organisation, or those indirectly affected, adapt better to major organisational changes when outplacement support is provided. Reed Consulting (2007) found that 'the provision of outplacement support helped the employer to retain and motivate those not directly affected'.

“Offering outplacement support is an important part of building a successful employer brand”

Over 70% of organisations maintain that providing outplacement support adds to the development of a successful employer brand. Linked to this, over 85% agree that providing outplacement support fosters positive post-employment relations, which in turn enhances the employer reputation in the wider community. These findings are consistent with the Reed Consulting survey (2007) where 78% of organisations surveyed believe that providing outplacement support can improve an organisations reputation and that providing outplacement support can help organisations be seen as 'an employer of choice'.

Choosing an outplacement provider…

When asked what factors would influence their decision in choosing an outplacement provider, almost 90% of respondents stated that the career consultant experience and (86%) the use of innovative and flexible programmes are important.

In addition, a large proportion of organisations (71%) stated that excellent client feedback and testimonials would be an important factor that to consider when choosing an outplacement provider. Less important factors were the provision of online services to support face to face sessions and value for money offerings.

The factor that least influences the choice of outplacement provider is the level of specific industry knowledge possessed. This is consistent with HDA's experience that career consultants are perceived as specialists in their own field, possessing the capability to effectively work with individuals to achieve their career objectives regardless of the industry within which the individual operates.

Organisations facing change are increasingly beginning to recognise the value of offering outplacement support to their employees. The provision of outplacement support not only eases the transition of employees from one role to the next but also reassures those employees that remain with the organisation post-restructuring - essentially it enhances the ease with which any changes are accepted and implemented. Your people both within the organisation and those that have moved on to new roles are instrumental in creating and building a successful employer brand and therefore should be provided with the best possible chance of success and this is where outplacement support adds considerable value.

To discuss potential HDA contributions, please contact us at email: info@hda.co.uk