By: Meghna Rustagi -- Research Analyst, Outplacement –HR Services
01 January, 2017
Outplacement is a service that companies offer to the exiting employees after a layoff, reduction in force, shutting down of a business unit or when mergers or acquisitionstake place. Earlier, corporates used traditional outplacement solutionsto help their employeesto land to a new job.However, in the last few years,outplacement services have gained prominence in terms of protecting brand name, engagement with current employees and reducingthe cost involved in layoffs.
With an increase in spend among organizations to support affected employees, the outplacement spend hasbeen increasing year-on-year due to frequent changes in business operations, restructuring, leadership, layoffs, etc.However, to manage thehuge spendonoutplacedemployees and providehigh quality andlow cost services,organizations have shifted their approach towards the virtual platform at an affordable cost.
Technology enabled web-basedservicescan benefit employees with respect to quality, easy accessibility in remote locations, etc. Studies indicate that virtual or online transition model canbe more effective than the traditional modelof outplacement.
As global companies cut down workforce inhuge numbers across multiple geographies, technology can playan eminent role in providing services virtually to outplaced employees. As of today, service providers preferto use a blended approach of high-touch (traditional support) and high-tech (virtual support) services for transitioning employees to new roles faster and thereby, protecting employerbrand. They offer solutions using advanced tools and cloud-based software to simplify the process of career transition.
Virtual Outplacement solution is defined as a service delivered to employees and individuals virtually with the help of technology. There have been major technological developments in outplacement industry. These play an important role in today’s world of flexible workforce. They can support employees residing in remote locations and also help them in career transition.