Better Outplacement Services

 

What are GATEWAY© Outplacement Services?

Outplacement is when any employer assists laid-off employees in finding new employment. This benefit can either be provided by the employer directly, or through a specialist service. It is much more than a feel-good service and has significant financial benefits to the company as well as separated employee.
Did you know that a reduction in workforce could greatly increase your unemployment insurance expense as much as 4X?

Depending upon the state, unemployment insurance costs can increase from under 2% of each payroll run, to between 6.7% and 9% depending upon your state’s program.

Why Employers Provide Outplacement Services to Their Employees?

Making layoffs or furloughs within a company or even terminating employees is a responsibility that leaders wish could be avoided. Unfortunately, there are times when these become the only options. Companies that provide outplacement programs are giving separated employees, who are still highly valued, a better chance of reentering the workforce. Once an employee is separated from the company, he or she will receive support from a job-search professional that assists the separated employee by providing productive and positive services like resume building and interview skills.

These types of supportive programs are a low-cost investment, that when packaged with some type of severance, returns company loyalty to those employees who have been also been loyal to you. Most importantly, it gives your former employees a better chance at finding new employment during these stressful and challenging times.  It’s clear that there are real costs associated by not offering outplacement services to employees: a tarnished reputation in the industry, potential legal fees, lost productivity, unplanned turnover, increased recruiting expenses, and significantly higher unemployment insurance costs which don’t lower until those separated employees return to the workforce.
Wondering about the average cost of outplacement fees in 2020? Here’s what you need to know.

 

The GATEWAY Plans:

The Gateway© Basic (Standard Outplacement Plan)

The Gateway© Basic outplacement program offers resume building, cover letter development, a recommended interview follow-up letter, profile updating tips, job interviewing skills, and job search training. This plan gives your separated employees the foundation to move forward in a job search but doesn’t offer individual attention that is offered through our advanced outplacement programs. This program is recommended for hourly and staff level positions.

Cost: $1200 per employee you wish to cover. Plan duration: 30 days.

– The Gateway© Plus (Bonus Outplacement Plan)

A step higher than the basic plan, our second-tier outplacement program provides more perks. In addition to resume building, cover letter development, interview follow-up letter, job interviewing skills and job search coaching, the Gateway© Plus outplacement program offers extended interview coaching, mock interview sessions, professional profile updating, and digital branding analysis. This program is recommended for mid-level management positions.

Cost: $2400 per employee you wish to cover. Plan duration: 60 days.

– The Gateway© Elite  (Elite Outplacement Plan)

Our Elite program is the best of our plans! This methodology is our most comprehensive coaching platform that best prepares individuals for their re-entering the workforce. In addition to what is offered on our Gateway© Basic and Gateway© Plus, participants also receive additional versions of their resume to accommodate the uniqueness of their skill in conjunction with specific jobs for them to apply. Gateway© Elite outplacement specialists consult one-on-one and provide personal guidance, LinkedIn networking course, Networlding™ methodology and coaching, and in-depth job search lead development from ZoomInfo by Discover.org.

Cost: $3,600 per employee you wish to cover. Plan duration: 120 days.

Volume discount programs are available. Umbrella organizations like conglomerates, associations, private equity firms can combine their needs for volume pricing.

Gateway© Outplacement Services at American Recruiters

GATEWAY Outplacement Plans – Quick Review

The GATEWAY- -The GATEWAY Plus- -The GATEWAY Elite
Plan Duration 30 Days 60 Days 120 Days
Resume Development Class
Cover Letter Development
Interview Follow Up Letter
Job Search Coaching
Extended Interview Coaching
Mock Interview Sessions
Professional Profile Updating
Digital Branding Analysis
One-on-One Consulting
Increased Personal Guidance
Job Search Leads

Companies considering layoffs should know the real costs for not providing outplacement services to impacted employees:

A Spike in Unemployment Insurance Costs

Did you know that reduction in force could greatly increase your unemployment insurance expense as much as 4X? Depending upon the state, unemployment insurance can increase from under 2% to between 6.7% and 9% of each ensuing payroll run depending upon your state program, until severed employees find new jobs.

Company leaders don’t tend to think about the rise in government unemployment insurance expenses as an immediate consequence. However, the price can be considerable, especially if laid-off staff remain unemployed for a lengthy period before finding another job.

Poorly Handled Reductions in Workforce Can Lead to Lawsuits

Managers who have not been trained by HR and outplacement professionals have the propensity to mishandle notifications of termination putting the company at risk. Resultant wrongful termination lawsuits can drain a company of valuable resources in both time and money. Lawsuits become public record and make the news, causing investors and customers to doubt the integrity of the company, leading to further loss of income.

Tarnished Brand and Lost Business

Former employees often become customers, competitors, business partners, consultants, or even become boomerang employees, returning to the company in a slightly different capacity after gaining further experience elsewhere. But remember this – they will be your walking and talking brochure, like it or not!

In a time when trust and transparency are the currency of employers of choice, damage to your brand could be costly. When employees believe their company has treated them like a disposable asset — they’re likely to share those feelings with their peers, family, friends and on social media. The costs of negative alumni sentiment not only hurt a company’s reputation but can also generate significant monetary damage. Negative comments on sites like Glassdoor will discourage future hires, cause longer recruiting cycles and expenses, or lost business opportunities due to difficulties in filling key roles.

The Cost of Lost Productivity and Employee Engagement

An often-overlooked consequence of a layoff is the effect on productivity and engagement of those remaining employees. Change is hard and watching friends and colleagues lose their jobs can be traumatic. Remaining employees may feel insecure about their positions and scrutinize how the company treats employees who are let go. When terminated employees are perceived to be disrespected, company morale will lower. Productivity will suffer. And an employee who survives a job cut may begin looking for another job. Often, after management has made all necessary cuts, they become surprised when they lose additional key employees they were counting on.

Getting Value from Outplacement

It’s clear that there are real costs associated by not offering outplacement services to employees: skyrocketing unemployment insurance expense per payroll, a tarnished reputation in the industry, potential legal fees, lost productivity, unplanned turnover, and increased recruiting expenses.

The employer-employee relationship is radically different today than it was in the last century. Workers don’t expect to stay with one company for their entire career. Employers need to retool and resize more frequently to respond to rapidly changing market demands. Employees sometimes leave and return, either as rehired employees or as customers or decision-makers at customers. Relationships matter, so taking the long view and offering transitioning employees assistance with an outplacement service can pay dividends today — and well into the future.

American Recruiters has offered outplacement services as far back as the early 1980’s. We have extensive materials, coaching services, proven methodologies, networking books and workshop materials available.