How To Choose an Outplacement Agency

When a company reduces its workforce, an outplacement agency may be engaged to assist displaced workers in their search for new positions.  The former employer pays the outplacement agency, providing the assistance as part of the benefits package given upon termination.  The services are provided free of charge to the workers.  The level of service provided by the agency depends upon the contract between the downsizing company and the outplacement firm.

An outplacement agency offers a variety of services, including information on applying for unemployment assistance, government and private resources for retraining, skills assessment and testing, resume revision and writing, interview coaching and other job search support.  Some outplacement agencies offer desk space, computers, fax machines, conference rooms, and classrooms for program participants.

A quality outplacement agency eases the discomfort of layoffs by providing these services.  The former employees recognize the benefit of receiving assistance with their job search.  Outplacement facilitates transition into unemployment, and in many cases the outplacement firm is able to source new jobs for laid-off workers.  A good outplacement agency has contacts with employers, recruiting firms, and government agencies that will assist people with job searching.

What are the characteristics of a quality outplacement agency?  Agencies develop a good reputation through excellent service to other firms going through layoffs.  Ask for references from the agency, and follow through by talking to others they have served.  You may also wish to proactively contact colleagues at other corporations to find out which outplacement firms they have used and would recommend.

If your company is facing a sizable layoff, check to make sure that the outplacement agency can handle the quantity of people downsized.  If it is a national firm, they may be able to shift counselors from one region to another to handle large groups, or they may use temporary consultants to assist with large projects.  If your downsized workers are in a specialized field like science or engineering, check to make sure that the agency has resources appropriate for your workforce.  Visiting the local office of the firm allow you to see the physical resources they have available.

Once you chosen two or three potential outplacement vendors, ask them to provide bids with clear details about their costs and services.  This will allow you to choose the best value, and will also help your legal advisers to create a well-defined contract providing the highest quality of outplacement services your company can afford.