With the dismissal of health care executives and the "rightsizing" of operations in the field, there has been rapid growth in the number of outplacement firms with expertise in health care. Outplacement firms work with employees to make the transition to a new job. Their sole responsibility is to advise, counsel, prepare, and sometimes cajole the employee as his or her search progresses. More and more employers are offering outplacement services to displaced employees, primarily for two reasons. First, there are often far more candidates for positions in health care than there are jobs available. Employers know that it is not uncommon to have 300-400 applicants for one position, and competing for jobs takes time and expertise. An outplacement firm offers expertise and saves time for the candidates. Second, letting someone go after they have served an organization faithfully is a traumatic experience for all parties concerned. By drawing on the services of an outplacement firm, organizations try to soften the blow to both the displaced employee and the employees who remain. Morale stays higher because the displaced employee feels better and the remaining employees can see that the employee who left was treated fairly. Particularly in the midst of downsizing, employers cannot afford to have many disgruntled current or former employees saying bad things about the organization.
Often the roles of outplacement firms and executive search firms are confused. An outplacement firm works on behalf of the job seeker by helping him or her seek employment, while the executive search firm works on behalf of the employer who is seeking candidates. Although executive search firms often switch into the career counseling mode in order to be of help to a candidate, their first loyalty is to the employer, so the time they devote to career counseling is extremely limited. It might seem natural for search firms to provide outplacement services, but reputable executive search firms try to avoid doing outplacement because it creates an inherent conflict of interest. It is unethical for a firm to represent clients with competing interests. A similar conflict of interest occurs if outplacement firms try to take on the role of a search firm, so keeping the distinction between the two types of activities is extremely important.
Outplacement firms refer to the employer who is paying the fee for their services as the sponsor. Outplacement consultants often refer to themselves as career counselors, which has a more positive connotation than outplacement consultant. In this chapter, the two terms are used interchangeably.
What are the services that an individual can expect from an outplacement or career counseling firm? Among the services offered are the following:
- Resume preparation
- Practice interviews using a videotape
- Psychological testing
- Skill testing
- Access to secretarial help and sample form letters
- Access to research on various employers
- Networking
- Direct mail services
- Access to publications, directories, and other reference material
- Counseling
- Checking of references
- Business cards and stationery
- Job leads
How does one go about picking an outplacement counselor? In many cases, the employer has already lined up an outplacement specialist to deal with employees' transition out of the organization. This may be unfortunate for the employee, since ideally the employee should have some say in the selection of the outplacement firm. The employee needs to feel (on a personal level) that the firm really has his or her interests at heart. Nevertheless, the selection of the firm should not be left entirely to the discretion of the employee. The employer too should have input, since it is generally the employer that foots the bill for the service. In addition, employees may not know how to assess outplacement firms, whereas a knowledgeable human resources executive may have insight into an outplacement firm's track record in the market. The choice of an outplacement firm should be a joint one, with the employer negotiating the financial agreement before the final selection is made.
