Higher demand for outplacement services

Singapore - More companies are turning to outplacement services to support their employees in the midst of career transition as the recession deepens.

William Ayers, a career management consultant and the founder of The Ayers Group, says outplacement and career transition services are seeing a 60% increase in demand as companies take strategic measures to realign their talent resources to manage costs.

Outplacement provides support and encouragement to employees and "assures them that they can be helped in the event of retrenchment, and what they can hope to expect in the future as job benefits", explains Ayers. It lets employees know they have people who are educated and trained to specifically help those caught in career transitions.

Ayers feels there are both fixed costs and variable costs, and the human asset is the highest and most important variable cost. Investing in outplacement services prevents workplace litigation, and also sends a positive message to the remaining employees in the company, keeping them focused and motivated.

Laletha Nithiyanandan, vice president of HR consulting (Asia Pacific), Kelly Outsourcing and Consulting Group, adds that outplacement services helps improve employee retention and enhances the brand equity of the company as the 'employer of choice'. It also "ensures their position in the market when the economy picks up".

Companies on a tight budget can invest in outplacement by "collaborating with the outplacement firm, understanding what the budget is, and letting the outplacement firm work with them to create something that is good for the whole organisation and give them a service which they can afford", says Ayers.