The Complete Guide To Outplacement Counseling

Alan J. Pickman, Alan J. Pickman, PhD

• Publisher: Routledge
• Year: 2013
• Print ISBN: 9780805816488
• eBook ISBN: 9781317780311
• Topic: Psychology
• Subtopic: Mental Health in Psychology
• Index: Psychology

Recognized by business managers as a useful and practical tool to assist them in responding to a set of complex business challenges, the need for outplacement counseling - the process of assisting employees who have lost their jobs to develop effective career plans and to find new employment - has grown dramatically during the past two decades. Given this rapid expansion of the field, assembling, organizing, and clarifying the body of knowledge and information available about outplacement has become critically important. The first comprehensive effort in the field, this book presents authoritative, up-to-date information on an exhaustive range of outplacement topics. A psychologist and experienced outplacement practitioner, the author has recently been chosen as one of the charter fellows of the Outplacement Institute, the sole certifying organization for outplacement practitioners.

Of value to all those interested in the field including current and future practitioners as well as human resources professionals, this volume contains essential information for candidates receiving outplacement services, counseling students, and researchers involved in the study of counseling in business and industry. With such a broad audience in mind, it contains a wide range of information--counseling theory and practical suggestions geared expressly to the needs of practitioners, descriptive material on all topics, and brief case histories of actual outplacement candidates. Written in non-technical language, the volume brings to life the flavor of outplacement practice.

This unique volume covers topics not addressed elsewhere in the current outplacement literature including:

• the psychological barriers to a successful job search
• the behavioral and counseling implications of the outplacement setting
• the theoretical basis of outplacement counseling
• the relation between outplacement and psychotherapy
• the professional development opportunities for outplacement practitioners
• the supervision of outplacement practitioners
• the cross-cultural issues to be considered in outplacement
• the relation of outplacement to other career development professionals, and
• the marketing of outplacement services

Also of importance, the appendices offer data not previously disseminated to the general public including:

• competencies standards for OPC practitioners as established by the International Association of Outplacement Professionals (IAOP)
• standards of ethical practice for outplacement professionals as established by the IAOP, and
• listings of information resources for OPC practitioners and candidates featuring a section on computer-based sources for conducting career-related research

Chapter 1
Introduction

Corporate-sponsored outplacement counseling is an important and growing professional service industry in the United States and in a number of foreign countries. Annual revenues for the outplacement industry grew from approximately $50 million in 1980 to approximately $750 million in 1993. By 1991, 90% of the largest 50 companies in the United States provided some type of outplacement consulting services to their employees who have been affected by downsizings. There are at least 300 outplacement firms in the United States. These organizations employ at least 5,000 individuals, and counsel approximately 1.4 million individuals per year (D.A. Lord, personal communication, December 6, 1993).

What is outplacement counseling? Basically, outplacement counseling is a process of helping employees who have been terminated or whose jobs have been eliminated, to face their job loss with renewed self-confidence, to learn effective job search strategies and techniques, and to conduct a successful job search campaign.

The most comprehensive outplacement programs cover a full range of career-related issues. They begin by counseling the individual client or candidate on how to deal with the emotional issues related to termination. They provide career assessment and assist the client in developing written job search materials including resume, cover letters, and other marketing materials. They then provide interview skills training, assist in the formulation of effective marketing strategies, and review the "dos" and "don'ts" of various job search techniques including networking and responding to newspaper advertisements. Clients are also coached about utilizing executive search and/or placement agencies, and drafting effective letters to use in direct approaches to target companies. Counselors provide motivational support and encouragement throughout the process. The comprehensive programs also provide office and administrative support services that can greatly facilitate the conduct of an effective job search campaign.

History

The origins of outplacement counseling are a bit unclear. Many of the professionals in the field maintain that outplacement began in the United States in the early 1960s when Humble Oil sought assistance for some of its terminated executives. Sol Gruner is generally given credit for designing the services offered in this effort. Some authors, however, trace the beginning of outplacement to Thomas Hubbard of the management consulting firm THINC. Credit is also given to the techniques designed by Bernard Haldane of Haldane Associates in the late 1940s in providing resume, interview skills, and job search training to recently discharged servicemen who were re-entering the civilian job market (Brittain, 1982). Since the early 1960s the outplacement industry has grown to a $750 million business (D.A. Lord, personal communication, July 12, 1993). Growth was slow in the 1960s when the services were offered primarily to the highest level executives. Growth accelerated in the mid- to late-1970s as outplacement was offered more commonly to middle management, technical professionals, and nonofficials.

The growth of outplacement services has evolved in response to the changing employment environment, A number of factors spurred its growth. They included changes in the economy, changes in social conditions, legislative and judicial influences, and shifts in corporate responsibility.

In the late-1970s and 1980s depressed stock values made the acquisition of other companies an attractive corporate strategy for growth. In 1986 alone, there were more than 3,200 mergers and acquisitions. These mergers and acquisitions resulted in job eliminations, downsizings, and management reorganizations. In order to lower costs in the face of stiffer competition, companies streamlined to make their operations more efficient and profitable. "Lean and mean" became the dominant rallying cry of management. Trimming personnel was viewed as the easiest, quickest way to cut costs in the short run. It is estimated that 2.2 million jobs in large corporations disappeared between 1980 and 1985 (Consult America [CA], 1989). An additional 2.3 million jobs disappeared from large U.S. corporations between 1986 and 1992 ("Industry Overviews," 1993).

There were changes in social conditions as well. Providing a work environment that enabled employees to remain with the same company for their entire career was no longer a major corporate objective. Loyalty to employees was weakened in the face of demands for short-term profits and corporate survival. Employees, in turn, felt less bound and committed to their employers.

On the legal front, important legislation enacted during the 1970s and 1980s mandated social changes that affected employment practices. Laws designed to eliminate discrimination in terminations were passed. Also, corporations were looking to protect themselves against lawsuits initiated by discharged employees for wrongful terminations. For these reasons, outplacement came to be seen as an effective human resources management tool.

Finally, there were issues of corporate responsibility. As demands by shareholders for short-term earnings and profits grew, many senior managers chose to reduce the size of the work force in order to have a rapid effect on the bottom line. At the same time, human resources professionals recognized the importance of having their company seen as fair in its employee policies. Having a former employee badmouth a company following termination was not good business practice. It did not promote good community relations, nor foster good morale in the remaining employees. Providing outplacement services came to be seen as very important in maintaining a favorable corporate image. So, all these conditions combined to contribute to the growth of outplacement services. Outplacement counselors became increasingly accepted as facilitators of corporate change.

Professional Associations/Activities

There are two major professional associations in the outplacement field. The Association of Outplacement Consulting Firms (AOCF) is an industry association that represents member outplacement firms. The International Association of Outplacement Professionals (IAOP) represents the individual outplacement practitioners.

Although the birth of corporate-sponsored outplacement took place in the early 1960s, the first professional association in the field, the AOCF, was not formed until May 16, 1982. Its goals are "to deliver quality service in an ethical manner to organizations who sponsor individuals; to produce meaningful research resulting in data that encourages outplacement as an intelligent response to the anguish of termination; to provide a public relations service and to provide a buffer against the attempts by governments to tax, license and regulate" (Le Hane, 1990, p. 41).

The AOCF has grown significantly over the years. It has approximately 65 member firms including seven of the eight largest U.S. firms. Its members represent approximately 65% of the outplacement industry revenues. There are members from around the world including firms in Europe, Asia, South America, and Australia. The use of outplacement firms is growing dramatically in certain of these areas, especially Europe. AOCF members include large, medium, and small firms whose business strategies vary considerably.

In addition to the annual membership meeting, since 1988 the AOCF has also sponsored a yearly professional conference. Attendance has been as high as 350 to 400 people. The conferences include seminars, workshops, keynote addresses, and awards of excellence to corporate organizations that have distinguished themselves in their use of outplacement firms.

A major issue for AOCF in the past few years has been the possible taxation of outplacement services by the federal government. The organization undertook a major lobbying effort to demonstrate that outplacement is a "restorative" and, therefore, nontaxable benefit to the individual, rather than an "augmentative" benefit that would make it taxable. These efforts were made because some government officials viewed outplacement as a perquisite offered only to senior executives that included luxury features such as club memberships, rather than as a service that has been offered to increasingly large numbers of middle managers and nonofficials and that does not include such luxury features. In August 1992 the IRS ruled that the value of corporate-sponsored outplacement services will not be treated as taxable gross income (Harrison, 1992). The industry breathed a collective sigh of relief, as a ruling in the opposite direction would have dealt a stunning blow to the outplacement industry as it currently practices. The AOCF has been active in three other countries—Canada, the United Kingdom, and France—where the tax issue has also emerged. In all cases, the authorities have decided not to consider corporate sponsored outplacement as a taxable benefit.

AOCF represents outplacement firms and their owners. Individual outplacement practitioners did not feel that their specific interests and concerns were being fully addressed by AOCF, So, in 1989 with the active support and backing of AOCF, the IAOP was formed. Its purpose is "to serve, support, develop and unite individual outplacement practitioners." Its mission is to build the professionalism of its members and to achieve recognition of that professionalism. IAOP is designed to serve any individual whose work-related responsibilities or interests are in the area of outplacement without reference to the practitioner's setting. It includes individuals who deliver directly outplacement services to individuals or groups, those who consult directly with the outplaced candidates or corporate sponsors, and those who market outplacement services to client companies. There are also different categories of membership for those individuals whose responsibilities do not include direct delivery of counseling, consulting, or marketing of outplacement services, but whose personal or professional interests are in outplacement or outplacement-related services.

The IAOP was designed to be a grassroots organization that would consist of local chapters. The growth of the organization has been impressive. As of spring 1992 there were more than 800 members. There are 17 regions, 11 in the United States and 6 international, including chapters in the Caribbean, Latin and South America, Asia, Australia, and Europe. A number of standing committees have been charged with establishing guidelines around such topics as ethics, counselor competencies, and program development.

Thus far, the two professional groups, AOCF and IAOP, have cooperated in promoting the growth and advancement of outplacement counseling. However, it is possible that as time goes by their respective interests and agendas, while still overlapping, will diverge in some respects. For example, in spring 1993 the IAOP sponsored its first annual outplacement conference that was held separately from the yearly AOCF gathering.

In summary, these two professional associations encompass a significant percentage of those firms and individuals who are active in the outplacement industry. The growth and development of these associations, especially that of IAOP in the past 4 years, reflect this new industry's ongoing efforts to define both its present and its future.

Internal Versus External Outplacement Services

Outplacement services can be provided by internal programs, external firms of some combination of the two. This section discusses the advantages and disadvantages of the various approaches.

Having terminated an employee, managers might have little desire to have further face-to-face contact with the employee. To do so could be further reminder of a difficult situation. This is one of the main reasons that many managers are very glad to use external outplacement services. They can get help in carrying out a difficult task, and they can then rest easier knowing that the terminated employee is both out of sight and in good hands.

There are other reasons for calling upon external outplacement professionals. Many managers believe that outplacement firms possess greater expertise and sophistication in helping terminated employees. External firms have a staff of counselors dedicated to providing such services. In addition, individual candidates might feel much more free to communicate confidential information to an outsider than they would to an employee of their former organization. Along similar lines, sensitive situations that involve highly personal information might be better handled by outside professional counselors. Furthermore, outplacement firms might be equipped with more comprehensive office support services to assist candidates in conducting a job search campaign.

Not all corporations, however, turn exclusively to external firms for their outplacement needs. There are several models for providing outplacement services internally.

The first model is a program of full-time specialists who perform the full range of outplacement services. They consult with managers in planning and executing downsizings, provide services that might include individual counseling, group workshops, and special offerings. In this model the in-house unit also provides office and administrative support services to assist the candidates in conducting a job search campaign. To justify financially the operation of such a service on an on-going basis, a company must have downsizing efforts underway on a consistent basis. Chemical Bank and Citicorp are two very well-developed examples of this model. Not coincidentally, both are in an industry that experienced major restructuring throughout the 1980s and into the 1990s.

A second model followed by some companies is to provide internal outplacement services on a project basis. In these situations a corporation might establish an internal career center in response to a major downsizing. Employees are then sent to the center where they receive counseling services and office support. The nature of the counseling services that are provided, and the extent of the office support, can vary widely. In some cases it is quite comprehensive; in other cases far more limited. Typically, when the downsizing project ends, the center is shut down as well. In effect, the last person out "shuts off the lights" and the company is no longer in the practice of providing outplacement services.

External firms are very often used even by those companies that provide substantial internal outplacement services. The expertise of the external firms is tapped in a couple of different ways. First, the external firm can consult with the corporate sponsor around establishing an internal career center. The consultation might address issues concerning program design and delivery, communication to employees about the services, and establishment of office support services. In some cases, a representative of the external firm is put in charge of managing the site. In other cases, a representative of the sponsoring company manages the center with or without consultation assistance from the external firm.

A second way in which external firms combine with internal outplacement services is around the assistance provided to senior managers. Senior managers are very often referred to external firms even when high quality internal services are in place. There are at least a couple of explanations for this pattern.

First, the external firms are typically in a position to offer more extensive administrative support, services. Most external firms have very well-appointed offices. Options for private offices, dedicated secretarial and administrative assistance, and other amenities exist in the external firms. Senior executives are accustomed to such arrangements. Continued access to such services in the external firms helps soften the psychological blow of termination, as well as facilitating the effective conduct of a job search campaign. In addition, most companies think it important to maintain the special consideration typically afforded to senior executives. To ask them to use the same internal services available to lower level managers or nonofficials, although more democratic, is to negate their senior status in a way that companies choose not to do.

There are several other reasons that a company might choose to provide outplacement services internally rather than using external services. First, it can be cost effective. External outplacement firms typically charge 12%-20% of an executive's compensation for full-service individual outplacement. This can result in very substantial fees, especially when large numbers of high-salaried executives are involved. Some companies think that the job can be done more cheaply internally, and, thereby, it can be offered to more employees. Another potential advantage is that the outplacement services can be integrated more easily and more fully with other human resources services. Also, the visibility of an internal program can serve as concrete proof of the company's commitment to assist those whose jobs have been eliminated. If the center is fortunate enough to receive good word-of-mouth reviews by its clients, this can encourage fuller utilization by those whose jobs are eliminated at a later date.

Having an internal outplacement program is not without its complications. There are several factors that must be considered. The first concerns possible conflicts of interest. Probably the single most important issue in establishing an internal program is credibility. Employees will ask how it is that, on the one hand, a company will eliminate their jobs, but, on the other hand, offer them assistance through an outplacement program. It is critical that the termination decision and the counseling process be seen as separate. Unless this is done, the counselor is put in an awkward position in relation to the candidate, and is unlikely to develop the trust and rapport necessary for a successful counseling relationship. The solution, as practiced by the most successful internal programs, is to build confidence among employees in the outplacement program. This is done most convincingly by demonstrating to the clients that the outplacement counselor is squarely in their corner, and that the counselor was in no way responsible for the decision to terminate.

A second major and related issue is confidentiality. Employees must be assured that no specific revealing information about the content of their counseling sessions will be disclosed to management. The counselor should inform the candidate about the type of information that will be transmitted to management. Usually it is information of a general nature such as start date of counseling, overall progress in search, and, possibly, the type and location of re-employment.

A third issue for internal services is the resistance of executives to use it. Some executives, especially more senior ones, might consider it awkward to be counseled in-house by individuals who previously were subordinate to them. Also, they might be less willing to disclose relevant personal information for fear of exposure.

A final factor that seems to cut both ways is related to re-employment options. For some individuals participating in an internal program perpetuates the notion that they are still part of the organization. This can lead them to think that they have not really been separated, and it can retard their progress in moving forward. This is especially so if they learn of others who have been re-employed in the same company, thus reinforcing the notion that they too will be saved. For others, being a part of an internal program does not lead to the false hope of being saved. It can, however, facilitate their initial networking efforts as they still have ready access to many former colleagues.

In summary, outplacement services can be provided by internal programs, external firms or some combination of both. Management needs to decide which approaches are best suited for their specific circumstances.

Chapter 2
Consulting to Organizations

This chapter focuses on consulting to corp...

Table of contents

• Cover
• Title
• Copyright
• Dedication
• Contents
• Preface
• Chapter 1 Introduction
• Chapter 2 Consulting to Organizations
• Chapter 2 Establishing the Counseling Relationship
• Chapter 4 Assessment in Outplacement Counseling
• Chapter 5 Barriers to Successful Job Search
• Chapter 6 Group Services
• Chapter 7 Physical, Behavioral, and Counseling Implications of the Outplacement Setting
• Chapter 8 Toward a Theory of Outplacement Counseling
• Chapter 9 Common Patterns of Counselor-Client Interaction
• Chapter 10 Is Outplacement Ever Therapy?
• Chapter 11 Background Qualifications
• Chapter 12 Professional Development
• Chapter 13 Supervision
• Chapter 14 Cross-Cultural Issues
• Chapter 15 Women and Outplacement
• Chapter 16 Family Issues
• Chapter 17 International Issues
• Chapter 18 Ethics
• Chapter 19 Relation of Outplacement to Other Career Development Professionals
• Chapter 20 Marketing Outplacement Services
• Chapter 21 Future of Outplacement
• Appendix A Competencies Standards for Outplacement Practitioners as Established by the IAOP (1992)
• Appendix B Standards of Ethical Practice for Outplacement Professionals Established by the IAOP (1993)
• Appendix C Resources for Outplacement Practitioners
• References
• Index