Outplacement is described as the efforts made by a company to help its laid-off employees through the laying off transition and help them to re-orient in the job market and get another placement. It is a program of resources, information, and advice provided by an employing organisation for employees who are about to be laid off. These agencies typically help by offering career guidance, providing practice interviews, and placing laid-off employees in new jobs. These programs are often put into place well before the laid-off employees leave the employer and, in the case of large-scale layoff programs, may remain in place for several years. A consultancy firm usually provides the outplacement services. This is achieved through practical and psychological support. Outplacement is either delivered through individual one-on-one sessions or in a group format according to the laying off policy of the company. The term “outplacement” was coined more than thirty years ago by the founder of a New York-based career consultancy. With the increased rates of downsizing, rightsizing, redundancies and layoffs, particularly during the 1980’s and 1990’s, businesses increasingly found a need for some form of assistance in reducing the stress of redundancy for both departing employees and those who remain.
The outplacement process requires many resources. HR has to evaluate its potential. HR should focus on employees staying with the organisation. This is the main reason for hiring the external outplacement consulting company.