Outplacement is defined as helping former employees through the transition to new jobs and helping them re-orienting to the job market by providing HR consultancy and relevant training. Outplacement is a modern procedure where, in cases of downsizings, mergers, acquisitions and such similar circumstances which require mass layoffs, companies acquire service from human resources experts in order to help their employees re-adapt to the job market.
This procedure is increasingly being more common and has positive effects both on employees and on companies. Outplacement is crucial when:
- Establishing a trust-bond with all employees
- Eliminating the negative affects of performance-related lay offs on active employees
- Protecting corporation's prestige in means of employee satisfaction
- Building a corporate and professional image against rivals
- Eliminating morale defects such as decrease in productivity