Outplacement firms rake it in as companies try to soften layoff blows
₹40,000 to a couple of lakhs per candidate. The outplacement firm charges only the company laying off, and not the firm hiring the candidate.
Thus, it’s a win-win for a recruiter, as picking up an industry-ready candidate who has been trained in specific roles by the outplacement service is also cost-effective. “Outplacement is inversely proportionate to the job market.
In 2022, we saw an uptick in hiring, so demand for outplacement services was lower. In 2023, particularly in H2, we are seeing a higher demand for outplacement services, as hiring in certain sectors is impacted by recession fears, etc," said Sue Ann Vaz, executive director of ABC Consultants who also heads its outplacement services.
In the volatile age of social media, nobody wants to go viral for the wrong reasons. And for companies, the stakes are too high to invite a social media backlash, which can severely dent their brand image.
Thus, outplacement services are useful for perception management, too. The “motivation behind seeking outplacement services may have changed from support in covid times to risk-mitigation in today’s times," Vaz said.
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