Outplacement And Its Related Characteristics

outplacement-and-its-related-characteristics

Outplacement service has recently caught the wind among companies across industries and markets. While many have acknowledged the benefits of this service and implemented it in their company policy, there are certain sections who are still not very informed about this initiative. There are a lot of misconceptions about this service which has led to certain setbacks. Hence we present what outplacement actually means and what are its benefits.

Outplacement can be defined as an employer sponsored benefit that is provided to a certain segment of employees who have been terminated from their service due a strategic business requirement. It can be due to closure of a business wing, profitability issues or any other company related strategic initiative. There are many advantages of this service both at the employer and the employee end which are discussed as bellow.

  • One thing needs to be kept in mind that the displaced employees have contributed to the company’s growth at a certain point of time. So taking a decision of terminating them suddenly become a critical standpoint. Moreover, the level of complexity increases when some of the employees have been associated with the brand for a long period of time. It might send out a negative impression for the brand. Providing outplacement service helps in maintaining the healthy relationship with the terminated employees without creating unnecessary complexity.
  • Just a severance package is not always enough to satisfy an employee. The grievance related to termination may result in lawsuits being filed against the company. This service can minimize the tendency of this scenario to a great extent. It also shows the thoughtfulness of the employers even after separation.
  • This type of sudden and mass layoffs often create a massive panic wave among the existing employees. Some people even have the tendency to jump the ship even at the slightest realization of a critical condition. This situation can be difficult to handle and if not dealt with proper care then can result in severe conditions. When the existing staffs see the outplacement efforts of the company, they tend to think the situation from a logical point of view that contributes towards maintaining the productivity.
  • It helps in creating a positive brand image in terms of employee management which can be utilized for attracting talent at the time of need. It adds to the brand value in a positive manner.

From the employee perspective, the benefits are pretty straight forward.

  • It is a structured way to look for new career development opportunities with proper guidance in terms of resume structuring, industry opportunities and so on.
  • Sudden unemployment is a difficult situation to handle. Looking out for a job on its own is a lengthy and uncertain process. With guidance coming in through this service it might be effective in finding another employment opportunity faster.

Lastly, with this service, the individual is likely to face lesser career related challenges in coming times which becomes a bonus.

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Recruitment Process Differentiation – A Detailed Framework

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The recent dynamic developments in recruitment process have brought in many elements of selection which have progressed the system from traditional aspects to modern and innovative process. While there is a lot going on in the industry and new trends are making in to the global arena very frequently, it has become necessary to discuss the recruitment process from a detailed point of view. The process itself is differentiated in to two distinct categories namely, internal and external recruitment. These broader segments are facilitated by different types of sources for talent recognition which are as follows.

Internal recruitment as the name suggests, is the hiring process that occurs within the organization. It is considered as the productivity increasing initiative in certain cases. This process is channelized through three major initiatives, transfers, promotions and re-employment of ex-employees. Transfers are facilitated by bringing in resources from different locations at the target site. Promoting an existing employee through internal job postings is also another effective method. In some cases ex-employees are also called in for filling up positions. There can be scenarios where ex-employees provide unsolicited applications as well.

External recruitment is the hiring process undertaken outside the organization. It involves a structured planning, time and effort. There are various sources that facilitate external recruitment.

  • Employment at factory gate is the sourcing where the job postings are highlighted at bulletin boards at factory or at the gates. The applications received through this source are usually unsolicited. This approach is mainly used for recruitment at the ground staff level.
  • Advertisement is one of the most common sources of talent sourcing right from the beginning of time. One of the primary advantages of this type of sourcing is that it covers a larger area for getting the word out in the market. Mediums used in this approach are television and newspapers.
  • Employment exchanges are another effective sourcing method in this case. These are mostly run by government and channelize people through these exchanges. Currently, government related positions are filled in through employment exchanges.
  • Among the recent popular choices of sourcing, is the employment agency. These are private organizations that either provide manpower or conduct the hiring process for a client company. The level of involvement in the recruitment process is predetermined through an agreement.
  • Now days, companies are hiring talents fresh out of educational institutions through on-campus interviewing and selection. This is considered an effective way to locate fresher within a particular field of expertise. Often in certain cases companies face budget constraints which does not provide the scope of recruiting experienced professionals. In those cases, a fresher can be recruited and then trained on the job.
  • Recommendations and referrals are one of the most effective ways of talent pooling within a limited time frame. People in a particular area of expertise sometimes recommend a professional along similar lines. But in this case, one needs to rely on the referring employee only for the initial expertise evaluation.

Contractual sourcing is that type of recruitment wherein temporary employees are taken in for a particular project or fixed time frame.

Recruitment Process Outsourcing Benefits And Trends

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Recruitment Process Outsourcing (RPO) is defined as the partnership between an organization and a service provider wherein the entire recruitment process is outsourced depending on the requirement of the company. The benefits of RPO are as follows.

  • The fundamental benefit associated with RPO is that it gives better quality of hire (QoA). The service provider is associated with the sourcing, screening, short listing and presenting final set of candidates who will be interviewed by the client company for the final recruitment. The chances of finding a better match increases significantly with this approach.
  • Conducting a hiring process from initial stages till the on boarding of a candidate is a costly affair. Both resources and investment are involved in this approach and this needs to be maintained even after the process is completed which adds to the cost. RPO approach helps in reducing this time and effort as the service provider brings in its own team and it is a temporary solution till the requirement lasts.
  • It is considered a scalable model as it can be added easily with a company’s existing business structure at any point of time and can be removed when the requirement is over without disrupting regular business operations.
  • It is useful towards locating and screening candidates within a limited time frame which is helpful in case of immediate hiring.
  • RPO is a useful measure to build up an effective talent pool that can be helpful in the long run.
  • The service provider can also be engaged for analyzing the existing recruitment process and suggest measures for its enhancement.
  • The service provider performs time to time reporting regarding the process which aids in prompt decision making and facilitates easier audit process.
  • With the increased quality of hire and efficient recruitment, the management can utilize this for improving stakeholder engagement.
  • The service provider usually has a better knowledge about the labour market and its associated regulations and policies. This is useful towards enhanced talent search and acquisition.
  • Lastly, there is no need for direct advertising of job openings which adds to the effectiveness of the service.

Owing to these benefits, certain trends have been observed in recent times in recruitment process outsourcing which is expected to positively impact this segment.

  • The RPO service providers have concentrated on building up the talent pipeline as there is an increased pressure to find the right match for a job opening within a limited time frame. This will reduce the time to fill in the critical positions within organizations.
  • Technology will play an important role towards the recruitment process across every phase. It will make the entire process convenient and streamlined at the same time to reduce costs.

Big Data and analytics will be extensively utilized in the process in order to understand labour market trends so that right professionals can be attracted towards desired positions in order to make the system more efficient.