Outplacement is the formal assistance to terminated employees in finding new employment. It is widely used for personnel at all levels to understand and cope with the trauma of termination. Outplacement Services reduce stress for both the corporation and the employee. The loss of a job ranks third after the death of a loved one and divorce, as the most stressful experience an individual may undergo.
People experiencing a sense of loss normally move through a series of emotional stages.
Effective outplacement helps the terminated individual move through these stages more quickly, by accepting reality at the outset and quickly building and creating future employment objectives and the skills to conduct a successful job search. The American Management Association in 1986-87 conducted a research study of 100 companies that offered Outplacement Services. The studies revealed they offered Outplacement Services for the following reasons, which are in order of importance. Fees range between five and fifteen percent of the client's annual salary. Fees are based on the type of program and support services provided, and the number of the employees scheduled for termination.