06.11.2024 Gabriele Strasser 6679

What is outplacement counseling?

A dismissal is always stressful. Companies that want to present themselves as a fair employer rely on appreciative severance management. The key to this is strategic new placement or outplacement.  

By Kyra Wetzel, expert for newplacement/outplacement at pme Familienservice. 

What are the reasons for terminations?

There are many reasons for termination: On the one hand, there are rapid changes in the market, globalization or current crises such as the pandemic behind us and the war in Ukraine. Sometimes you also realize that things are simply not right with individual employees. Regardless of the reasons, newplacement or outplacement can help to part on good terms and find a new area of activity for those affected. 

Layoffs despite skills shortage - a paradox?

The economic situation is forcing many companies to take cost-cutting measures. Listed companies in particular are required to optimize share prices, reduce costs and meet the demands of shareholders. The numerous redundancies, particularly in the IT industry, suggest that the shortage of skilled workers is over. But appearances are deceptive.

More than ever, the demand for qualified specialists is outstripping supply. It should be borne in mind that there was an optimistic hiring phase after the end of the coronavirus pandemic. Despite the horrendous layoff figures, the big tech giants still employ over 150,000 more people than at the beginning of 2020, according to Silicon Technology Powering Business.

What happens when employees and managers are dismissed?

Uncertainty, dismay and helplessness. This is how many employees feel when they find out they have been made redundant. They feel as if the rug has been pulled out from under their feet. This is quickly compounded by economic worries or even existential fears. All of this often creates enormous psychological pressure. The social aspect should not be neglected: employees not only lose their job, but also contacts with colleagues, integration into their team or cherished routines such as having lunch together. 

Managers are often faced with an acid test and a moral dilemma when they have to communicate a dismissal. Sometimes they have worked with the person concerned for years and may have been friends. Then there are the teams in which the dismissal of colleagues causes uncertainty. 

Tips for an appreciative separation culture

Employee dismissals often cause unrest and a bad atmosphere in companies. This is particularly the case if the dismissals were "rushed through", i.e. not thoroughly planned, and if communication with both the affected employees and the remaining team members was inadequate or ill-conceived.

These measures help to make a separation respectful and professional and at the same time maintain morale in the team:

Careful planning and a realistic time frame: Allow sufficient time to prepare for the separation and focus on a well-thought-out and clearly structured approach. 

Comply with all labor law provisions: Strictly adhere to the relevant laws, in particular the rights of the works council, collective agreement regulations and the special protection against dismissal for certain groups of people.

Preparation and training for managers: Prepare managers and HR managers comprehensively for the separation interview so that they can conduct the interview professionally and empathetically.

Transparent and empathetic communication: Use clear communication guidelines to ensure that all affected employees and teams are informed openly and at an early stage in order to avoid uncertainty and rumors.

Clear and understandable separation message: Convey the message and conditions of the separation respectfully but clearly during the conversation so that no ambiguities arise.

Appreciation and gratitude: Express appreciation and gratitude to departing employees to recognize their contributions and maintain positive relationships.

Focus on the needs of the remaining team: Take the concerns and fears of the remaining employees seriously in order to strengthen their motivation and trust in the management.

The newplacement/outplacement consulting service of the pme Familienservice provides support in all steps on the way to an appreciative separation culture.

What is Newplacement / Outplacement? 

Outplacement/new placement is an instrument in the sense of separation management to support employees in this challenging situation in an appreciative manner. Companies commission a specialized service provider to help dismissed employees cope with the loss of their job and, after a phase of self-reflection and goal-setting, to help them find a new position that matches their skills, experience and interests. 

Newplacement or outplacement includes a range of services offered to laid-off employees, such as career counseling, resume and cover letter assistance, job search support, training to improve job application skills and networking events.

How do employers and employees benefit from newplacement / outplacement?

Appreciative separation management as part of a new placement / outplacement offers a number of advantages for employers, managers, employees affected by a termination and also for the remaining team members:

Faster re-employment: The majority of dismissed employees find a new job before the notice period expires and there are fewer legal disputes.

A positive signal for the entire workforce: the remaining employees see that the company cares about the interests of its employees.

Relief for everyone involved: Whether it is the affected employees, their managers or team members - an intelligent new placement relieves the burden and significantly promotes satisfaction. 

Doors remain open: Sometimes today's laid-off employees are very valuable again tomorrow. Boomerang hiring is the trend. Appreciative severance management creates the basis for this. 

What are the building blocks of a new placement / outplacement?

As part of an individually tailored coaching program, employees who are leaving the company are advised and supported in finding a new job in a timely manner following a phase of self-reflection and goal-setting. Managers with personnel responsibility are supported in shaping the separation process in a spirit of partnership and, if necessary, receive support in preparing and conducting separation interviews.

Strengths analysis with the LINC Personality Profiler

For those affected, the aim is to reposition themselves and find a new area of activity. As part of an individually tailored coaching program, they receive advice and support to help them find a new job quickly after a phase of self-reflection and goal-setting. 

The heart of the process is analyzing your own strengths and skills. Here at pme Familienservice , we have had very good experience with the LINC Personality Profiler, a scientifically based online tool for analyzing and describing personality. With the help of a reflection on character traits, action-guiding motives and personal skills, this supports individual development processes in a targeted and sustainable manner and provides valuable impetus during the reorientation phase. 

In the strengths analysis, people become aware of their skills again. They were often so caught up in their routines at work that they no longer know what they can do. The analysis helps them to identify their skills and go into their application phase and job interviews with more self-confidence. This strengths analysis in particular is an added value for those affected, as it often changes their mindset. 

Is new placement/outplacement consulting also something for small and medium-sized companies? 

Newplacement / outplacement is recommended for companies of all sizes and even for individual redundancies. Companies with a small workforce in particular often have to reckon with the fact that they will soon need redundant employees again. It is better for the employer's image if they take a respectful approach and provide good support to those affected. Last but not least, newplacement / outplacement by an experienced provider is a great relief, especially for small HR departments. 

Find out more about Newplacement / Outplacement