Demand increasing for outplacement services
By Christine L. Romero
Arizona Republic
Gayle Pincus wouldn't be caught without her self-promoting 60-second commercial.
The Arizona job hunter uses it in elevators and corridors to give potential employers the lowdown without overloading them.
Pincus is learning tricks like this from an outplacement firm, and she hopes these tools can help her find her dream job in tough economic times.
Outplacement services offer unemployed executives and middle managers help with job hunting, resume writing, interviewing and skills assessment, and even provide stress counseling. Some also provide office space, computers and telephones for their clients.
"The outplacement services were a way to prepare myself for today's job market," said Pincus, who voluntarily left her job as vice president of operations after 24 years with Honeywell. "The last time I looked for a position, nobody knew what the word 'Internet' meant."
When you add workers who leave voluntarily, like Pincus, to the hordes of newly laid-off workers, it spells big business for the outplacement industry.
The Association of Career Management Firms International pegged the outplacement industry's value at $1.6 billion in 2000, said Mike Giuffrida, executive director of the Washington, D.C.-based trade organization.
The bulk of the business comes from middle- and upper-level workers like Pincus, he said. That segment of the industry is up 10 to 15 percent, Giuffrida said.
In general, outplacement fees for middle to upper managers range from $5,000 to $10,000, making it too costly for many workers unless an employer pays. Group services for lower-level and administrative workers can be as low as $200 a head. But some say these group services, including resume writing, haven't helped them much.
Still, firms in the outplacement industry say business is up as companies try to make layoffs easier.
Research by Florida-based career consulting and outplacement firm Manchester Inc. indicates that after health insurance, outplacement services are considered the second-most popular severance benefit.
Al O'Connor, executive vice president of the Phoenix office of Right Management Consultants, said he believes that all clients can benefit from the networking and support they get from other job hunters using an outplacement service.
Group support can be extremely helpful for job hunters, Pincus said.
"You don't want to get isolated and alone when you are job hunting," especially given the tight job market, Pincus said. She uses an e-mail group made up of Right's clients to stay connected.
Sometimes, Pincus said, those who have lost jobs feel loss, anger and denial.
"With a support network, people are able to view it as an opportunity for growth or an opportunity to do something that you might actually like better," she said. "There are always positives. Mental attitude helps a lot."
While Pincus feels she's benefiting from the services, some employees had a different opinion.
A survey of 700 laid-off technology workers suggests that about 50 percent who received outplacement services considered it "not helpful at all," according to research by the internet company techies.com. More than 40 percent said the resume writing instruction didn't help, while 56 percent said the stress counseling wasn't useful.
O'Connor said Right uses a battery of questions and tests to help its clients decide in what direction they want to move. For some, it's nonprofit or consulting work. For many, it can mean changing industries, he said.
Recent research indicates that more workers are moving to different industries as they face trouble finding work, Manchester Inc. reported.
Manchester surveyed 1,700 executives and managers nationwide in varying industries, such as banking, manufacturing and chemical. More than 30 percent said they are trying to transfer their skills to other industries. Those formerly in banking were among the largest group, at 65 percent, considering a new industry, such as financial services, insurance, health care and nonprofit work.
O'Connor said job hunters need to look within when making this kind of move.
"We ask them, 'What are your hobbies? What do you really love to do?' " he said.
Job coaches say they want clients to think about their accomplishments. This can help determine what skills are used to manage. And it can get a person thinking about a different industry, O'Connor said.
