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HR Executive's Strategic Role
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For Immediate Release
October 29, 2003

The HR Executive's Strategic Role in Outplacement
[ Houston, Texas ]

Contact: Melany Roberts Barlow 713-623-8780

Title of article:  "The HR Executive's Strategic Role in Outplacement"
by Susan R. Silvano
Page 3
Volume 10, Number 5 / July-August, 2003
Name of publication:  "STRATEGIC HUMAN RESOURCES COMPENSATION NEWS+"

www.humanresourcesinfo.com

 

THE HR EXECUTIVE'S STRATEGIC ROLE IN OUTPLACEMENT
By Susan R. Silvano

 

You're a senior HR executive and you've just heard news that makes your heart sink. The CEO and senior management advised that business imperatives dictate substantial layoffs. You scramble to plan and organize, to think of every contingency and to get the severance packages together. As you are taking care of all the details, you worry about what this means for the employees, the organization, and even, for you.

 

As an experienced HR professional, you may have helped your organization through the downsizing process before, or this may be your first experience with separating a number of people. Perhaps you have been laid off yourself, or you have watched as your friends and peers have been separated. As a strategic HR partner in the organization, you have an obligation to the company to plan and execute the upcoming downsizing "event." Regardless, you are filled with anxiety about doing the right thing for your company and the employees who will soon become displaced.

 

Downsizing may be the result of mergers and acquisitions, declining revenues, outsourcing, or other business requirements that impact a company's bottom line. HR executives are increasingly faced with the task of finding appropriate resources to assist their organizations with outplacement. Most HR executives are conceptually familiar with the term "career transition" and are generally aware of what outplacement means. However, the majority of HR executives are not typically aware of the specifics of outplacement as an industry. How will you find the best company to service your outplacement needs? There are many choices and options available, and most outplacement firms appear to offer the same services. Few guidelines exist for evaluating and selecting the outplacement firm best suited to your organization's needs and it is difficult to make the best decision for your separating employees based on marketing materials and a couple of references.

 

The most common perceptions about outplacement firms are: "Bigger is Better" and "Cheaper is More Cost Effective." You are most likely to get full value for your company if you take the time to explain the specifics of your situation and ensure that the consultants understand your needs. The outplacement firm should then be able to tailor something exactly for you. Meet them face-to-face, and interview them in depth. Bringing consultants in as soon as possible in the process is also key to getting the full benefit of their expertise and your outplacement dollars.

 

As you begin to prepare for the "event," you wonder:

Which employee group(s) will be affected?
How will we maintain morale while terminating employees?
What will my budget be for providing "outplacement services?"
How can I maximize the services received based on the budget?
Who will train the employees that will notify the affected employees?
How will we handle re-location of affected employees and their families?
How much service will our separating employees need to successfully transition into a new career or a rewarding lifestyle?
What does success look like for the organization? For our employees?

 

As a strategic HR partner in your organization, you might consider creating a checklist to help you and your organization's management plan and evaluate factors that may significantly impact your organization's transition:

 

Pre-event planning

What are the projected dates and timelines?
What number of positions will be eliminated and/or what is the total dollar amount of the reduction?
Will some of the separating employees be required to stay on the job for a certain length of time while others will be asked to leave immediately after notification? If so, how will I retain them?
Can those employees who are required to stay be provided career counseling on site?

 

Positions/Locations

Who will be affected (levels, titles)?
How many/which geographic locations affected?
Will all locations be affected at the same time?
Will plant shutdowns or phased closings occur?

 

Notification Training

How will we prepare management for delivering the message to employees?
Will notifications be done individually or in groups?
Risk Assessment:
What considerations must be weighed related to Performance Review?
What considerations must be weighed related to Position Sensitivity?

 

Severance Plan

How will severance be calculated?
What will be included in the package?
What is the structure for accept/denial terms?
How will benefits meetings or dissemination of benefits information be handled?
Will Employee Assistance Program benefits be continued? For how long after termination?

 

Relocation

Will employees have the option to re-locate?
How will company manage the costs?
Should dual career counseling be provided for spouses/partners who may need/want to become reemployed in the new location?
Pre-Decision: Relocation/Market Rates, Salary Comparability
What are the factors that influence these key decisions?
What latitude do we offer those we ask to relocate?

 

Organizational Culture/Nature

What will employees expect based on our culture and in comparison to what other companies offer?
What are our expectations for results?
Survivor Training
What will we provide to support the remaining employees and assist them in moving forward?
What is the message to convey to remaining workforce?
Security and exit strategy on date of separation
Stress management and wellness strategy

 

Outplacement Firm Selection Considerations

Business Model vs. Counseling Model
Licensed Professional Counselors vs. Career Consultants
Degree of Customization Required
Flexibility
Reliability &endash; No homicides, suicides, or lawsuits
Spouse/Partner Involvement
Client Assessment
Program Specifications
Client Tracking
Metrics
Resolution Rate
Geographic Capabilities
Relationships
History
References
Programs and Services
Quality Control
Staff/program consistency
Creativity
Access to Retained/Contingency Search Firm Capabilities
Highest levels of service for budget authorized

 

Program Delivery

Location
Transition counselors on-site?
Time
Date
Duration
Individual/Group
Program Levels
Internal/External Coordinators

 

Transition Program and Client Evaluation

Return on Investment
Management
Separated Employee
Strengths
Weaknesses
Met Expectations
Flexibility
Responsiveness

 

In a recent interview, senior HR executive, Mark Esselman, Senior Vice-President of Human Resources at Pennzoil, told us what he looks for in an outplacement firm. He considers: history; relationships with outplacement firms; industry knowledge of the customer's company; dependability and reliability; past success rate; and highly favorable responses from individual clients served.

Esselman likes to hear testimonials from reputable organizations' decision makers, to learn how the event was managed from planning through final resolution for their employees. He believes that will give him a good measure of how the outplacement firm will assist him. In addition, he said that it is important that the outplacement provider is able to assist and interact effectively with employees at all levels. Esselman stated that he feels comfortable working with an outplacement partner that he is confident will provide a firm, yet supportive environment for his separating employees; one in which the clients are properly oriented and guided through the career transition process.

Equally important to the delivery of transition services is the information provided regarding client follow-up, delivered in regular, quantifiable and measurable reports. These reports enable Esselman to communicate the return on the outplacement investment to his management.

Esselman's overall goal is for former employees to remember the event as a time when the company took care of them by providing them with the professional services of a consistently effective firm which assisted them in a successful career transition.

Identifying an outplacement provider can be a tough decision. As you compare one firm to another, on the surface they may all look alike. You have several audiences to serve and very few HR executives find this part of doing business pleasurable. During this stressful event, you need an outplacement provider who will support you every step of the way. You will want a provider who can be flexible in working with you, yet provide all of the resources needed for you and your organization.

All outplacement providers are not the same. You will need the resources, expertise and support to successfully navigate through the tough terrain of downsizing. Look for counselors who are experienced in working with every level of employee, at multiple locations, in a variety of industries, to assist clients from day one of the event through day one of their next position. Whether the project is small or large, in one location or multiple locations, a downsizing or a plant closing, your outplacement provider should be poised to assist HR executives and staff. You will want programs that are flexible yet effective, and career counselors who are experts in the field, and who will work diligently to meet the needs of your client and your customer.

Susan R. Silvano is President & CEO of Career Management International, Inc. (CMI). CMI, a woman-owned firm, has been providing Career Transition and HR Consulting services since 1976.

 

For more information, please visit CMI at www.careermanagement.com or send email inquiries to info@careermanagement.com.

CMI is celebrating its 27th year in business. Career Management International, Inc. is a full service counseling and consulting firm which provides outplacement, dual career counseling, management interventions and career coaching, career alignment, outsourcing of human resources functions and school to work programs as well as training and career development services. CMI is headquartered in Houston and has offices throughout the United States. A woman owned company, CMI focuses its creative energy to provide customized solutions to businesses. A further introduction to CMI can be found at www.cmi-lmi.com.

Kingdomality® and all affiliated characters are trademarks and the property of Career Management International, Inc.®

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Career Management International, Inc., is a full service human resource development and consulting firm supporting the business of people. For over 25 years, the company has been an industry leader and provider of Career Transition and Outplacement Services to major corporations, federal, state, and local governments, health care organizations, manufacturing businesses, insurance companies, publishing firms, and academia.

CMI's corporate headquarters is located in Houston, Texas. The company is a woman-owned business and it maintains partnerships and regional offices throughout the United States, North America and around the world

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For Further Information Contact:

Career Management International, Inc.
235 West 18th Street
Houston, TX 77008
info@careermanagement.com
voice: (713) 623-8780
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