Outplacement pricing is a method of pricing where the price is quoted as a rather small percentage of the employee’s annual salary. Outplacement is a form of career-transitioning service for recent or departing employees, people looking for new jobs, entrepreneurs who want to leave their businesses, and anyone else seeking change. The main goal is to help them with their transition from one company to another by providing various services such as coaching and training programs.
Benefits of outplacement pricing
- As companies get more competitive, they outsource certain tasks, including outplacement. This allows them to control the costs as well as gain more flexibility.
- Due to outsourcing, companies can save money by not hiring any additional agents on a full-time basis. Instead, they opt for training and development for their existing employees.
- Companies do not have to invest in expensive facilities or hire full-time staffs for such tasks like outplacement because they can outsource these services to personnel that are personally trained by their own handpicked experts and agents of a trusted outplacement company.
- Outsourced outplacement services are offered in addition to existing training programs and existing staff. This way, the company does not have to spend much money on new training programs and facilities for its employees.
- It is costly to fire employees, but outsourcing it allows companies to avoid this cost altogether. They can retain the services of their outplacement agents even after a person leaves the company. This reduces the risk of being sued by former employees who claim they were wrongfully fired or terminated from their employment contracts.
- Outsourcing allows companies to outsource such services as human resources and management. This way, they can save time and money while not losing quality or integrity.
- Companies save money by outsourcing such services as outplacement that they could have spent hiring public relations firms, brand consultants, market researchers, accountants and many other services which are typically expensive.
- Outsourcing gives companies more control and flexibility in assessing their employees’ performance and making decisions about staff reduction, promotions or termination of the employees for poor performance.
Who need outplacement pricing
- Outplacement Pricing can be used by any organization and not just for companies who outsource their outplacement services. Any company that wishes to control its costs as well as gain flexibility can use this pricing scheme.
- Businesses are outsourcing more and more of their tasks and processes. This means that they need to find other ways to do it without sacrificing quality or integrity.
- Large multinational corporations or companies who have a network of affiliates or branches in different regions need this type of pricing scheme because they need to maintain consistency even when outsourcing outplacement services has proven to be fruitful in terms of cost control and flexibility.
- It is critical for companies to consider the unique situation of their employees in every task outsourced so that they can effectively evaluate performance, provide feedback, and decide on promotions or termination for any employee for poor performance. Otherwise, outplacement could end up costing more money than it is worth because the company did not have any proper plan for evaluating performance or providing feedback regarding performance issues.