Socially Responsible Outplacement - U.S. Bureau of Labor Statistics Findings Highlight the Need for Outplacement Services

    SAN DIEGO, CA, October 21, 2014 /24-7PressRelease/ -- A U.S. Bureau of Labor Statistics (BLS) News Release shows displaced workers need help getting reemployed. New outplacement models and payment options make it easier for employers to lend a helping hand.

The Need

In August, the BLS reported that from January 2011 through December 2013, 4.3 million workers were displaced from jobs they had held for at least 3 years. An additional 5.2 million persons were displaced from jobs they had held for less than 3 years. In January 2014, only 61 percent of the displaced workers were reemployed.

Displaced workers are defined as persons 20 years of age and older who lost or left jobs because their plant or company closed or moved, there was insufficient work for them to do, or their position or shift was abolished.

Reemployment rates for older workers and women were lower than for younger workers and men. There were additional disparities based on race, industry, occupation, geography and earnings. In a separate report, the BLS reported that roughly 40% of those unemployed have been without work six months or longer.

While some displaced workers are no longer in the workforce, the vast majority could use help in finding a job. In the past, outplacement services, which help displaced workers get reemployed, were expensive and often limited to higher-paid individuals. This left a large portion of the workforce to fend for themselves.

Solutions

Changes in worker preferences and the use of new technologies are bringing outplacement out of the executive suite and into the mainstream. Older outplacement models are being supplanted by modern approaches that provide broader coverage at substantially less cost, but continue to provide personalized support.

This is good news for employers and employees alike. The ability to contribute to optimum employment is good for the country, good for business and especially good for displaced workers and their families.

The latest adaptive outplacement models give employers greater control over plan design, coverage and cost. They capitalize on the latest technology to deliver highly personalized content, tools and learning paths based upon discrete employee needs.

New subscription-based outplacement plans go even further by providing the lowest cost ever. That's because it is more cost-effective to pay monthly premiums than to pay for episodic events. It spreads risk and costs among many employers, and has the added benefit of providing on-demand coverage regardless of reason for separation or type of employee.

Outplacement services continue their march into the mainstream. Full maturity of the industry will likely occur then outplacement services are a part of every employer's standard employee benefit package. Today's subscription-based model makes that possible, but there is still more that can be done.

Ultimately, employers will guide outplacement's evolution. Social awareness and increased sensitivity by employers to the needs of their displaced employees will influence how outplacement vendors design and price their services.

Employers now have more choices and can vote by walking away from vendors who don't meet their needs for coverage, quality and value. It's the socially responsible thing to do.

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