Senior execs categorically reject commoditised programs
In the strongest signal yet that senior executives are fed up with commoditised outplacement programs, the release of the 2010 Outplacement Industry Benchmark Report confirms that time-limited programs in which candidates are supplied with self-directed hard copy material are being rated as highly ineffective.
“While senior executives are a pretty resilient bunch, there’s no question that based on their rating of commoditised outplacement offerings, the experience has been rated as ineffective. We also found 72% of senior executives were active detractors of their former employers,” says Hugh Davies, Managing Director of Macfarlan Lane.
“In short, there’s a lot of anger amongst many senior executives about the limited outplacement programs they were given as they exited the firm. Further, they’re a group that’s not afraid to let others know about their experience.”
By comparison, whilst only a minority were offered open-ended programs, senior executives consistently rated their outplacement experience as effective when they had access to open-ended outplacement programs with a capable consultant (versus those offered time-limited programs).
“An interesting finding from the research was that the capability of the consultant was critical to the experience of the individual. Even where service providers were rated poorly overall, the outplacement experience with the firm was viewed as effective when a consultant of equivalent seniority and commercial experience was engaged face-to-face with the candidate,” says Mr. Davies.
The survey used a new methodology for rating the outplacement industry dubbed the ‘Net Effectiveness Score’ that rated the candidate’s perceptions of the effectiveness of the outplacement service provider in achieving the expected or stated career transition objectives.
“The overall Net Effectiveness Scores for outplacement providers were spread from very ineffective to very effective, with the service being provided by the industry in general rated as average,” says Mr. Davies.
The following factors (in order of priority) correlated strongly with high net effectiveness scores in services:
- Ability of Consultant to actively engage
- Good facilities provided
- Access to face to face coaching
- Ongoing access to consultant
- Understanding capabilities & strengths
High scores in overall program effectiveness correlated directly with high satisfaction scores in these drivers. The converse was also true.
“One of the great benefits of this research is that a clear set of criteria is emerging from candidates about what makes for an effective outplacement program, and understanding how money is best spent when using these programs for its senior staff,” says Mr.Davies. “Employers would be well-advised to review their selection of career transition provider based on these findings.”
The release of 2010 Outplacement Industry Benchmark Report is the outcome of research that involved rating the responses of 341 senior executives who participated in the survey via SixFigures.com.au, the executive jobs, news, career and networking site. The research was developed by ML Career Development Research (a division of outplacement and career transition firm Macfarlan Lane) and independently analysed by strategy planning and market research consultants Sandra Beanham & Associates.
To receive a copy of the 2010 Outplacement Industry Benchmark Report please visit the ML Career Development Research website or contact Hugh Davies at Macfarlan Lane on 1300 852 788.
