What does outplacement cost?

What is outplacement?

Outplacement is a type of career advice given in the case of redundancy. Employees who are forced to pursue their careers with another employer, through redundancy or restructuring, are given access to this coaching and advice.

To provide these outplacement services a business brings in an outplacement agency, which sees the process to a successful conclusion. One of the things that the agency will do is develop an outplacement pathway, in which a redundant employee is helped to define clear goals and ambitions by his coach. Another area covered is that of actively putting the coachee's strengths and skills to work. This is done by means of job application training and taking part in a variety of workshops and info sessions. In other words, the redundant employee is given the tools needed for a successful change of career.

What does outplacement cost?

What price tag does this sort of outplacement pathway carry, and who pays? The employer will generally cover the bulk of the costs. In some cases, the price of outplacement coaching is fixed by the law. In the case of redundancy with 30 weeks’ severance pay its value should be around 1/12th of the employee's gross annual salary in the calendar year preceding redundancy. Gross annual salary includes salary and benefits as per 31 December in the year preceding redundancy. If it all sounds a little theoretical, we offer an example below by way of illustration.

Example

• A marketing coordinator is made redundant in 2020 as part of a restructuring programme.
• Her employer decides that there is no need to fulfil her 35-week notice and offers severance pay.

As she is entitled to more than 30 weeks’ notice, her employer is duty-bound to offer outplacement. In 2019 the marketing coordinator had an annual gross salary of €45,000. In this scenario the employee is entitled to an outplacement pathway to the value of 1/12th of this figure, or €3,750. This statutory provision is really just an indication for the employer.

For a more accurate picture of the options under a budget of this size it is best to contact an outplacement agency. Hudson focuses on quality and fit when deciding an outplacement formula. Several parameters have to be taken into account. In other words, the cost depends on a number of variables, such as experience level, position and seniority.

Our outplacement formulas

Everyone is different, and for that reason Hudson applies 3 outplacement formulas, all of which can be tailored and fine-tuned to suit the coachee, based on goals, needs and role.

Each programme is run by an experienced coach. After an initial meeting and emotional support the coach helps identify the redundant employee's expectations and ambitions, and together they come up with an action plan to find a suitable new job in shortest delay.

• Core: this formula includes 60 coaching hours, deliverable over a one-year period. The programme satisfies the minimum requirements of the Belgian outplacement legislation.
• Upgrade: in this package the focus lies on junior-executive to senior profiles, and a programme is designed specifically with the coachee in mind. This formula includes an unlimited number of hours, also deliverable over a one-year period.
• Senior: this formula is designed for senior, key-expert and management profiles. Here too, a specific programme is developed and the unlimited hours must be taken within one year of the pathway's commencement.

Each formula comes with its own guarantee formula. In other words, Core has a guarantee of three months, Upgrade six months and Senior nine months. Effectively this means that should something go wrong within three, six or nine months of starting a new job, the remainder of the outplacement pathway can be taken up without additional charge provided the one-year period has not expired.

As a side note, not everyone is entitled to outplacement services. Anyone who is entitled to 30 weeks’ notice or severance pay covering a period of at least 30 weeks qualifies, regardless of age. Those who are entitled to less than 30 weeks’ notice, but are at least 45 years of age and have at least 1 year's uninterrupted service, are also entitled to outplacement. All employees who are made redundant through restructuring are entitled to outplacement services, irrespective of age and seniority (with the exception of employees under fixed term contracts, for whom voluntary outplacement services are provided).

As everyone is different and every outplacement pathway is different there is no standard answer as to the actual cost of outplacement. The law provides something of an initial indication, but for the true cost it is always best to contact us beforehand.

Want to know more about outplacement or the price of outplacement? We will gladly tell you in person.