There are a lot of things to consider when shopping for outplacement. We go over many of them here. However, what should outplacement services cost? How do you know you’re getting a good deal?
To answer this, we need to examine how much typical outplacement services cost over the long and short run, factors that many organizations seem to ignore.
Here's a quick calculator that can help you with your initial evaluation:
Okay, on to the topic at hand.
Outplacement Services Cost: Evaluating What You Get For Your Money
When buying outplacement you want to make sure you're getting everything you possibly can for the amount spent. That’s obvious. But what is it about a provider that makes them the right fit for you?
Well, all outplacement service providers will offer you the same service: a way to get your outgoing employee back to work in as little time as possible. However, the process involved is what you need to examine thoroughly if you want a good deal.
Do they make providing the service harder for your exiting employee? Are they really using all of the technology available to them? Does the firm have a high placement rate? Do they only operate in certain geographical areas? These questions need answering before you choose which firm to go with.
Not only will this let you figure out if the firm will be successful in placing your employee, it also hints at how much the service will cost.
Term Limits Can Waste Your Money
While understanding how the overall outplacement process works will greatly improve the chances of you getting more for your dollar, there’s one thing you should truly avoid: term limits.
Like any other service provider, outplacement firms love term limits. Basically, this means that if your employee isn’t placed in a set period of time (typically three months or so) they are kicked out of the program, leaving them to go it alone.
What this means for your pocketbook is that you spent money on a service that didn’t work.
While this is bad for you, on a financial level, it’s even worse for the employee who is now on their own to find a new job and - after three months - are in desperate need for a paycheck.
At Careerminds, we do not have time limits on our services, meaning that we will work with your employee until they are placed. In fact, we are the only organization to do so. Every other outplacement firm uses term limits to ensure that they do not ‘waste’ time on employees who are having a tough time finding new work.
We think that’s wrong. After all, why pay for a service that you aren’t sure will even work? You wouldn’t do that for your cable provider would you? Why do it for your employees?
Consider Retainer Fees
Another common practice among traditional outplacement firms is the use of a retainer fee.
Though you probably already know, retainer fees are what firms charge to keep your HR department as a customer over a longer period of time, allowing you to use their services when you need them in exchange for a recurring payment.
These costs should be weighed to see if your organization will benefit from keeping the firm around in the long run.
There is some good news, though. Here at Careerminds, we do not charge retainer fees for our services. We will work with your organization whenever you need us to, charging per service used not for just having the option to use it.
In the long run, this approach saves you a giant chunk of money that can be used elsewhere in your organization. Plus, it makes us a strategic partner that can handle all of your outplacement needs in the future without any downsides.
Outplacement Services Cost: An Overview
To wrap it all up, outplacement services cost various amounts depending on whether or not the firm you decide to go with has extra fees. If they charge for retainer, the cost of outplacement can rise dramatically as the years tick by.
Also, term limits should be avoided at all costs, especially if you have a firm on retainer because that means you are paying them for their service even when you aren’t using it and when you do, you aren’t even sure if it will work. In short, it’s a waste of money.
At Careerminds, we do not use term limits or charge a retainer fee, making our services cost significantly less than our competitors. Combine those money saving techniques with our next-gen placement platform and virtual coaching strategies and you have a well-rounded, affordable firm.
Interested in learning more? Check out a demo today: