OUTPLACEMENT BY SUBSCRIPTION — BACKGROUND
Serious Value: Outplacement by subscription offers unique benefits, cost
savings and fixed budgets
About Subscription-Based (On-Demand)
Historical outplacement models typically charge employers a per-user fee at the
time of service. Outplacement by subscription is a very different concept. It isn't
dependent upon individual user counts, but rather more global numbers including
total employee population and the desired coaching hours per user. It's on-demand
outplacement that give you in control over virtually every aspect of your outplacement
does it Reduce Cost?
Subscription-based outplacement generally costs far less than traditional fee-for-service
models, and without any compromise in service. To understand why, let's dig a little
into how an outplacement firm operates and discuss the economic rationale for offering
subscription-based outplacement services.
One of the key challenges for outplacement firms is the varying volumes of service
they provide. Workforce reductions are difficult to predict and planning for them
can be challenging.
Like other service providers who operate in competitive markets, outplacement
firms are always trying to guess which prospects in their sales pipeline are likely
to move forward and when. They must deal with issues like the "sure thing" that
doesn't materialize, or the "long shot" that becomes a customer and wants to start
right away. Sales cycles, demos, scope definition, negotiations and a host of other
issues require time and resources - all before the first outplacement services can
Also, when an outplacement firm gets a new customer, they need to assign a competent
account manager and other resources right away. This means they must always have
some extra capacity that is ready to go. The extra capacity (sometimes called "bench
time") can cost a lot of money. That cost, of course, gets passed along to customers.
Subscription-based outplacement mitigates fluctuations in support requirements,
thereby reducing bench time and its attending cost.
By offering subscription-based services, outplacement firms can level out their
workloads and their cash flows. In many cases, all of the up-front work (scope definition,
negotiations, planning, customization, branding, setup, communication plans, etc.)
is completed well in advance of the time it is needed. This avoids the sometimes
challenging and time-critical work associated with the attainment of new customers;
especially those with large numbers of separating employees. These efficiencies
and cost savings translate into lower costs for customers.
Another unique feature of outplacement by subscription is its ability to reduce
an organization's unemployment compensation (UC) costs. Subscription-based outplacement
can help up to 100% of an employer's base period employees get or stay employed.
This can improve the employer's UC experience, thereby reducing their UC tax rate.
Core savings can be substantial. Organizations with lots of turnover or seasonal
employees can benefit even more.
There's more ... it takes more than just a subscription model to provide extreme
value. We've built a lot of cost savings into our business model and our adaptive
outplacement product. It's the combination of these enabling factors and our business
philosophy that bring it all together to create unbeatable value.
Additional Employer Benefits
Here are a few examples of some of the additional benefits you can derive by
choosing to purchase outplacement services on a subscription basis.
Virtually every HR manager has had experiences where a good employee had to be laid off due to no fault
of their own. They wanted to do something to help that person, but cost, level of effort, policy, timing
or other reasons precluded offering a formal outplacement benefit. With our subscription plan, these cease
to be issues. Outplacement services are always available; anytime you need them and for anyone you choose
to cover, regardless of reason or other factors. And fluctuations in volume don't cost you more money.
Most often, workforce reductions are initiated because of a business need to reduce expenses. Yet, traditional
per-user outplacement adds to your financial burden at the same time you want to reduce expenses. This can
cause you to forego outplacement altogether or limit outplacement to a select few. With our subscription
plan, costs are spread out and do not fluctuate with the volume of users. This eases your immediate financial
burden, reduces overall cost and eliminates any reticence to offer outplacement services to those in need.
Sometimes management decisions about workforce reductions are made in a hurry. An initial estimate of a
few separations spread out over a period of time has now turned into an immediate need for multiple separations.
With our subscription option, outplacement services are always available, regardless of volume. The newly
separating employees are simply added as new participants ... that's it.
Maybe you've historically had two or three (or two or three hundred, etc.) separations per year where you've
wanted to use outplacement services. Now, you're faced with a reduction-in-force of 10 times that number.
With the subscription option, no problem. Your outplacement portal would be already set up so all you need
to do is add the new participants. Scalability is not a problem. We would work with you to be sure we meet
the job coaching needs of the increased volume of users.
Maybe you don't anticipate any workforce reductions in the foreseeable future, but you want to be prepared
for contingencies. With our outplacement by subscription option, this is easy and inexpensive. For a small
monthly (or annual) fee, your custom and branded outplacement portal is set up and ready to go whenever
the need arises, and you end up paying much less than traditional plans.
Ready to get started? Give us a call or request a demo. We'd love to show you
what's possible for your organization. We'll provide quotes for both traditional
per-user and subscription-based outplacement so you can immediately see the difference.