Serious Value: Outplacement by subscription offers unique benefits, cost savings and fixed budgets

Outplacement by Subscription


About Subscription-Based (On-Demand) Outplacement

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 services.

Subscription-Based Cost SavingsHow 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 be provided.

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.

Subscription-Based Cost Savings

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.


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