Have you thought about adding outplacement services to your resume business?
At some point, we all look for added revenue streams for our businesses.
It’s expected.
What you might be surprised to learn is that …
… offering outplacement services is a logical next step for many of us.
Resume writers already provide consumers with a cocktail of career services.
The same services are delivered by outplacement services.
The primary difference here is …
… instead of selling your services to consumers (B2C), you’re selling your services to companies (B2B) for their separating employees.
Companies retain the services of outplacement services for these prime reasons:
- To assist with employee relations
- Protect company brand/reputation
- Lower unemployment costs
- Concern for separating staff
Do you want a peek at an outplacement flyer? If yes, here’s an example of the outplacement programs offered by OIPartners.
Typical Services Offered by Outplacement Firms
Outplacement companies offer much the same services as resume writers/career coaches.
For example:
- Resume & Cover Letter Writing
- Career Steering/Management Services
- One-on-One & Accountability Coaching
- Job-Search Strategization
- Interview Training
- Salary Negotiations
- Group Workshops
- Train-The-Trainer Workshops
Some of these look familiar, right?
Of course, other deliverables can be made available. Such as access to:
- Membership Interface with Videos, Quick-Tips & Other Resources
- How-To Guides/Other Downloads
- Mailed Inspirational Books/PDF Book Copies
Advanced outplacement services go far beyond the above service offerings.
For example, GoldenCareerStrategies.com, an outplacement firm out of South Carolina, offers financial advisors, weekly roundtables, and licensed grief counselors.
Do you need to offer these services too?
Not necessarily. In fact, there are many that do not.
Why Offer Outplacement Services?
Resume businesses experience financial “peaks and valleys.”
This simply means: “swimming in clients” one month to “almost broke” the next.
The financial instability for resume writers can be stressful.
So, just a few outplacement contracts throughout the year can offer much-needed financial relief to your business.
Who Will Be Your Competition
I won’t lie.
There’s stiff competition in the outplacement market.
For example, there are many well-established outplacement firms including:
Your immediate thought might be that you’ll be okay.
You’re good because these established firms ONLY go after big contracts, right?
Nope. You’d be wrong.
These established firms prefer larger contracts.
Sure.
Who wouldn’t?
But, larger outplacement firms don’t turn away revenue from companies releasing small populations of employees either.
Are Bigger Outplacement Firms Better?
A major downside for affected workers working with large outplacement firms is the staff.
The “overworked” staff to be accurate.
CareerProInc.com wrote about a new career coach with Right Management who was assigned 60 people to coach. Like many of us, coaching is done by phone, email, and Skype. Juggling that many coaching clients at one time can be overwhelming.
I have empathy for coaches like these who are buried in clients.
I have empathy for the clients as well. The clients were assigned an overworked career coach.
What level of personal service do you think these affected employees receive?
Have Answers to These Questions
Employers will ask questions. Thankfully, these (or forms of them) are the most common:
- What outplacement services do you provide? Are your packages customizable?
- Do you offer one-on-one coaching or do you prefer group coaching?
- What certifications and qualifications do you have as an outplacement agency?
- How much do your outplacement services cost?
- Do you offer varying service lengths?
- What is your guarantee?
More sophisticated outplacement firms give clients monthly updates on employee progress.
So, don’t be surprised if the company asks:
- How often will I get updated on employee progress?
Costs Associated With Outplacement Services
The Wall Street Journal reported in 2009 that the average cost of outplacement was $3,589 per employee. [Editorial Note: we were unable to locate a recent reputable source with last year’s average. If you know of one, let us know.]
Like you would suspect, there are more affordable options out there as well.
Here are a few outplacement services that publicly publish their fees:
Quest Outplacement offers 5 different outplacement packages with services ranging from $850 to $2,950.
What about proposed fees for executives?
The average outplacement costs for executive employees are higher.
For example, your fee for working with high-end managers and executives could be upwards of $7K.
As a comparison, your fee for an hourly employee could be as low as $500.
Prepare For Capped Budget Restrictions Too
You may find yourself in front of a company that has capped what they are capable of spending.
For example, employers may want only to invest a set amount (i.e. $500) on each separating employee.
An arrangement like this can make accounting a nightmare for you.
However, don’t dismiss the opportunity too quickly.
If you can make it work, there’s profit potential from employees as well.
Separating employees often use what the employer offers and spends their own money on additional needed services.
3 Factors to Base Your Outplacement Pricing
1. How many and at what career levels you’ll be working with?
You’ll want to know the answer to this question before providing ANY proposal.
Service deliverables will vary based on a career level.
Professionals at higher career levels, for example, will likely take more time and resources.
2. How long does the employer require you to work with the separating employees?
Do yourself a favor and put a timeline on your services in writing.
This way, you don’t have clients returning months or years later asking for company-paid services that should’ve expired long ago.
The timeline for outplacement services ranges from 3 to 6 months.
A resume, cover letter, and LinkedIn profile take less than 30 days.
Job exploration and career coaching take weeks — sometimes months.
Job-search services take the longest, which will account for most of a 6-month timeline.
3. What services does the employer ask that you deliver?
Services can range from a simple resume to the whole “career shebang.”
For example, one employee might only need interview coaching, while another needs resume writing and job-search services.
Offer Service Variety
It’s important to offer an array of career services to your outplacement offerings.
So, you can customize your pricing to better fit the company’s budget.
How To Best Handle Payment
Since the company is paying for your outplacement services, do you simply issue an invoice and await payment?
Or can upfront payment be required for corporate clients as well?
The best solution is to collect all monies owed upfront.
I find this is a better policy for small outplacement contracts (e.g. less than $2K).
For larger outplacement contracts, collecting 50% upfront (retainer) is expected.
You have two options for collecting the remaining balance:
OPTION#1: Collect the remaining 50% at a specified time; e.g. 30 days.
OPTION#2: Opt for milestone payments. For example, you collect 50% at the time of contract signing. Bill another 25% after 30 days and another 25% another 60 days.
Be cautious of SINKING SHIP businesses.
Companies with financial struggles and/or bankruptcy rumors are huge risks for you as a service provider.
In this situation, collecting 100% upfront is the BETTER financial choice FOR YOU.
Negative Sides of Outplacement
Beyond stiff competition, the folks you work with might not be happy.
They’ve been fired or laid off due to corporate downsizing, staff restructuring, or some other messy situation.
They’re going through something that’s unfair and would be unsettling for any of us.
So, having “thick skin” and being informative (yet stern at times) will enable you to help those troubled clients and keep you from getting bad reviews and feedback from clients.
Remember the newly hired coach we talked about above who found himself with SIXTY COACHING CLIENTS dumped in his lap?
Clients get ignored when dumped onto an already overworked career coach, resume writer, etc.
This issue alone might be the reason outplacement services get unfavorable online reviews.
Marketing These New Services
Marketing to businesses is different than marketing to consumers.
The best option here is NOT to wait until the company announces a layoff.
But, catch them BEFORE they do.
This means phone calls, postal mailings, and some online promotions (e.g. PPC and including outplacement service page to your website).
To keep your marketing from becoming overwhelming, start with promoting your outplacement services to businesses in your area.
Another option is to advertise in the newsletters of local Chambers of Commerce.
Produce business cards and brochures to mail to select area companies.
Printing companies, such as VistaPrint.com, are very affordable for these projects.
You might be thinking, “Geesh, offering outplacement services is going to be time-consuming and expensive.”
You’re right.
However, outplacement contracts can mean thousands of dollars each year in new revenue for your business.
Once you have the business cards and brochures made, your ongoing costs are exerted time and postage. 🙂
That’s worth thousands in new revenue, right?
Oh, and it’s worth mentioning that your mailings should either go to the HR Director or Head of Procurement.
Procurement staff research and select service providers (e.g. outplacement agencies) too.
On occasion, the CFO may be making the decision.
More Resources
Example of LHH Outplacement Contract
Suggested Clauses for Outplacement Services
Outplacement Agreement – Terms & Conditions from Bemanningsforetagen
