February 13th, 2013

Outplacement Assistance Shown to Boost Salary in New Position

Author: Monika Morrow, SVP Career Management Services - Americas, Right Management

Jobless workers who receive professional outplacement assistance are much more likely to receive the same or higher salary in a new position than those who do not, according to a study by Right Management.


We reviewed data on more than 82,000 individuals throughout North America who since 2008 received outplacement services and obtained a new position. Nearly three-quarters of the job seekers either matched or got a higher salary than in their former position.


Of the more than 6,500 laid-off employees, for instance, who benefited from our firm’s job search programs and found new employment during the first eight months of 2012, 73%

matched or got a salary higher than they had in their former position.


The same pattern, moreover, held true since at least 2008.


Percent of program participants who matched or exceeded salary in new position



While our findings may not be surprising given the value of outplacement is well understood by most in corporate America. The actual numbers and percentages underline the value of giving laid-off individuals professional support during this time of crisis. It pays off.


There are many reasons why those getting outplacement help more often end up in better circumstances. The leading outplacement firms provide a rich variety of services to their clients, including individual coaching, job market research, guidance on positioning, technology enabled resources, guidance in person-to-person networking as well as coaching on interviewing, salary negotiation and personal branding via social networks.


The single most effective benefit is that job candidates in outplacement are encouraged to build and manage their personal networks as part of the process. People trust people, and person-to-person networking is nearly twice as effective in finding suitable new employment as any other approach and up to three times more effective than working with a recruiter or agency.


Job seekers who do not receive professional career help are at a comparative disadvantage. Recent U.S. Labor Department data on Americans who lost their jobs between 2009 and 2011 show that more than half ended up taking jobs with lower pay and one-third took pay cuts of 20% or more.


Individuals benefiting from outplacement services may enjoy other advantages in the job market. Often candidates come into our programs from well-known or respected companies or they may have quality work experience or skill sets, which can give them an edge in the job search process.


One Response to “Outplacement Assistance Shown to Boost Salary in New Position”

  1. Sukanya Badri on March 3, 2013 1:37 am

    Interesting read. In Asia, Outplacement as a concept is very new. Most likely due to the fact that very few performing employees were asked to leave, triggering the need for such services.

    But its good to see the measured impact of these services in the West where OP is a well established concept. Making the outgoing employee walk out with his spirit and dignity held high can be rewarding especially if he was well-performer.

    Great article!

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