Outplacement is unfamiliar territory for many employees, especially if you work at a small company or an SME organisation. Yet, precisely in that context, a good outplacement programme can make the difference between an uncertain transition and a confident step towards a new career. In this article, we answer the most frequently asked questions about outplacement for small businesses and SMEs, so you know exactly where you stand.
Whether you are an employee facing reorganisation, or an employer looking to say goodbye to an employee in a proper way, the information below will give you a clear picture of how outplacement works, who pays for it and what benefits it offers.
What is outplacement and when is it used?
Outplacement is a counselling programme that helps employees transition to a new job or career direction after losing or leaving their current job. The pathway combines career coaching, self-insight and practical job search support to best prepare the employee for the job market.
Outplacement is used in various situations: in a reorganisation, in dismissal by mutual consent, in an expiring contract that is not renewed, or in a situation where employee and employer together decide that a new direction is more appropriate. In all these cases, outplacement provides structure and direction at a time when it is desperately needed. It is not a sign of failure, but rather an investment in the employee's future.
How does an outplacement process work for a small company?
In a small company or an SME organisation, an outplacement process works in essence the same as in large corporates: the employee receives personal guidance from a career coach to find direction, position themselves in the labour market and take concrete steps. The difference is often in the tailor-made approach and direct cooperation between employer, employee and coach.
The phases of an outplacement process
A good outplacement process usually consists of several phases. First, the focus is on self-insight: who are you, what are your talents and what do you want? This is followed by an exploration of the job market and drawing up a career strategy. You then work on practical skills, such as writing a strong CV, conducting job interviews and networking. Finally, the coach guides you in the actual step towards a new job.
In smaller companies, the process is often more flexible. There is usually more room for personal contact and the coaching adapts to the pace and needs of the employee. This sometimes makes outplacement with SMEs more personal and effective than with large-scale processes.
Who pays outplacement costs in SMEs?
In most cases, outplacement costs are paid by the employer. This also applies to small companies and SME organisations. Employers take on these costs as part of a severance or settlement agreement. It is common for the outplacement fee to be included as a separate item alongside any other severance payments.
In some cases, an employee may decide to pay for a pathway themselves, for instance if the employer is not willing to do so but the employee wants guidance. Sometimes a collective labour agreement (CAO) reimburses part of the costs, or sectoral funds are available. It is always wise to discuss this well in advance and put it in writing.
What is the difference between outplacement and second track?
Outplacement and second track are both forms of career counselling, but they are used in different situations. Outplacement focuses on employees who lose their jobs due to reorganisation or dismissal and guides them to a new position outside their current organisation. Second track is a legally required reintegration process for employees who cannot return to their own job or with their own employer due to illness or limitations.
An important practical difference is that second track stems from the Gatekeeper's Act (Wet verbetering poortwachter) and is initiated when reintegration with one's own employer (first track) proves impossible. Outplacement is voluntary and is initiated on the basis of agreements between employer and employee. Both processes can complement each other, but have a different legal and substantive basis.
What are the benefits of outplacement for employees?
Outplacement offers employees tangible benefits both personally and professionally. It helps you to still work in a structured and goal-oriented way on your next step during an often emotionally charged period, with professional support beside you.
The main benefits for employees are:
- Self-insight and direction: you discover what you really want and what you are good at, so that you make conscious career choices.
- Confidence: a coach helps you (re)discover your own capabilities and enter the job market with more self-confidence.
- Practical skills: From a convincing CV to strong job interviews: you will learn how to present yourself well.
- Network and market knowledge: you will gain insight into how the current job market works and how to use your network effectively.
- Sustainable employability: Outplacement goes beyond finding a new job; it lays a foundation for a career that suits you in the long run.
For employees in SMEs, outplacement is especially valuable, as they are sometimes less accustomed to formal career procedures and the personalised support can make all the difference when transitioning to a new working environment.
How to choose a good outplacement counsellor for your SME?
A good outplacement counsellor for SMEs combines personal attention with proven methods and has experience with the specific dynamics of smaller organisations. Consider the following criteria when making your choice:
- Bespoke approach: Choose an agency that does not offer standard programmes but tailors the pathway to the individual employee.
- Experience and background: Ask about the background of the coaches and the methods they use.
- Scientific rationale: Agencies working with proven methodologies offer more certainty about the effectiveness of the pathway.
- Personal contact: A permanent coach who accompanies the employee throughout the process ensures continuity and trust.
- Flexibility: especially in SMEs, it is important that the trajectory matches the employee's pace and situation.
Also, always ask for references or experiences of other SME organisations, and discuss in advance what the process entails, how long it will take and what the intended result will be. Transparency is a good sign.
How Nieuwkans helps with SME outplacement
At Nieuwkans, we believe that everyone is entitled to personal coaching that truly suits them, regardless of the size of the company you come from. We offer outplacement for employees on a fully customised basis: you and your coach together determine the pace, direction and approach of the programme.
What we offer:
- Personal career coaching in five carefully structured phases
- Scientifically-based insights through the BrainsFirst methodology, revealing your natural talents and cognitive behavioural preferences
- Guidance on self-awareness, labour market exploration, CV and application skills
- Attention to sustainable employability so that you continue to enjoy and succeed in the long term
- Personal attention from our Utrecht location, with coaches guiding you throughout the process
Want to know what we can do for you or your staff? Contact us and we will be happy to discuss the possibilities, with no obligation.