Outplacement experienced negative revenue growth globally at the start of the Covid-19 pandemic — unlike in previous downturns — as governments in certain countries were able to stall layoffs and dampen demand for such services, according to the new “Outplacement Landscape 2021” report by SIA. Since then, outplacement has returned to growth.
SIA estimates the outplacement market revenue grew 7% in 2020 to $2.3 billion worldwide.
Outplacement is defined by SIA as: “A service to guide a terminated employee of a company to a satisfactory new position or career through the provision of short- or long-term counseling and support services, on a group or individual basis, most often paid for by the terminating employer.”
Benefits of outplacement to employers include protecting the company’s brand and reputation, lowering unemployment insurance premiums and mitigating the risk of litigation.
The report notes there is confusion with the terms “outplacement,” “career transition” and “career management” sometimes used interchangeably. However, there are subtle differences between each term. The report uses the term outplacement in its title as that is where a majority of the revenue from these such services are derived.
SIA collaborated with the World Employment Confederation’s career management group in the production of the report.
SIA corporate members can download the full report.