Outplacement pricing is a strategy used by many companies to save money on employee benefits, headhunting and hiring practices. Employers often see it as a way to save money on benefits or through an understanding of the fact that certain processes cost more than others. But what exactly is outplacing and why should you care? The answer is simple: It’s when an organization outhires itself and loses its best employees. For example, suppose you run a restaurant. When you hire new staff, you might pay them at different rates – less for entry-level staff, more for high-end waiters etc. In this case, the company would call outprice them. When you outhire yourself, your staff feel they can get better jobs elsewhere without losing their former colleagues and coworkers.
WHAT IS OUTPLACEMENT PRICING?
Outplacement pricing is charging a higher rate for employees who are moving to a different location or job function. It is often a part of a larger strategy to reduce costs, optimize processes and improve the talent you have on your team. Outplacement pricing could be used to reduce the total amount of benefits offered to employees, reduce the amount of salary a new hire receives and/or reduce the amount of equity that an existing employee receives when they are laid off.
WHY SHOULD YOU CARE ABOUT OUTPLACEMENT PRICING?
A large portion of the hiring process is dedicated to understanding the needs and wants of your candidates. When you outsource the hiring process, you eliminate the opportunity to understand your best talent. This is a major bummer for many employers, especially those who prefer to do everything in-house. The good news is that there are a few ways to get around this. For example, you can have an in-house hiring manager who works with external hires. Alternatively, you can let the hiring manager do everything and have an outside person coordinate the process. This can work really well when there are a lot of internal candidates and you don’t mind having someone else interpret what your company culture is really about.
HOW TO IMPLEMENT OUTPLACEMENT PRICING
There are a few ways you can implement outplacement pricing. The first is to have an employee assistance program. This can be a great way to support employees who are dealing with personal issues or just want to get back to work. The program can provide confidential, 24/7 support. However, some employers are hesitant to use an employee assistance program because they worry that the employees will use the service as a “way to seek benefits.” That is why an outplacement pricing service is a much more accurate representation of how the service functions. You can have confidence that the pricing information you are using is accurate and unbiased. You can rest easy knowing that your best employees will be well taken care of.
Outplacement pricing is a strategy used by many companies to save money on employee benefits, headhunting and hiring practices. Employers often see it as a way to save money on benefits or through an understanding of the fact that certain processes cost more than others. But what exactly is outplacement and why should you care? The answer is simple: It’s when an organization outhires itself and loses its best employees.