Banks suffer outplacement fatigue
The drive to cut costs is reducing laid-off employees' chances of finding a job in the toughest employment market for years.
Alfie Noakes, chairman of outplacement firm Mark to Market, said: Some firms are not willing to pay anything for outplacement, especially if they have had little experience of letting people go in the past. Others will just pay 1,000 (e 1,560) per person, which buys a limited service.
He added that big investment banks were continuing to offer staff outplacement packages, typically lasting three months: But the price they're willing to pay has often fallen - a year ago, it might have been 5,000 per person and now it could be 4,000.
A few banks pay even less and the service received by some out-of-work staff has deteriorated as a result, another outplacement executive said. Some outplacement firms treat staff like commodities - they process them en masse, instead of giving them individual attention, he said.
Outplacement typically includes career guidance from consultants, as well as help with CV writing and interview technique.
Philip Beddows, a consultant at BG Careers, said: Banks are certainly looking at their outplacement budgets. But, in the case of senior people, the cost is small compared to the total cost of laying them off and banks are still willing to pay for it.
Andrea Eccles, joint managing director of outplacement provider Fairplace Consulting, said the average time for finding a new job had risen over the past year. Someone who a year ago might have found a job after 11 weeks could now have to wait 14 or 15 weeks, she said.
