CAREER TRANSITION IN A TIGHTENING ECONOMY

The imperative of high-value, low-cost outplacement programs

In today’s economic climate, marked by uncertainty and financial constraints, the employment landscape is experiencing significant shifts. According to Gartner’s 2024 Future of Work Trends, hiring becomes scarcer, ‘right-sizing’ prevails, and organisations are forced to tighten their budgets. Factors such as elevated interest rates, rising cost of living, and geopolitical tensions contribute to this challenging environment.

The Deloitte Access Economic Employment Forecast confirms a rise in redundancies, a decrease in job vacancies, and an increasingly competitive job market. As organisations prioritise cost containment over talent acquisition, retaining existing talent becomes paramount.

With a rise of redundancies across all industries and a tight HR budget – career transition solutions must adapt to the new reality. With budgets under strain and spending breaks enforced, there’s a pressing need for cost-effective initiatives that deliver tangible value. Organisations are rethinking their existing provider relationships and reevaluating the ROI, traditionally exorbitant fixed cost fees, and constrained program durations.

When selecting a career transition provider amidst a tightening economy, organisations should prioritise several key factors to ensure they receive maximum value for their investment:

Transparency of Fixed Costs
Firstly, transparency regarding the fixed costs of programs is essential, allowing organisations to budget effectively without unexpected expenses. Traditional outplacement providers are high-cost and duration-based and commonly yield low engagement during the defined program parameters.

Value and Mix of Inclusions
Additionally, the value of inclusions within the program should be carefully assessed, ensuring that they align with the organisation’s needs and the support required by transitioning employees. Programs need to include a blend of individual, group and digital experiences, catering to diversity, inclusivity and different transition options.

Choice Centricity
Empowered participant choice is crucial, enabling departed employees to choose the support they need when they need it. What’s here and now is a personalised transition experience, not a cookie-cutter one-size-fits-all experience.

Return of Unused Funds
Traditional providers make bucketloads of profit on the back of low engagement. Traditional career transition providers charge an exorbitant fixed fee based on program duration, and it is very difficult for the sponsoring organisation to claw back program costs once paid for. The option for the return of unused funds provides added flexibility and cost-efficiency, allowing organisations to optimise their budget allocation.

Program Durations
The career transition industry was built on program durations. Finally, considering the lifelong durations of programs ensures that support remains available to employees throughout their careers, offering ongoing assistance as they navigate future transitions. Look at career transition through the lens of ongoing career resilience and career management for this transition and every transition thereafter.

Career Money Life is here to shake things up. We’re different. On purpose.
✅ Say goodbye to hefty fixed costs and unclear ROI.
✅ Say hello to unlimited lifetime support, high-value, low-cost career transition, reimbursement of unused credit, and a contemporary choice-centric experience.

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