Outplacement consulting for professionals and managers will increase in 2021

While in the first Corona wave in the spring, layoffs were still rather slowed down, partly thanks to short-time work, and companies were still holding back with layoffs, the Swiss industry association for outplacement ACF (Swiss Association of Companies for Personal and Organizational Change) has observed a significant increase again since September. It seems that a certain market and industry correction has accelerated. As further reasons, the ACF sees that some companies have brought forward planned reorganizations, but some have also put their restructuring plans on hold precisely because of Corona, while at the same time investing somewhat less in existing employees.

Outplacement consulting will increase

The Swiss outplacement industry association therefore expects a second wave of redundancies in the winter half-year, although the extent is still uncertain. Depending on the development and also the possible tightening of the current measures by the federal government and the cantons, the labor market will subsequently also recover with a corresponding delay. According to ACF, the demand for professional consulting and personalized services in the area of outplacement and newplacement, assignments and coaching, not least to avoid wrong decisions in recruitment or promotions, will therefore continue to increase.

Digitization accelerates job cuts or switch to new job profiles

According to the results of the ACF member survey, in addition to the ability to address the labor market professionally, the psychological aspects of work will become more important. The abrupt change in the world of work has accelerated trends such as flexible working, leadership accompanied by high emotional competence and further training in digital skills.
As is well known, the travel, event and catering industries are currently particularly affected. However, according to ACF experts, these are not the industries that can provide special support to their employees during separations. The outplacement association therefore expects that the situation will continue to worsen and that in 2021, when the federal government will no longer be able to provide equal support with measures such as short-time work, hardly any industry will be spared.

This is not always out of necessity, however, but also due to accelerated digitization, which will also lead to changes and job cuts or changes to new job profiles. Sectors and companies that have not yet restructured much in this respect or that still have a lot of work to do are therefore also likely to be affected, for example in banks, retail and administrative services, but also in the chemical or mechanical engineering industries.

Longer application processes for job-seeking managers?

According to the survey of members of the outplacement industry association, managers who have lost their jobs are expressing the same uncertainties and fears as in the past, only somewhat more intensely at present: the abrupt change in the labor market as a result of the Corona crisis is leading to longer application processes, fewer job advertisements, and more competitors. In many cases, people wait and see, and it becomes more difficult to re-enter the job market, especially for job seekers over the age of 50. The Outplacement Association is therefore currently registering an increase in outplacement consulting, especially for specialists and managers. So far, there are no indications that a sustainable solution will not be found in the near future. However, the search duration is about 1-2 months longer than the average values of the last few years in all age categories.

A lot of patience and high network activity required

What application strategy is needed now in the current Corona crisis for specialists and managers? For the experts of the Swiss industry association for outplacement it is clear: The job market is solid, but slowed down. Therefore, a lot of patience is needed, and for an active search the understanding of the social environment, creativity, initiative and flexibility, and especially a high level of networking activity. It is essential to make professional and active use of all channels on the job market, such as social media, advertisements, personal networks, headhunters, recruiters and spontaneous applications.

Professional outplacement counseling can help to get into the so-called "hidden job market" in addition to direct or accompanied job applications, because every outplacement counselor also has a large personal network of potential employers. According to ACF experts, however, it is more important that the person concerned learns how to activate his or her own network and thus obtain relevant information. Most of those affected are too shy and reserved in this respect.

Outplacement consulting as support for RAV?

As part of the federal government's 2020-2022 impulse program with measures to promote reintegration, the counseling services offered by the regional employment centers (RAV) for older people and job-seekers whose re-entry into the labor market is difficult are to be expanded and improved. According to the Swiss Outplacement Association (ACF), professional help and support from outplacement companies could also make a valuable contribution here, in addition to the projects of the cantons and the employment centers.

In particular, the measures in the area of location assessment for adults and integration counseling for older job seekers could be ideally implemented and supported by the competence of the specialized consulting companies in outplacement and newplacement. In addition to labor market capability checks, potential analysis and career counseling, a second opinion or more intensive counseling for future self-employment, coupled with a start-up, could also represent meaningful and individually tailored support offers for sustainable reintegration.

Source: ACF