An ever-changing workforce landscape
Increased digitization and automation mean the skills required for the jobs of the new decade are very different to those needed five or ten years previously; a change that was likely accelerated by the pandemic.
As the cost of living crisis rages on, businesses and employees are both being impacted. Spiralling costs and supply chain pressures mean organizations are facing operational challenges, while a growing number of employees are having to seek extra work through the gig economy in order to manage rising inflation rates. And with layoffs and reorganizations on the rise, recent data suggests businesses are now beginning to feel the strain and are looking for ways to save costs.
A survey from ResumeBuilder.com found that nearly 40% of companies report likely layoffs in 2024, with cost-cutting as the top reason.
Outplacement programs offer practical and wellbeing support to employees facing a layoff to help them transition to new roles.
"In a climate of economic uncertainty, and with a jobs market experiencing a period of radical transformation, outplacement is an increasingly important tool to help employees and firms adjust."
The fluid pairing of workers with jobs also plays a vital role within the efficient performance of economies.
As we grapple with the dual challenges of immediate economic upheaval and longer-term shifts within the jobs market, the progression of outplacement is looking well attuned to the changes.
Tim GilbertManaging Director, Right Management UK
As businesses operate in a difficult economy, many will look to make efficiencies and ensure they use their employees’ skills most effectively.
Outplacement better enables businesses, workers and economies to transition and recalibrate - opening the door for real opportunity.
79% moved to a new role with the same or higher position
Flexible and remote working have cracked open the jobs market. Our data shows that workers transitioning between jobs are increasingly changing the sectors they work in.
49% of candidates who went through an outplacement program moved to a different industry, while many also changed career path with different roles. This trend of flexing to meet the demands of an ever-evolving jobs market is one that has accelerated in the past two years, and shows little sign of abating.
As a culture of career mobility has emerged, workers have become increasingly agile – a trend businesses should look to embrace. Businesses benefit from embracing this emerging culture of career mobility. Constantly working to upskill and develop staff means that teams can successfully meet the new opportunities within their companies. This will help to reduce the need to hire, minimize disruption, and increase workers’ employability, while priming outgoing employees for successful and quick outplacement.
While not every role can be performed remotely, for those that can, the shift to remote working means their options are no longer limited by location. People going through outplacement programs are increasingly finding that instead of having to relocate for a new position, the new job is coming to them.
And while sectors that have traditionally provided high levels of employment in the past are reducing their workforces due to the adoption of technology and slowing markets, others are on the up, responding to new demands. Businesses need an outplacement provider that can measure and evaluate the changing jobs market in real-time, so that they can respond to these shifts at speed.
49% of candidates who went through an outplacement program moved to a different industry.
Data and the ability to analyse it for a fast-moving jobs market is key to both employees finding new roles and businesses ensuring their workforce is ready for new challenges. This demand requires an evolution of the skills and insights outplacement provides.
In the short-term, that means giving firms greater insight based on analysis of bigger datasets and metrics. In the future, Artificial Intelligence (AI) and predictive analytics will help to make more accurate analytical decisions in real-time. The potential of these technologies is already being proved with technologies that draw on AI to identify the roles, sectors and skills for future success and improved career mobility.
Outplacement needs to adapt to fulfil the vital role it will play guiding individuals and organizations through career transition during a time of great transformation, helping create a confident, agile and valuable workforce, able to face the challenges of the future.
