IBISWorld Market Research
Outplacement services demand is higher during periods of adverse economic conditions, particularly when large companies are letting staff go.
Melbourne, Australia (PRWEB) December 15, 2013
Outplacement client companies generally engage a firm from the Outplacement Services industry in Australia during a restructuring and a period of staffing lay-offs. The client company will pay the outplacement company a fee to provide industry services to staff facing a career transition or employment change. These services are therefore provided at no charge to the employee. The sponsored employee is then provided with services, such as assistance to find another position, career guidance, resume writing advice, interview skills and other related services. These can be carried out within the client's premises or off-site at facilities and locations provided by the outplacement firm. Outplacement services demand is generally higher during periods of adverse economic conditions, particularly when large companies are letting staff go. These client companies then use industry services to assist former employees find further employment, as well as reducing the possible legal recourse of sacked staff. According to IBISWorld industry analyst Alen Allday, ”in addition, outplacement services are used to protect the company's image and brand from adverse publicity that sometimes surrounding staff lay-offs and the potential for former staff to criticise the company”.
In the five years through 2013-14, industry revenue is estimated to decrease at an annualised 1.6% to reach $136.9 million. “This decline is due to the industry previously having surged in 2008-09 as the global financial crisis negatively affected many Australian businesses, leading to increased redundancies and driving demand for outplacement services,” says Allday. The was followed by an industry slump in 2010-11 as economic conditions improved, and growth in industry revenue in the subsequent two years as the unemployment rate increased. A forecast 6.7% decline in 2013-14 will be due to lower unemployment and lower industry demand.
The Outplacement Services industry exhibits a medium level of market share concentration. Major players include Audrey Page Holdings Pty Limited, Donington Group Pty Limited, Directioneering Pty Ltd, Adecco Holdings Pty Limited and Manpower Services (Australia) Pty Limited. IBISWorld projects the industry will benefit from higher unemployment levels in the next five years. Higher unemployment is forecast in 2014-15 and 2015-16 with expected cuts in the public sector and a cyclical upswing in the unemployment rate. Improved economic conditions in subsequent years are expected to result in industry declines.
For more information, visit IBISWorld’s Outplacement Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Outplacement companies assist former employees of downsizing firms with career and employment advice and skills to find new a new position.
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