Companies are reducing headcount, trimming travel, postponing capital purchases--anything they can think of to survive in the current economy
San Jose, CA (Vocus) September 22, 2009
Companies undergoing layoffs can save big on outplacement costs by choosing RiseSmart, according to data from a recent survey. The 2009 survey by the Institute for Corporate Productivity (i4cp) shows that employers are spending an average of more than $5,000 per executive or manager to provide external outplacement support for a period of three to six months - more than double the cost of RiseSmart Transition Concierge outplacement service.
"Companies are reducing headcount, trimming travel, postponing capital purchases--anything they can think of to survive in the current economy," says Sanjay Sathe, founder and CEO of RiseSmart. "In this environment, it simply doesn't make sense to waste money on overpriced outplacement services. It's time for employers to take a closer look at what they're paying for. Services like grief counseling and office space, for example, do little to help workers with their most pressing need - finding a new job."
An Aug. 20 Wall Street Journal story highlighted RiseSmart as a low-cost, high-tech alternative to traditional outplacement providers, citing a Fortune 500 client that chose RiseSmart after an unhappy experience with a pricier firm.
According to a survey of 355 employers by the Institute for Corporate Productivity, the average employer spent $5,574 per employee to provide between three and six months of external outplacement support for its laid-off executives, and $5,052 per employee to provide between three and six months of support for its laid-off managers. These figures represent more than twice the per-employee cost of RiseSmart's services.
"Traditional outplacement firms charge too much for 'soft services' that fail to deliver results, while RiseSmart combines sophisticated technology with one-on-one support to help laid-off employees find jobs faster," Sathe said. "CFOs and HR executives should begin demanding more - for less. "
RiseSmart, based in Silicon Valley, is transforming the way companies provide outplacement services and individuals use the Web to find jobs. The San Jose Mercury News says, "RiseSmart typifies the valley's knack for using technology to disrupt standard business practices." RiseSmart combines sophisticated technology with one-on-one support to help displaced employees and other jobseekers find new jobs -- fast. For more information about RiseSmart, visit the company's Web site at http://www.RiseSmart.com.