CIPD - Career and outplacement consultants

Learning, training and development

Revised August 2009

This factsheet gives broad introductory guidance. It:

outlines CIPD’s recommended best practice for individuals and organisations providing career and outplacement consultancy services
provides a glossary of commonly used terms and the definitions adopted
includes the CIPD viewpoint.

Introduction

There has never been a more critical time for career and outplacement advice. As organisations downsize and individuals are forced to re-examine their careers HR professionals whose organisations are seeking to provide information advice and guidance, themselves need advice if they’re to use these services effectively. A lack of regulation and consistent accreditation has meant that the services delivered by consultants in the career and outplacement industry vary in range, depth and quality and can be confusing for the individual, the provider and the employer alike.

This factsheet aims to help and clarify the judgements of individual practitioners seeking to purchase the services of companies or individuals offering career and outplacement services. It contains recommended best practice which, while voluntary, individuals (particularly CIPD members) and organisations providing services should seek to implement and, where appropriate, refer to in their literature describing their services. However, whilst it represents an overall CIPD viewpoint on principles, it is not intended to be a substitute for detailed good practice policies adopted by individual organisations.

The provision of career guidance is often undertaken when individuals might be at their most vulnerable and uncertain. For that reason, the fundamental principle governing the advice given in this factsheet is that the whole range of services covered must be delivered with the highest level of individual and professional integrity. More information about redundancy issues generally can be found in our factsheet on redundancy.

Go to our Redundancy factsheet

It is also important to ensure when shopping for providers that we bear in mind that we ensure the skills and capabilities can meet the need of the employee who is being counselled. A firm honed to provide executive outplacement might not be able to help with displaced power engineers for example, whose needs may be different.

General principles underpinning all services

When assessing potential service providers, it is useful to examine the manner in which they conduct both their business and their professional relationships with clients. It is suggested that the following should be a minimum requirement for all companies and individual consultants. .

Business relationship

Business relationships with clients include issues like advertising, the contractual relationship and fees/payment.

Advertising

The content of all advertisements and public relations material should be unambiguous, accurate, and capable of being verified and comply with all the legal requirements.
All oral representations to prospective clients will be unambiguous and accurate.
All claims regarding past performance of a consultant or consultancy will be capable of verification.

The contractual relationship

The contractual relationship and services to be made available (including their duration), will be agreed and confirmed in writing. This will form a contract between the consultant or consultancy and the client.
Any variations to this contract should be discussed in full with the client and agreed in writing.
The client will be provided with a signed copy of the contract for their records.
The contract will run either for a specified length of time or until the individual is re-employed or becomes self-employed.
Where an individual becomes self-employed the assignment may be concluded if the consultant can demonstrate they can no longer be of assistance. Such a decision must only be taken after the consultant has exhausted every reasonable possibility of practical help and in full consultation with, and with the agreement of, all parties.
The consultant or consultancy should make it clear in the contract that they cannot guarantee successful placement into new employment.
Any other guarantees must be set out in advance in the written contract.
The consultant(s) who will provide the services will be identified in the contract and any subsequent changes will take place only in consultation with, and with the agreement of, the client.

Fees and payment

Fees and terms of payment will be disclosed to the client in writing in advance of any contract being signed. Details of what is included in the fees must be given.
Clients should be allowed a 14-day 'cooling-off period', during which, on the client's request to terminate services, they will be charged only for work actually done, in lieu of any fixed, larger or composite fees which might have been anticipated. Clients must be given a clear indication in advance of the charges involved should they decide to terminate the contract within this period of 14 days. The existence of the ‘cooling-off’ period should not prohibit immediate commencement of services if all parties agree.
Clients must not be asked for any payment exceeding the costs expected to accrue during the 14-day 'cooling-off period' until at least 14 days into the contract.
A schedule of payments, with clear indications of when monies are due, will be agreed in writing at commencement of the contract and a copy will be provided to the client.
Additional charges will not be made above those fees originally agreed at commencement of the contract nor will charges be made to any other party in connection with the client or assignment, except as originally disclosed or subsequently agreed with the client and confirmed in writing.

General

Consultancies will not engage in any unlawful restraint of trade or unfair method of competition.

Professional relationship

This sets out the standards that providers of career and outplacement services should adhere to in their professional relationships with clients. It includes issues like qualifications, acceptance of clients and provision of services.

Fitness to practise - qualifications and continuing professional development

Consultants must be able to demonstrate they are competent in the provision of career and outplacement consultancy services by possessing at least one of the following:
- chartered membership of the CIPD (Chartered MCIPD, Chartered FCIPD, Chartered CCIPD)
- registration with the British Psychological Society as a Chartered Psychologist
- other qualifications in psychology, vocational guidance, coaching or counselling recognised by a professional body.
Psychometric testing and feedback must only be conducted by holders of the British Psychological Society Level A Statement or Certificate of Competence in Psychological Testing. Those conducting personality testing should also hold the British Psychological Society Level B Statement or Certificate of Competence in Psychological Testing or the equivalent additional training specified by the test supplier. Administration of psychological tests can also be carried out by holders of the British Psychological Society Test Administration Certificate.
Consultants should maintain and advance their knowledge and skills throughout their career by undertaking and recording continuing professional development (CPD), in accordance with the requirements of their relevant professional bodies.
Consultants must accurately represent their competence, qualifications, membership of professional bodies and experience and provide evidence of the same, on request from the client.

Acceptance of clients

Consultants will not accept any individual for career and outplacement services without holding an initial meeting of sufficient duration to enable the consultant to achieve a clear understanding of their requirements. Such a meeting must be free of charge and without commitment by either party.
No individual will be knowingly accepted into a career and outplacement services programme if it is evident they need medical/psychological therapy beyond the competence of the consultant or the resources available.
Consultants will not accept an individual for career and outplacement services where the services they can make available are unlikely to contribute substantially to the achievement of the individual’s objectives.
Any known or potential conflict of interests must be divulged before an assignment is accepted.

Provision of services

If an individual is submitted for a vacancy which is being handled by an associated recruitment service of the career or outplacement consultancy, then the nature of the association must be disclosed to all parties.
Consultants will take all reasonable steps to ensure that adequate information is obtained regarding the individual’s background and abilities, to provide a firm foundation for any personal career advice given. This should include in-depth interviewing, and may include psychometric testing or biodata.
Consultants must be able to demonstrate effective quality control in their activities and specify quality control methods.
Individuals have the right to expect that appropriate communication will be maintained with them throughout the assignment. For example, contact should take place at least once a month, when they must be advised of all activities undertaken on their behalf.
Consultants will remain independent of the individual’s affairs and the opportunities they seek to pursue, and ensure that counsel and advice remains objective throughout the assignment. Any actual or potential conflict of interest should be disclosed as soon as it is recognised by the consultant and if necessary the consultant must be prepared to withdraw from the contract refunding any payment for services not provided.

Respect for client’s autonomy

Consultants will respect diversity of beliefs and values and will continually review their practice with due regard for changing societal norms.
Consultants must be mindful of the personal nature of the client relationship when providing services.

Confidentiality

The consultant will clarify and explain the nature and extent of confidentiality from the start. Circumstances in which confidentiality may be breached will be identified.
All information received as a result of a contract for services shall be treated in the strictest confidence and kept securely at all times. Clients should be advised of their rights of access to their records.
In accordance with data protection legislation, client records will not be disclosed to any third party without prior authorisation.

General

Consultants must be fully aware of, and comply with, the relevant legislation affecting the provision of services. Breach of the law will be deemed a breach of these guidelines.
Consultants must supply references should the client request them.
Consultants must provide documentary evidence that they possess up to date professional indemnity insurance.

Private career and outplacement services

Additional standards arise for services provided to clients as individuals paying for the services they personally receive.

Business relationship

The consultant will ensure the client understands the provisions of the contract, any exclusions and the nature of the services to be provided before the contract is signed.
The consultant should ensure the client has the means to access all the services available.
The consultant will allow the client, if they wish, to take away a copy of the contract for consideration and reference to a third party source of advice such as a legal adviser before the contract is signed.
The consultant will ensure the client is aware of the existence of this factsheet and is given a copy.
Any variations to services from that specified in the contract must be discussed fully with the client and agreed in writing.

Professional relationship

The consultant must always act in the best interests of the individual.

Glossary and definitions of terms

The terminology used to describe services delivered by career and outplacement consultancy services has evolved over the last few years as the industry has grown and advanced. Some of the terminology used can therefore be confusing. Whilst different firms and consultants will adopt different terms to emphasise their approach, for the purposes of this factsheet, the term ‘career and outplacement services’ includes the whole range of career coaching, career mentoring, life coaching, career counselling, and outplacement services.

To ensure clarity and to avoid misunderstandings, a glossary of common terms is provided below.

Term	Description of meaning
Career and outplacement services	Activities designed to enable individuals to develop a greater awareness of their capacities, potential, skills and limitations, to help them to pursue the career opportunities open to them and to manage the transition through a career change or into re-employment following the loss of a job
Career and outplacement consultants	Individuals engaged in providing career and/or outplacement services in return for fees
Career and outplacement consultancy	Organisations providing career and/or outplacement services
Clients	Organisations or individuals paying for services and with whom a written contract exists
Individuals	Those receiving services
Private services	Where services are provided to clients as individuals paying for the services they personally receive. (In such cases, the terms ‘client’ and ‘individual’ will refer to the same person.)
Sponsored services	Where the client is an organisation paying for services provided to an individual or group of individuals

CIPD viewpoint

Career outplacement is a crucial service to ease the transition of individuals through the difficult and delicate career journeys we all face. However, quality and effectiveness is variable and by following our guidance on provider selection establishing contract, ensuring appropriately qualified consultants are engaged, the risks can be minimised, and more importantly, the benefits can be delivered for both individuals and organisations.

Career and outplacement consultants

Revised August 2009

Introduction

General principles underpinning all services

Business relationship

Advertising

The contractual relationship

Fees and payment

General

Professional relationship

Fitness to practise - qualifications and continuing professional development

Acceptance of clients

Provision of services

Respect for client’s autonomy

Confidentiality

General

Sponsored career and outplacement services

Business relationship

Professional relationship

Private career and outplacement services

Business relationship

Professional relationship

Glossary and definitions of terms

CIPD viewpoint

Further reading

Books and reports

Journal articles