What is an Employee Placement Program?

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  • Last Modified Date: 05 October 2019
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When companies reorganize and jobs disappear, companies may turn to an employee placement program to minimize the number of layoffs. Usually other job opportunities offered through an employee placement program are jobs that are “in house” and comparable to the current job the employee holds. Sometimes, employees in a employee placement program may be asked to take a lower paid and lower responsibilities job, or accept relocation in order to remain employed. In rare cases, the downsizing company may offer an employee placement program that helps workers find jobs outside of the company.

The number of available jobs determines the degree to which a company is likely to offer an employee placement program after reorganization. Often the employee is directed to human resources where his or her skills are analyzed to see what other jobs might be a good fit for the person. Sometimes an employer uses an outside service to run its employee placement program, like an employment agency or a company specializing in human resources.

Those participating in an employee placement program in lieu of losing their chances to work for the same company usually must have a good employee record. The employee placement program may only be open to those employees who have worked for the company for a certain period of time. Employees with seniority may have access to better job choices.


One can often find an employee placement program in federal and state agencies, since there tend to be jobs available elsewhere. However, if salary or job requirements are less than the employee’s current job, he or she may wish to look elsewhere for a job that better fits requirements. Sometimes a layoff, though scary in the onset, can actually propel people to move up in their field or find work for which they are better suited.

With the current economic climate, however, job searches, and time before rehire with another company can take several months. It may be better to take advantage of an employee placement program and then actively search for a job with another company.

Some companies feel badly when large numbers of layoffs must occur, and work with employees to help find them work with other companies. Such an employee placement program might assist an employee with putting together a good resume, giving them leads on other jobs, and helping provide recommendations that make the employee an attractive candidate to companies that are hiring.

In some cases, an employee placement program of this type may mean the company takes advantage of its previous relationship with its clients or fellow companies to try to place employees. This may also mean an employee must relocate. However, the benefits of having a job right away may be worth the stress and cost of relocation.

Staffing industries, employment agencies, and headhunters often refer to their work as an employee placement program. These agencies or individuals work to place employees with certain companies for a set fee or commission. This is usually not associated with mass layoffs in a company.


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Post 3

Sunny27-That happens a lot. Sometimes an employee disability will also cause an employee to be placed in a different position.

For example, a police officer with significant on the job injuries might be placed on desk duty and given a clerical position in order to keep him on the force.

Also, an employee that is on maternity leave is usually given the same position upon return to work, but sometimes a comparable position is offered because someone had to fill the job in the employee’s absence.

Post 2

Suntan12-Many companies move business operations to developing countries in order to save significant costs.

For example, my cousin used to work for DHL, who happened to move their entire accounting operations to Costa Rica. This allowed the company to hire locals who could do the same job that an American could do for a fraction of the salary.

In Costa Rica, an accountant can earn an average salary of $1,000 a month compared to the $5,000 and up for an American accountant.

Although, my cousin was asked to head the accounting operation and would receive a significant raise for doing so, she declined the offer because moving over there posed too much of a hardship because of her elderly mother.

She then had to separate from the company because there was no other job for her because her background was in accounting.

Post 1

Employee performance evaluations often determine the employee rating and the results of the employee performance appraisals also determine future placement within the company when downsizing occurs.

Often valuable employees are given some employment options that may or may not include relocation. Less desirable employees are often separated from the company and given some form of severance packages.

Sometimes, a company will pay for outplacement services for the newly displaced employee as a sign of goodwill. The outplacement firm will coach the employee on resume building, and interview skills in order to obtain future employment. These firms also help people train for other jobs and eventually help the employee find other employment.

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