Madge Gibson, founder of The Change Initiative and former executive recruiter, answers questions, offering an insider view of outplacement in South Africa
Outplacement is a well-established off-boarding practice in global markets. Here in South Africa, these services are relatively recent, but a growing feature of employee termination packages.
The Change Initiative (TCI), is a Cape Town-based outplacement services company founded in 2014 by former executive recruiter Madge Gibson. As one of the first of its kind in South Africa, the company has been at the forefront of promoting and establishing outplacement as practical and responsible support for released and retrenched staff.
Madge offers an insider view of outplacement in South Africa.
What was your inspiration for starting The Change Initiative?
There were several factors, but primarily, after a decade of interviewing highly skilled and experienced candidates for many roles in many industries, I recognised how few understood how to market themselves. Or even why they had to. I knew I could help people showcase their strengths and successfully navigate the recruitment process.
Once I started researching, I realised that what I wanted to create was actually a well-established service overseas, that didn’t exist yet in South Africa.
What was your biggest challenge in getting the business off the ground?
Getting meetings with HR executives to introduce a service that no one had heard of before.
How does the outplacement process work?
Basically, we address the emotional and practical elements of the job change process.
Firstly, we listen. Employees who have been laid-off, or terminated for whatever reason, are often overcome by intense and confusing emotions. We help people put those feelings into perspective and focus them on regaining control of their careers.
After we review and assess a candidate’s existing marketing materials, we discuss their professional goals, strengths, weaknesses and potential options. These initial conversations are valuable, because they offer the kind of objective feedback that allows people to make clear, focused decisions.
What does outplacement cost?
We offer three different programmes at different prices, but broadly speaking you’re looking at between 2% to 10% of annual salary for one-on-one programmes and significantly less for group programmes.
What are some of the reasons companies use outplacement?
Many companies have genuine concern for employee welfare and want to help speed the transition to a new job.
For HR, terminating staff is time consuming and emotionally draining. External support limits the pressure on HR staff so they can return to business as usual more quickly.
Another reason is reputational risk management. A public fallout with a disgruntled employee or CCMA action is not the kind of publicity any company wants.
What are some of the most frequent client questions and concerns?
“Do you find jobs for candidates?”. The answer is “No, that would be unrealistic”. But what we can promise is that after support and training their staff will re-enter the job market with a significant competitive advantage over other job seekers. And that’s worth its weight in gold.
Cost and confidentiality also come up, since we’re often exposed to sensitive information about the company and/or the candidate.
Do you have a favorite success story?
Oh more than one, It’s gratifying to watch people blossom. We get regular feedback from candidates saying they have never experienced this kind of practical career guidance before and find enormous value in it.
What are your thoughts on the future of outplacement in SA?
The demand for Outplacement in South Africa is only going to grow. No doubt about that.
But we need to ensure that our programmes meet the needs and complexities of our local market. A one-size-fits-all, or heavy-handed technology approach to outplacement, will leave many candidates feeling “unseen”, which is completely counterproductive.
First published in Business Day, 30th march 2023
