An innovative step for the re-placement of redundant employees was introduced and implemented by the German operation of Nortel Networks, the Canadian telecommunications corporation.
Due to a significant slump in this industry sector, the company was faced late last year with the decision to part from about 120 employees mainly from the technical department but also some administrative staff. In the course of this difficult process, Nortel Networks got in contact with Mühlenhoff + Partner in Frankfurt, Germany, to discuss ways and means of providing best possible assistance to their employees. The result of these intense discussions, also including the works council, was that 93 % of those having been made redundant agreed to shift their payroll status from Nortel to Mühlenhoff in order to benefit from three factors alike: Firstly, they are able to benefit from qualifying measures which the expert outplacement company Mühlenhoff + Partner provides to them in regular weekly intervals, secondly they are not unemployed, and thirdly they continue receiving 80 % of their previous salaries for a duration of 12 months. This income is based on roughly 60% unemployment money from the government labour office, depending on family status, and the rest is topped by Nortel Networks. This way the employees can dedicate their full energy to both an effective job search and further learning without going through the immense pressure of being unemployed. There is, of course, also the opportunity of using this period for a thorough preparation of future self-employment, if one wishes.
Mühlenhoff's services to the Nortel employees include primarily a very comprehensive and in-depth outplacement support both in the form of workshops but also in 1:1 counselling sessions where individual questions can be dealt with. In addition, it not only includes regular research activities with regard to arising vacancies in the job market, but also the on-going check of possible funds being granted by the labour office which can be allocated to enhance the employees' skills. Of course, there is also access to well-equipped offices and database facilities as well as a place where old colleagues meet up and discuss things happening.
The agreement with Nortel also foresees that Mühlenhoff + Partner is responsible for the salary and payroll administration of their former staff members. The initial budget needs to be reviewed every month and aligned accordingly. Another aspect is the punctual monthly reporting giving Nortel Networks a clear picture of the progress of their former employees which have been granted a really good start into a new chapter of their professional development.
