Issues in Civilian Outplacement Strategies

Proceedings of a Workshop

Renae F. Broderick, Editor

Commission on Behavioral and Social Sciences and Education

National Research Council

NATIONAL ACADEMY PRESS
Washington, D.C.
1996



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Issues in Civilian Outplacement Strategies: Proceedings of a Workshop Issues in Civilian Outplacement Strategies Proceedings of a Workshop Renae F. Broderick, Editor Commission on Behavioral and Social Sciences and Education National Research Council NATIONAL ACADEMY PRESS Washington, D.C. 1996

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Issues in Civilian Outplacement Strategies: Proceedings of a Workshop NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance. This report has been reviewed by a group other than the authors according to procedures approved by a Report Review Committee consisting of members of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress of 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Bruce M. Alberts is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. William A. Wulf is interim president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Kenneth I. Shine is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy's purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. Dr. Bruce M. Alberts and Dr. William A. Wulf are chairman and interim vice chairman, respectively, of the National Research Council. This work is sponsored by the Office of the Deputy Assistant Secretary of Defense (Civilian Personnel and Policy) and funded under Defense Supply Services Contract No. DASW01-95-C-0139. The views, opinions, and findings contained in this report are those of the author(s) and should not be construed as an official Department of Defense position, policy, or decision, unless so designated by other official documentation. Library of Congress Catalog Card Number 96-69970 International Standard Book Number 0-309-05544-X Additional copies of this report are available from National Academy Press, 2101 Constitution Avenue, N.W., Box 285, Washington, D.C. 20055. Call 800-624-6242 or 202-334-3313 (in Washington Metropolitan Area). Order electronically via Internet at http://www.nap.edu. Copyright 1996 by the National Academy of Sciences. All rights reserved. Printed in the United States of America

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Issues in Civilian Outplacement Strategies: Proceedings of a Workshop COMMISSION ON BEHAVIORAL AND SOCIAL SCIENCES AND EDUCATION JOHN A. SWETS (Chair), BBN Laboratories, Inc., Cambridge, Mass. ALFRED BLUMSTEIN, The Heinz School of Urban and Public Affairs, Carnegie Mellon University ANTHONY S. BRYK, Department of Education, University of Chicago RICHARD ELMORE, Graduate School of Education, Harvard University BARUCH FISCHHOFF, Department of Social and Decision Sciences, Carnegie Mellon University JAMES GREENO, Department of Education, Stanford University ROBERT M. HAUSER, Institute for Research on Poverty, University of Wisconsin, Madison JOHN F. KIHLSTROM, Department of Psychology, Yale University ELEANOR E. MACCOBY, Professor of Psychology, Stanford University CHARLES F. MANSKI, Department of Economics, University of Wisconsin, Madison BARBARA J. MCNEIL, Department of Health Care Policy, Harvard Medical School JANE MENKEN, Population Studies Center, University of Pennsylvania WILLIAM A. MORRILL, President, Mathtech, Inc. W. RICHARD SCOTT, Department of Sociology, Stanford University CHRISTOPHER A. SIMS, Department of Economics, Yale University NEIL J. SMELSER, Center for Advanced Study in the Behavioral Sciences, Stanford, Calif. RICHARD F. THOMPSON, Neuroscience Program, University of Southern California WILLIAM JULIUS WILSON, Sociology Department, University of Chicago DAVID A. WISE, National Bureau of Economic Research, Cambridge, Mass.

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Issues in Civilian Outplacement Strategies: Proceedings of a Workshop Preface Over the next 5 years, some 75 military bases in the continental United States will be closed. This is part of a larger picture of downsizing and defense conversion efforts brought about as a consequence of the collapse of the Soviet Union as a rival world power and of difficult budget realities closer to home. Reductions in the numbers of military personnel, already well under way, will bring the military to its lowest force levels since before the Korean War. Most of these reductions will be achieved in the form of lower recruiting goals and smaller numbers of accessions, although a significant number of career officers and enlisted personnel will also be affected. The civilian workforce of the U.S. Department of Defense does not, like the uniformed one, depend on a base of constantly changing young people who serve for a term or two. Downsizing it cannot be accomplished by the relatively painless process of reducing the number of hires. Although the Department of Defense is pursuing all downsizing options, including early retirements, special leaves, and internal transfers, reductions must be accomplished largely by eliminating the jobs of people who have spent their careers supporting the military services. In addition, downsizing through base closings has a direct and concentrated impact on the communities in which the bases are located. In many communities, such as Charleston, South Carolina, the military is the dominant employer. California presents the example of a state suffering not just multiple base closures, but also severe cutbacks in the defense industry, a major source of high-salaried, high-technology jobs. Military installa

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Issues in Civilian Outplacement Strategies: Proceedings of a Workshop tions in small communities throughout the South have encouraged the growth of a service infrastructure that, absent the military presence, the local economies may not be able to support. In all of these cases, the reemployment picture for civilians currently employed at the military bases is not strong; moreover, the impact of base closings will be felt more or less severely by the local economy. For many employees, help in finding new jobs or training opportunities to make them more marketable is the key to mitigating the effects of base closings. The Office of the Deputy Assistant Secretary of Defense for Civilian Personnel Policy asked the National Academy of Sciences for assistance in understanding the range of outplacement issues and options available to them based on what has been learned in other settings, especially in the private sector. In February 1996 the Commission on Behavioral and Social Sciences and Education of the National Research Council held a workshop to present existing research and best practices for employee outplacement. Participants included Department of Defense officials involved in developing outplacement policies, academics currently conducting related research, representatives from private industry directly involved in outplacement, and consultants specializing in this area. We gratefully acknowledge the support of Diane Disney, Deputy Assistant Secretary of Defense for Civilian Personnel Policy, and her staff. We wish to thank Renae F. Broderick for her work in planning the workshop and drafting this proceedings. We are especially grateful to Carolyn Sax, staff of the Commission on Behavioral and Social Sciences and Education, who took on major responsibilities for organizing the workshop and preparing the manuscript. Finally, we are indebted to the workshop presenters and participants for their contributions to the success of the workshop. John A. Swets, Chair Commission on Behavioral and Social Sciences and Education Alexandra K. Wigdor, Director Division on Education, Labor, and Human Performance

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Issues in Civilian Outplacement Strategies: Proceedings of a Workshop Contents INTRODUCTION   1     Workshop Model of Outplacement   2     Plan of the Proceedings   9 PART I: OUTPLACEMENT RESEARCH AND EXPERTISE   11     Overview   11     Unemployment and Outplacement: An Organizational Psychology Perspective Connie R. Wanberg and Leaetta M. Hough   14     Reemployment: Labor Market Barriers and Solutions Duane E. Leigh   33     Remarks on the JOBS Workshop and Project Amiram Vinokur   55 PART II: INDUSTRY EXPERIENCE WITH OUTPLACEMENT   57     Overview   57     Lessons Learned from Outplacement Practice and Experience Gerald W. Bush   61

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Issues in Civilian Outplacement Strategies: Proceedings of a Workshop     Remarks   72     Jack Ryan,   72     Susan Diamond,   74     Ellen Jackson,   77     Anne Messenger,   79     Anthony Papalia,   82 PART III: THE DEPARTMENT OF DEFENSE OUTPLACEMENT TASK   87     Organizational Outplacement   89     Community and Individual Outplacement   94 APPENDIX: Workshop Agenda and Participants List   97

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Issues in Civilian Outplacement Strategies: Proceedings of a Workshop Issues in Civilian Outplacement Strategies Proceedings of a Workshop

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