Project Progress

I have overseen transfer companies for clients in various industries. I have observed that transfer companies are designed differently depending on the financial capabilities of each industry. In each outplacement project, the transfer company, in collaboration with the client, establishes a project group. Through this project group, the client receives information on placement figures. This means they can specifically inquire about how certain employees are developing in the transfer company. The project group also coordinates the budget for further education or manages an employer's hardship fund. In various sessions, I supported the project group in my role as a coach for transfer companies.

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What is a Transfer Company?

A transfer company, formerly known as a 'Auffanggesellschaft,' is an instrument for the socially responsible reduction of jobs. The employee enters into a termination agreement with the employer and simultaneously signs a fixed-term employment contract with the transfer company provider. In the event of impending staff reduction, employees can quickly transition to the transfer company. By establishing the transfer company, the employer has the opportunity to implement an impending staff reduction as outplacement quickly, legally, and socially responsibly.

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Advantages for the Employer

Through the transition to the transfer company, the employer is not required to adhere to the notice period in the employment contract. Simultaneously, the employee agrees to their termination and waives the right to file a dismissal lawsuit.

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Advantages for the Employee

For the employee, transitioning to the transfer company has the advantage of receiving support from a coach during the application phase. Additionally, there is a budget for further education in the transfer company. This ensures that the employee is well-qualified for the job market in the future. Due to professional guidance, employees in transfer companies quickly find new employment. If this is not successful in individual cases, the employee receives unemployment benefits, which are based on their last salary before entering the transfer company. They do not have to fear a block by the employment agency since they have signed a termination agreement with the transfer company.

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Who Finances a Transfer Company?

The transfer company is financed by the state and the employer. The employee receives state Transfer Short-Time Work Allowance during this time. All other costs are borne by the employer. Transfer companies are a good instrument when employees have worked in a company for a long time. Employees have long notice periods, making staff reduction slow and expensive. Employers often finance the transfer company from the notice period, making the establishment of a transfer company almost cost-neutral. The rule of thumb is that with a two-month notice period, about one month of stay in the transfer company can be financed.

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Coaching in Professional Reorientation

Outplacement in transfer counseling means that when employees receive their termination, they are transitioned to the transfer company. As a Consultant for the Transfer Company, I supported them here. Many mourn their old workplace, so coaching requires a lot of empathy. Only this way can employees gather the necessary energy to take the next step. Some reapply in the same profession, while others start their own business with a business plan. Often, there are also older employees close to retirement. A Transfer Company Consultant works together with them to determine how the last phase of their career can be well-utilized. As a coach, my task is to introduce people to new ideas that are feasible. After that, the employee develops concrete plans and takes the next steps. I support them in this—often especially in creating an application.

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Use of Psychological Assessments

The transfer company conducted a psychological assessment with the clients. This test assessed abilities such as activity and willingness to compromise, as well as personality traits. As a consultant, we later used the results in coaching.

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Planning and Implementation of Further Education

For each outplacement, there is a budget for further education. This can usually be flexibly distributed among the employees because some may not wish for further education while others desire an expensive training. Important for the coach in the transfer company: they should meet all interests, advise employees on possible further education, and focus on qualifications that are helpful in the job search.

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Success Record

As a Consultant for the Transfer Company, coaching employees during the application phase was crucial. Here, I had to motivate clients to stay engaged, write applications, and regain courage after rejections. In creating their application documents, I only provided tips and templates because the client should actively reshape their future. I prepared many clients for job interviews, including executives for assessment centers. Then, clients had various job offers and could even choose. Furthermore, if needed, I supported clients in integrating into their new workplace—offering integration coaching.

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Further information:

» My Services: HR Restructuring & Change Management

» My Services: HR Management

» My Services: Labor Relations

» Project Example: Manager Labor Law

» Project Example: HR Manager Staff Reduction in the automotive sector

» Project Example: HR Manager in the aviation sector