While working as an admissions counselor, Mike Chapman met with hundreds of people who were laid off and looking to upgrade their skill sets in hopes of landing new jobs. It was then that he decided career transition services were seriously outdated and, after some research, realized the outplacement industry was ripe for innovation.
In April, he launched Resition, a web-based outplacement solution designed to reduce companies’ layoff costs. In the last five months, the startup has secured $20,000 in funding from 10x, conducted market research, and built a beta version of its platform from the ground up.
Resition is expected to start bringing in revenue within the next month.
In our “social age,” consumers speak to hundreds of thousands of people about business practices they do and do not support− all with just a few taps on their computers, tablets, and smartphones, says Chapman. Therefore, monitoring and managing a company’s reputation during a downsizing event is no longer an extraneous effort.
“Resition is precipitating a paradigm shift in the outplacement industry,” he says. “It’s going to make downsizing events more transparent and collaborative affairs.”
How it works
When laid off employees land new jobs quicker, companies’ unemployment insurance taxes are reduced, he continues. Also, morale and engagement among remaining employees is improved, which reduces companies’ voluntary turnover costs.
When companies provide their laid off employees with a Resition packet, the laid off employee gets a unique access code that they use to create a Resition account.
After creating an account, they are connected with their own career coaches, and can invite friends to create a Resition account so they can follow the laid off employee’s job search progress and introduce them to valuable networking contacts.
Together, the laid off employee and their career coach complete a milestone-based job search program using the Resition platform.
Every time a milestone is completed, the laid off employee’s social networks are automatically alerted to underline that they are one step closer to landing a new job thanks to their former employer, spreading viral positive public relations about the downsizing company.
Opportunity is knocking
Even in times of economic prosperity, 2 million people are laid off each year in the United States, according to Resition. The outplacement companies serving those people, and the companies that lay them off, constitute a $3 billion per year industry.
The Resition team is made up of Chapman; Chris Domino, chief technology officer; and Walter Akana, chief operating officer. By participating in the 10-xelerator program, the team has also gained advisors Parker MacDonell of Invergarry Partners and Joel Gerber of Blue Diesel.
“As tech startup rookies, 10x has been invaluable to our development as entrepreneurs,” Chapman says.
To learn more about what Resition and the other 10x teams are up to, attend Showcase Day on Sept. 7 from 1 p.m to 4.p. at the Canzani Center on the Columbus College of Art and Design campus.
To learn more about Resition, visit Resition.com.