Penna Consulting is stepping up its recruitment activity by seeking jobs for candidates from its outplacement business.

It has started a new venture, Penna Connect, following intensive research. This highlighted some limitations on the traditional outplacement business, where Penna gives guidance to employees being made redundant. Typically, this had involved some basic help such as advice on writing CVs and preparing for interviews.

Every year, Career Transition (CT), Penna's biggest division, deals with about 20,000 people who have been made redundant.

Beverly White, chief operating officer at CT, said the company was now encountering people who had been made redundant three or four times. She said: "People told us we offered routes to market, but we weren't finding them jobs, which is what most of them want."

The company believes it has a unique proposition for companies looking for staff because of its access to such candidates. "They're available to start immediately, because of the nature of their situation," she said.

White said a satisfactory service for those leaving the company helped to "protect the employer brand".

Penna Connect is separate from Penna's executive search business, and not all positions are at executive level.

As well as research, technological advances have encouraged the venture. It uses jobspider, a tool supplied by an IT partner in an exclusive arrangement, which can find 800,000 jobs at any one time, by looking at sources such as company websites.

In theory, the group could stand stand to earn two fees for each candidate — one through providing outplacement services via Career Transition and one through placing the candidate in a new job. However, White said that CT might refund part of the client's outplacement fee if the candidate is placed.

In July 2006, Penna Consulting made a profit warning due to CT having "experienced subdued demand for its outplacement services particularly in the City, which historically accounts for a third of the division's revenue". It said "buoyant conditions" in financial services had led to an "absence of major rationalisation projects".

For the six months to September 2006, turnover in CT was £7.84m, down 18% on a year earlier. White said the market was still tough, but that Penna Connect would help boost the group's fortunes.

• What do you think? Tell us at at www.recruiter.co.uk