Let’s be honest. Offboarding an employee is rarely easy. Whether someone leaves due to a reduction in force, performance issues, or other circumstances, offering them access to an outplacement service can make a meaningful difference for both your organization and the person exiting.
In this article, I break down what outplacement services are, what they typically include, their key benefits for your employees, and how to choose the best provider for your company’s needs.
Before we dive in, I want to be transparent and share that I offer outplacement services specialized for the tech industry and executives. In fact, one of the programs I designed and facilitated even received an honorable mention for the Career Innovator Award, a prestigious honor from the Career Directors International.
That said, this isn’t a sales pitch. My goal is to provide you with a comprehensive, no-fluff overview so you can make an informed decision about whether offering outplacement support makes sense for your company. I also share actionable steps you can take to find the right provider for your needs.
What Are Outplacement Services?
At their core, outplacement services help people who’ve been laid off (or otherwise let go) navigate their job search and land their next opportunity faster.
These services are typically delivered by a third-party provider and can include:
- One-on-one career coaching
- Group workshops or webinars
- Resume review and support
- LinkedIn profile optimization
- Job search strategy and networking tips
- Interview coaching and salary negotiation guidance
- Emotional support and career counseling
Each outplacement firm has its own approach. A solid one will deploy a bespoke strategy that is customized to the individual’s role, goals, and seniority.
Personally, since I specialize in the tech job market, a lot of my focus is on helping job seekers stand out in hyper-competitive spaces while also deploying a trauma-informed approach that honors their feelings and emotions.
Top Benefits Of Outplacement For Employees
When done effectively and in a way that is tailored to each individual, outplacement services aren’t just helpful—they’re empowering! They give your departing employees structure, guidance, and momentum at a time when things can feel uncertain and overwhelming.
Here are just a few of the many ways employees benefit from outplacement services:
- Demystifying the modern job search, including learning how the ATS really works.
- Crafting a standout resume that attracts the attention of recruiters and hiring managers.
- Building an optimized LinkedIn profile that attracts inquiries from prospective employers.
- Gaining confidence in interview skills and salary negotiations.
- Landing a new job faster, with less stress.
According to Joseph Arguillo, Senior Manager of Global People Operations and Compliance at Wrike, although outplacement isn’t always utilized by employees, “those who engage with the service consistently share how valuable it is, especially the resume writing, career coaching, and branding support.”
“One employee shared that every meeting built their confidence, and others noted the empathy and insight of their coaches,” he adds. “It’s a meaningful way to show care beyond employment.”
How Do Employers Benefit From Outplacement Services?
Offering outplacement services isn’t just the nice thing to do, it’s a smart business decision.
Here’s how your company benefits from outplacement services:
- It strengthens your employer brand. People will remember how you treated them and talk about it online (Glassdoor, Team Blind, Fishbowl, LinkedIn, you name it).
- It reduces unemployment costs. Quality outplacement can shorten the time employees spend on unemployment, lowering your financial liability.
- It lowers legal risk. When people feel supported, they’re less likely to pursue legal action.
- It reflects your values. It shows you care about people, even when making tough business decisions.
“Offering paid outplacement services demonstrates care beyond the layoff,” says Genesis Corniel, People and Culture Manager at The Lactation Network.
“So many companies are quick to lay off without considering that many things can be offered: reimbursement of LinkedIn premium for a bit, paid outplacement services, and paid life coaching,” she adds.
Are Outplacement Services Worth It?
Only you and your leadership team can decide whether outplacement services are worth the investment.
That said, I’ve been doing career coaching for years, and I’ve never heard an HR leader or executive say, “I wish we spent less on outplacement.”
Outplacement services are a relatively small investment that can go a long way financially, reputationally, and culturally.
“We chose to offer outplacement services as a reflection of our commitment to treating employees with dignity, care, and respect throughout the employee lifecycle,” explains Melody Todd, Director of People and Culture at Campbell & Company.
“From the employee perspective, I’ve received feedback that those impacted felt more supported knowing the company was providing resources to help them navigate their job search and manage the transition more smoothly,” she adds.
How Much Do Outplacement Services Cost?
Costs can vary significantly! Several factors will affect the price of outplacement services, including the provider’s experience and area of expertise, the scope of services offered (one-on-one, group-based, or hybrid), and the amount of support provided to employees.
Don’t expect to pay the same for a webinar or workshop from a massive outplacement company as you would for one-on-one coaching from a boutique firm.
And if you’re considering investing in a low-cost outplacement option, please think carefully about how that experience might reflect on your brand, especially for someone recently laid off and feeling hurt.
Also, if multiple employees from the same team are going to go through the same program at the same time, a good facilitator will know how to keep things focused, constructive, and psychologically safe, without it turning into a vent session.
Common Mistakes When Choosing An Outplacement Provider
Not all outplacement services are created equal, and not all of them deliver a great experience.
I’ve had many clients come to me after working with a provider that left them feeling like just another number in a queue.
Here are a few common missteps I see companies make when choosing an outplacement provider:
- Not vetting the provider. A large social following or slick website isn’t enough. You must dig deeper.
- Choosing based on a big name, but not realizing the actual work is outsourced to inexperienced subcontractors.
- Focusing only on price. Cheaper up front can cost more in the long run.
- Assuming all employees want or need the same support. Tailor the services you offer to different roles and levels; customization is key.
- Not checking in with employees. Instead of assuming what kind of support they want, ask them directly.
Choose a provider that aligns with your values, your brand, and the level of care you want to extend to your people.
Considerations When Providing Outplacement For Managers And Executives
If you’re offboarding managers, directors, or executives, your outplacement approach must shift.
For starters, each of these groups has different needs. Managers and leaders face unique challenges and opportunities in their job searches, which means their outplacement packages must be tailored.
Moreover, executive job searches are often more strategic, less visible, and heavily reliant on the “hidden job market.” One-on-one coaching is essential at this level.
“Focus on a partner who knows your industry, levels, and roles fairly well,” says Sabrina Ling, Founder and Principal at We, the People People. “It can be frustrating for employees if they feel their coach doesn’t really understand what they do and how best to support their next career move.”
In other words, these leaders need nuanced support, and they expect more than a handshake. Make sure your provider is experienced in working with senior managers or executives, or your people will notice and feel let down.
Final Thoughts On Outplacement Services
Outplacement isn’t just a perk, it’s also a way to do right by your people while protecting your brand, reducing risk, and showing that you walk the talk on company values.
If you’re exploring outplacement options, please don’t hesitate to reach out—I’d love to talk about how we can partner to support your team and make the transition as smooth (and empowering) as possible for both your company and your people. I’m here for you! You’ve got this!
