What Is Outplacement and What Are Its Benefits?


Terminations and layoffs are stressful situations for both employees and employers, but outplacement, a career assistance service that assists former employees in finding new jobs, can help ease the transition. Businesses that provide it may also discover that it enhances their reputation and lowers the cost of unemployment claims. We will learn more about the Downsizing Service, Outplacement Services for Individuals, and executive costs.

What Is an Outplacement Service?

Outplacement refers to any service that helps a departing employee find a new job or transition to a new career. Some employers provide access to outplacement services as an employee benefit to their employees. Outplacement services can be financially, professionally, and emotionally beneficial to all parties and, more often than not, ensure a peaceful end to a working relationship.

Understanding Outplacement Service

No one wants to be fired or laid off from a job, let alone deliver the news to someone else, but going above and beyond a severance package by offering outplacement services can help both parties navigate an often-difficult transition.

When a company is letting an employee go, it may offer services in-house; others may hire a third party to keep costs down or if tensions or awkwardness are particularly high. Traditionally, outplacement services were provided at an outplacement firm so that the former employee could have access to office tools (such as a phone and computer) needed to write resumes and cover letters and find new employment. Many employees now work from home and may only need to visit an outplacement firm for career counseling if at all, as counseling can be done over the phone.

The services remain the same in either case: resume and cover letter writing, coaching, market analysis, fine-tuning interviewing skills, salary negotiation, and other services designed to give an ex-employee the best chance of finding another job as soon as possible.

Downsizing and Outplacement

The goal of an organization is to hire the best Human Resource talent available in the market. An organization may have to part ways with its employees for unavoidable reasons. Organizations use techniques such as employee separations, downsizing, and outplacement to achieve the aforementioned goal. It is important to note that the organization incurs significant costs during both the hiring and employee separation processes.

Employee Separations, Downsizing, and Outplacement

Employee separation is the process by which an organization or an individual terminates employment with that organization. This procedure could be voluntary or involuntary. Whereas voluntary separation occurs when an employee decides to end the relationship with the employer for personal or professional reasons, involuntary separation occurs when an employer terminates the relationship with an employee due to economic necessity or a poor fit between the employee and the organization.

Downsizing or laying off employees can be a disastrous solution for any organization if not done sparingly and carefully. However, if done correctly, it can serve as a support for the organization and result in the previously mentioned benefits. It could be argued that how downsized or laid-off employees are treated has a direct impact on employee morale and retention of valuable and high-performing employees. As a result, downsizing or laying off employees should be avoided without a well-thought-out strategy because it can have a negative impact on an organization’s overall performance.

Outplacement refers to efforts made by a downsizing company to assist former employees in transitioning to new jobs and re-orienting to the job market. Outplacement services are typically provided by a consulting firm and are paid for by the former employer and consist of practical advice and psychological support.

Executive Outplacement Services

Executive outplacement is a service provided to outbound executives to help them find new services outside their current company. Outplacement, as you are probably aware, is typically provided following a layoff or RIF event that displaces workers. However, there are numerous other reasons executives may choose to use the service.

The Unique Challenges of Executive Outplacement

Because of the individual’s high-level role, executive outplacement services must be more robust and well-rounded than standard outplacement processes. A senior executive will have fewer opportunities (job prospects) than a regular employee or someone in middle management.

An increase in demand for executive outplacement services began during the recession, but now that the economy has recovered, M&As and other business transactions are driving up demand once more.

As you can see, executive outplacement requires more skill and time than other outplacement services to ensure that coaches can work closely with the executive to help ensure they land the right role.

Why You Should Provide Executive Outplacement Services

The real question you’re probably asking is whether you even need to offer executive outplacement or outplacement services in general.


Simply put, it is a way for your current employees to return to work following a separation event at your company. This outplacement could be a merger, acquisition, layoff, RIF, restructure, downsizing, or other similar events.

Each of these events can be taxing on your entire organization. By offering these services, you can ensure that your departing employees are in good hands and will leave your organization as smoothly as possible.

Outplacement Services for Individuals

Individual outplacement services offer a severance benefit to employees and individuals, allowing employers to better manage termination costs and employees to successfully transition to a new role and company. Organizations use outplacement services for individuals to assist departing employees with their job transition.

Outplacement firms offer services to relocating employees in the form of personalized programs, assessments, and workshops focusing on resume and cover letter writing, job leads, counseling, and other individuals.

Individuals can often access these services over the phone or through outplacement technology. Individual outplacement services can improve retention and productivity, reduce lawsuits, improve business branding, and support corporate values, to name a few individuals.

Outplacement services are frequently included in a company’s severance package. Some providers of outplacement services for individuals also provide technology solutions such as mobile or cloud-based access, social networking, and job board software, to name a few.


Let’s get right into individual outplacement services. The following are the top outplacement firms in the United States:

#1. Careerminds

You are currently on our website! We have many resources available that will demonstrate why we are at the top of this list.

#2. Right Management

According to their website, “our solutions are smart and targeted because they are based on insights gathered from your organization and its leadership.”

“This ensures that we implement strategies and solutions that are consistent with your organization’s culture, values, vision, and objectives. Insight-based implementation yields measurable results and positions you for long-term success.”

#3. Global Outplacement Alliance (GOA)

According to the company’s website, GOA is a cohesive network of national and international career service specialists providing seamless, best-in-industry career management, outplacement, and talent management services.

“GOA partners adhere to a higher standard of outplacement services, which include a customized approach, high integrity, and hands-on outplacement and career transition services tailored to the specific needs of clients and employers.”

#4. VelvetJobs

“VelvetJobs is a pioneer in career transition and outplacement. Top employers across a wide range of industries rely on VelvetJobs to help them transition talent, recruit talent, and manage their employer brand “SHRM was informed by the company.

“Millions of professionals have used VelvetJobs, which provides career tools and services, curated job listings from leading companies, resume assistance, and career advice.”

#5. Mercer

“Today, employers want a solution that provides a virtual career center, social network integration, and pushes jobs to jobseekers through alerts, backed up by one-on-one coaching,” the company says.

“Mercer’s approach enables transitioning employees to find work nearly three times faster than the national average. We are redefining outplacement design, delivery, and outcomes to meet the needs of employees at all levels.”

#6. Challenger Grey

“We collaborate with our clients to provide tailored outplacement services. Our programs are adaptable; we can deliver them remotely, in person, individually, or in groups “the business writes

“The Challenger approach to career transition is to treat each affected employee with dignity and compassion while providing processes that positively impact the job search.”

#7. RiseSmart

According to the company’s website, “RiseSmart offers outplacement services that are better, smarter, and faster than the rest – delivering greater value for better savings than those of outdated, traditional offerings.”

“With the outplacement resources we provide through our programs, we’ve helped thousands of people find new jobs quickly. We have also assisted world-class companies in lowering costs and protecting their valuable brands.”

#8. Career Partners International (CPIWorld)

“When your workforce is affected by consolidations, downsizing, mergers, and acquisitions, choose the best value in an outplacement partner. Career Partners International ensures that your brand reputation, departing employees, workforce productivity, engagement, and morale all improve “According to the company’s website.

Outplacement Services Cost

Outplacement services range in cost from over $10,000 for senior executives to $1,472 for hourly employees. The range reflects the number of services. According to an Inc. article, one company’s employer-paid coaching and support lasts a year and costs between $1,000 and $25,000.

The cost of outplacement services varies greatly depending on your requirements. Variables frequently include the seniority of eligible candidates, the length of the program, the types and number of elements offered, the amount of high-touch services chosen, and others. Bravanti creates custom packages based on our clients’ needs, tailoring the exact offering to deliver excellent results.

Benefits of Outplacement Services

#1. Demonstrates social awareness.

Many people believe that businesses must do everything possible to keep people working during the 2020 pandemic. Outplacement indicates a social consciousness while implementing cost-cutting measures. Outplacement services are frequently mentioned in public announcements of layoffs. This is due to the fact that taking care of separating employees makes a significant statement.

An experienced partner assists you in sorting through the criteria you will use to determine who will be let go. Similarly, the partner will assess the impact on the diversity of your workforce. It is also critical to review relevant laws to ensure compliance.

#3. Protects your brand reputation.

Ninety percent (90%) of professionals say they will not work for a company with a bad reputation.

 Maintaining a positive brand, in other words, allows you to attract the best talent when you enter times of growth. Making strategic decisions along the way will help you maintain an employer of choice culture.

#4. Creates a clear message for internal and external communication.

Determine the rationale for the layoffs and the business reasons for staff reductions. In other words, it’s critical to put these two things into words so you can share them accurately and clearly. Communicate this to departing employees, current employees, stakeholders, and the general public, for example.

#5. Compassionately assist your separated employees in quickly regaining their footing.

When they lose their job and are offered outplacement services, many professionals are taken aback. Provide job search assistance to existing employees through an outplacement partner; because it enables them to find a new position quickly. When a former employee cuts their job search in half compared to the national average; your company saves money on unemployment insurance.

#6. Increase remaining employee productivity and retention.

In 2018, employers paid $600 billion in turnover costs. They can anticipate an increase to $680 billion by 2020. 2 As a result, even a 1% reduction in your voluntary turnover rate can result in significant savings. Proactively address your remaining staff’s questions and needs to maintain morale and rebuild trust in your company’s future.

#7. Reduces survivor anxiety and accelerates forward movement.

On top of mounting workloads, remaining employees frequently battle survivor syndrome. This eventually leads to a lot of frustration. A plan that addresses workload changes, manager changes and team rebuilding are required to get everyone working toward a common goal. As a result, maintaining transparency throughout the process will ensure that they believe in the future state.

What Does Outplacement Mean in Terms of Talent Strategy?

Making ensuring your employees are as ready as possible for their upcoming job hunt is part of outplacement support. It includes helping them network with pertinent people, prepare for interviews, write or improve their resumes, and explore job boards to find their next position as quickly as feasible.

Outplacement Serves What Purpose?

A career program called outplacement assistance assists terminated and laid-off employees with drafting resumes, interview prep, networking, browsing job boards, and other job-hunting strategies.

What Does Recruiting Outplacement Mean?

Outplacement, sometimes known as “career transition,” helps departing employees by providing the assistance they need to reacquaint themselves with the job market. The process of finding a new job is facilitated by outplacement for the fired employee.

What Value Do Employees Place on Outplacement Services?

The benefits of outplacement learning include raising stakeholder morale both within and externally. Outplacement strategies that are well-planned and carried out can reduce the likelihood of lawsuits and associated financial concerns.

What Is the Outplacement Industry?

Employers offer outplacement services to departing workers affected by corporate restructuring, layoffs, and redundancies to aid in their transition to new career prospects. Helping them get back on their feet and reorienting them for the job market, it helps displaced workers.

Outplacement FAQs

How do employers benefit from providing outplacement services?

Employers benefit from outplacement solutions because they save money on organizational and legal costs that may arise during a job termination. This service allows departing employees to survive financially during the transition and to do so quickly and successfully.

What is an outplacement interview?

Typically, the interviewer will ask the departing employee a series of questions about why they are leaving, what they liked and disliked about their job, and what they think could be improved about the organization.

What is an outplacement consultant?

An outplacement consultant is a professional who assists recently laid-off employees in finding new employment.

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