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building the business case: from risk to ROI
building the business case: from risk to ROI

from risk to ROI: proving impact

A strong business case shows why redeployment and outplacement are more than employee benefits — they are strategic investments. Cost is part of the equation, but the persuasive story is how redeployment avoids unnecessary exits, while outplacement reduces risk when layoffs must occur. Together, they deliver measurable ROI and protect long-term brand value. Frame both the risks of inaction and the returns of doing it well so leaders can make confident, future-focused decisions. 

Cost tells you what you will invest; ROI tells you what that spend returns through mitigated reputational damage, minimized customer backlash, reduced voluntary attrition, fewer disputes and steady productivity. For the business, redeployment also cuts recruiting and onboarding costs by retaining institutional knowledge and shortening ramp time. For employees, both redeployment and outplacement provide tangible benefits — including faster re-employment, pay parity, participant satisfaction and career confidence.

Outplacement costs vary depending on the company's needs and the professional level of the impacted employees. Programs are scalable, with pricing based on the number of impacted employees, the scope of services and the level of support required. Outplacement is a flexible investment that can be tailored to your goals, and many employers find the cost is offset by avoided risks and long-term value.

cost drivers

  • Number of impacted employees: Costs scale with volume, whether you support a small team or a global workforce.
  • Scope of services: The length and depth of support impact the price, ranging from resume critiques to comprehensive resume writing and from basic coaching to extended engagements.
  • Incremental services: Optional offerings, such as workshops, career development programs or support for retained employees, can increase costs.

additional factors

  • Term limitations: Service duration (e.g., one month vs. three months) influences both cost and outcomes.
  • Range of services: One-to-one consultations, tailored programs, and other personalized services help people land faster and shape their price.
  • Experience of coaches: Coach certifications, tenure, success rates and ongoing training are part of the value equation. 
  • Add-on services: Manager notification training, 1:1 preparation coaching, resilience training and workshops during notification periods.
  • Volume discounts: Discounts may be available based on projected volume.

how to evaluate costs and ROI

When evaluating redeployment and outplacement, it’s critical to consider ROI. Although it may seem counterintuitive, there is a high cost to not funding outplacement services: Layoffs can result in higher turnover, lower productivity, lost revenue and costly litigation. It’s easy to see how the benefits of outplacement can positively impact your bottom line.

By safeguarding your employer brand, redeployment and outplacement can also reduce future recruiting expenses. According to Gallup, replacing employees can cost approximately 200% of salary for leaders and managers, 80% for technical roles and 40% for frontline employees — much of it is preventable. Outplacement helps mitigate these costs by maintaining morale, reducing turnover and accelerating re-employment. By helping employees land new positions more quickly, outplacement can also help reduce potential unemployment costs: 

As you prepare for outplacement services, procurement managers and others involved can find a detailed, step-by-step guide for developing an RFP in chapter 6.

what impacts ROI

Outplacement ROI is driven by both tangible savings and strategic value. When building your business case, consider how these elements work together to reduce costs and protect brand equity:

  • Program cost = projected outplacement spend
  • Avoided turnover cost = unplanned exits avoided × 33–200% of salary
  • Unemployment savings = faster time to land → lower unemployment exposure
  • Quality of re-employment = pay parity or better for 83%+ → stronger alumni advocacy
  • Litigation risk avoided = fewer disputes due to a consistent and fair process
  • Recruiter spend avoided = steadier brand and pipeline → less emergency hiring
  • ROI narrative = sum of avoided costs and value signals minus program cost

the business case for redeployment and outplacement

In an era where workforce transitions are highly visible, leaders and stakeholders need evidence that redeployment and outplacement reduce risk, protect reputation and deliver measurable ROI. 

Framed well, redeployment is a cost-avoidance lever, while outplacement is a risk-management tool. Together they act as brand-equity drivers with KPIs finance can track, from time to land and pay parity to redeployment cost savings, program adoption and satisfaction rates. Anchor the case in quantified risks, clear KPIs and expected payback so finance views redeployment and outplacement as safeguards, not discretionary perks. 

These outcomes translate into business value through increased retention, reduced recruitment and onboarding costs, faster time-to-fill, and greater workforce agility.

These outcomes translate into business value through reduced unemployment tax exposure, lower litigation risk, less recruiter spend and preserved productivity.

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governance and reporting

A credible business case shows how results will be governed and measured. Governance defines roles, accountability and escalation paths, while reporting provides transparent visibility into outcomes. Top providers enhance reporting with real-time, on-demand insights delivered through a reporting platform — rather than backward-looking spreadsheets that lack timely updates. 

  • Dashboards and KPIs: Track time to land, pay parity, program adoption and satisfaction by segment and geography.
  • Fairness and consistency: Consistent reporting proves ROI and reinforces integrity across every transition.
  • Roles and escalation: Define ownership, cadence and escalation paths so issues are resolved quickly and visibly.
  • Invoicing accuracy: Implement oversight across your invoicing processes to ensure billing is accurate and reflective of the services being delivered.

long-term brand value

Poorly executed transitions expose you to financial, compliance and cultural risks. Well-executed transitions build equity.

  • Financial risk reduction: Mishandled exits can trigger lawsuits, negative publicity and voluntary turnover, with replacement costs that can reach a significant portion of the salary for each role.
  • Compliance and cultural risk reduction: Values-driven, consistent treatment reduces regulatory exposure and strengthens trust with employees and stakeholders.
  • Long-term brand value: Employees who are supported are more likely to recommend your organization, advocate for your brand or return later as boomerang hires. The reputational dividend often outweighs the direct financial ROI.
  • Protecting morale and retention: Employees who remain are more engaged when they see colleagues treated fairly. That strengthens culture, sustains productivity and reduces the risk of losing top performers at a critical time. Consistent, supported transitions protect loyalty during and after restructuring.

5 questions: is your business case strong enough?

  1. Have you quantified the hidden costs of mishandled exits, including litigation, turnover and reputational risk?
  2. What ROI measures demonstrate the value of redeployment (e.g., reduced recruiting costs, shorter onboarding, preserved productivity) and outplacement (e.g., faster re-employment, pay parity, alumni advocacy)?
  3. Does your case highlight long-term brand value, including alumni goodwill and employer reputation?
  4. Have you addressed risk reduction, compliance and governance with clear KPIs that finance can track?
  5. Does your business case show how redeployment and outplacement protect morale, productivity and retention among remaining employees?

3 key considerations: demonstrate ROI

  1. Use financial data (turnover costs, litigation risks) and brand data (engagement, alumni advocacy) to strengthen the case.
  2. Position redeployment as a strategy for workforce agility and cost avoidance, and outplacement as a safeguard for brand reputation and resilience.
  3. Prioritize providers that combine measurable results with cultural alignment to ensure both impact and integrity.
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