what is outplacement?

Restructuring is one of the most visible tests of leadership. In a world where change is constant, how an organization manages workforce transitions speaks volumes about its values, culture and ability to adapt. Layoffs and redeployments are no longer just operational events — they are moments that shape a company's reputation with employees, customers and the market.

No organization wants to let go of its valued employees. But when redeployment isn’t possible and layoffs must occur, leading employers understand the importance of supporting successful transitions. By embracing people-first values, they provide outplacement services to help minimize the upheaval of separation for both departing employees and those who remain.

Outplacement is an employer-sponsored program that combines certified coaching and technology to accelerate and optimize re-employment for impacted employees. Provided at no cost to talent after a layoff or restructuring, it eases career transitions and helps people find new opportunities more quickly with stronger outcomes. Outplacement services include a variety of resources to ease career transitions, including:

Top providers design programs around employer needs so every solution aligns to goals and delivers at speed and scale. Outplacement can be activated on a short-term basis for a specific restructuring or embedded as an ongoing benefit for all exits. 

Outplacement can scale to support employees at every level — from executives and managers to individual contributors and frontline staff — and organizations of all sizes. Because no two transitions are alike, the best providers tailor scope, duration and delivery to fit your organization’s needs.

• Companies of every size: Support global enterprises, mid-sized and small businesses with models that fit different footprints and budgets.
• Programs of every scale:  Offer multi-year agreements with governance and reporting or one-off projects for single events, with the option to run ongoing or time-bound programs.
• Solutions for every level and role: Tailor services to executives, managers and staff so support matches search complexity and seniority.
• Global reach: Deliver consistently across 100+ countries with local expertise, languages and compliance.
• Flexible models: Adapt by region, function, industry and job level, customizing scope and duration to specific employer needs.

Companies often implement outplacement support when they’re facing layoffs or workforce restructuring. They realize that treating employees with care and compassion is more than just the right thing to do — it’s good business. People are the heart of your company and how you treat them at all stages of the talent life cycle — including at departure — matters. It says a lot about your company and its values. That’s why many companies choose to implement outplacement services on an ongoing basis, to support all exiting employees, even when they’re not facing immediate layoffs.

Your actions during the disruption will impact everything from morale and productivity to recruitment and retention, as well as your overall brand perception. Getting it wrong can damage your social presence, stall recruitment and lead to costly legal liability.

Remaining employees will also feel the impact, which may result in reduced productivity, lower engagement and higher churn rates. Additionally, your corporate brand is at risk, which can impact revenue and bottom-line results. Layoffs expose your organization to significant risks, but outplacement services help mitigate these risks.

Outplacement services are a vital resource and an essential workforce strategy when your organization faces the consequences of layoffs. By investing in outplacement, organizations demonstrate that they value all employees throughout the talent life cycle.

Outplacement has a long-lasting impact on your reputation, your ability to attract and retain top talent and your future business success. Leading employers now make outplacement a standard practice, providing their people with valuable support while safeguarding their employer brand.

Through outplacement services, a blend of expert career coaches, personal branding writers, recruiters and technology innovations helps impacted employees find new opportunities with speed, efficiency and confidence. Outplacement participants can expect:

• Faster paths to new opportunities: Coaching and resume writing can significantly reduce the time it takes to land a new position.
• Personalized experiences: The goal is to help affected employees land an equal- or better-paying job.
• Greater networking opportunities: Technology and coaching resources optimize best practices in networking. 
• Reskilling opportunities: Clear learning pathways and certifications enable credible pivots into future-proof roles.
• A big confidence boost: Career transition support and empathy can help reduce anxiety and improve overall well-being.

When layoffs affect senior leadership, some outplacement firms provide executive-level services to meet the unique challenges of executive departures. For example, executives may face longer search times and fewer viable opportunities. Executive searches often require elevated service levels due to higher visibility and broader demands. If leadership teams are affected by layoffs, it’s essential to have expert, executive-level coaches, writers and recruiters to meet their complex needs and requirements.

Other tailored outplacement solutions can include dedicated on-site career centers offering in-person support for employees at every level — from production staff to senior management. Equipped with workstations and access to technology, these centers provide hands-on assistance and comprehensive support that’s particularly valuable to employees who have not conducted a job search in years or who have limited internet access. This approach creates a familiar and convenient environment where employees can update resumes, explore new opportunities and move forward with confidence.

The cost of outplacement varies depending on specific company needs and the professional level of the impacted employees. Pricing varies by volume, level, scope, duration as well as any add-on services. Most employers find that program costs are offset by avoided risks and value created through brand protection, steadier teams and better outcomes. Faster time to land, pay parity or better for many participants, strong satisfaction and steadier productivity among those who remain. For more details about cost and ROI, see chapter 7.

Outplacement costs can vary based on the:

1. Number of impacted employees
2. Scope of services offered, including length of coaching time, resume critique vs. writing, etc.
3. Incremental services such as skill workshops, career development and programs for retained employees

There are high risks — and high costs — associated with handling layoffs poorly. With outplacement services, you strengthen your employer brand and your ability to attract and retain great talent. This means reduced recruiting expenses and increased productivity from remaining employees.

The goodwill that results from doing the right thing can also improve retention rates, leading to substantial savings. According to Gallup, replacing employees can cost up to as much as 200% of salary for leaders and managers, 80% for technical roles and 40% for frontline employees. By helping employees transition confidently and maintaining morale among those who remain, outplacement reduces those preventable costs and strengthens organizational resilience.

Outplacement services also help reduce the risk of legal and unemployment tax fees in some markets, while protecting your company's reputation, which can take a major hit (along with sales and customer sentiment) from poorly handled layoffs.

When the positive impact of outplacement services is considered in its entirety, it becomes clear that the ROI is substantial.

Not all outplacement services are created equal. Choosing a partner and a solution is a strategic business decision that will have far-reaching implications for your people and your business. Your partnership with an outplacement services provider could be long-term, as your business needs fluctuate, or short-term to address a one-off need or specific project. 

You’ll want to evaluate all aspects of your outplacement needs and how the outplacement services provider can meet your requirements. This includes the professionals that will support you, the scope of services and technology resources available, and the organization’s ability to scale in terms of size and geographies.

The best outplacement firms offer tech-and-touch solutions that combine the latest technology with the support of top-performing coaches, resume writers and advisors. When evaluating outplacement companies, look for providers that align with your company’s values, offer flexible and personalized services, can scale as quickly as your needs change and utilize accessible technology.

1. Do you provide support beyond severance, including coaching and career tools?
2. Do you offer reskilling and internal mobility alongside outplacement?
3. Are managers prepared to communicate change with clarity, empathy and confidence?
4. Can your program scale across levels, functions and geographies?
5. Do departing employees remain positive about your company and act as alumni advocates?

1. Frame outplacement as a business strategy — not a benefit — to safeguard brand, culture and agility.
2. Use measurable outcomes, such as time to land, quality of re-employment, participant and client NPS scores, and alumni advocacy to prove ROI.
3. Connect outplacement to redeployment and skills-based workforce planning for a holistic approach to managing change.

• how do career transitions work today?
• what is redeployment?
• how to plan for restructuring.
• building the business case: from risk to ROI.
• RFP essentials & choosing the right provider.
• delivering globally with local care.