Artificial intelligence (AI) is changing what outplacement services cost and how companies deliver them to laid-off and other departing employees. AI tools can now automate resume optimization, interview preparation, and job matching, making it easier to give employees more personalized support during career transitions. As these technologies become more common, understanding the many drivers of outplacement costs will remain crucial for making informed budgeting decisions.
What Determines Outplacement Services Cost?
Several factors influence the cost of outplacement services, including the scope of services, the provider, and the recipients. Broadly speaking, how much you can expect to pay comes down to the following factors:
Career Coaching Depth
Personalized guidance from certified coaches helps employees cope with job loss and prepare themselves for a new role. However, the depth and quality of the coaching they receive can significantly affect pricing. For example, programs for senior executives and those in niche roles may require more extensive coaching services, such as leadership assessments and evaluations.
Technology Platforms
Outplacement programs often include resume builders, interview preparation resources, and networking platforms. These tools are typically delivered through centralized systems that also support virtual coaching, progress tracking, and other capabilities. AI enhancements streamline many of these functions and make them more affordable.
Program Duration and Service Scope
Longer programs, which often include extended coaching and more one-on-one support, tend to be more expensive. The level of program customization also impacts cost, especially when you need to tailor services to different job levels and employee needs.
Coach Expertise
Great coaches get results, but they may also cost more because their expertise adds such tremendous value. At IMPACT Group, we invest in coach development through ongoing training and performance reviews to ensure consistent, high-quality service.
How AI Affects What Outplacement Services Cost
AI lowers outplacement costs by helping companies support more people at once. Many of the tools that support cover letter writing, LinkedIn profile updates, and job search organization now use AI to offer personalized suggestions and automate tasks that were previously done manually. Additionally, virtual career assistants use AI to simulate interview scenarios and provide real-time feedback. As a result, job seekers can prepare more effectively for conversations with prospective employers.
Keep in mind that while AI innovations can lower the cost-of-service delivery, they can’t replace the value of a human outplacement coach. The best outplacement programs combine AI efficiency with human expertise to deliver measurable outcomes to employees and employers.
How to Maximize Your Outplacement ROI
By protecting your brand and supporting your workforce, effective outplacement services deliver a strong return on your investment. Conversely, not offering outplacement or providing very limited support can cost you more in the long term. These may include lower morale among remaining staff, increased turnover, negative reviews on sites like Glassdoor, and longer re-employment periods that raise unemployment insurance expenses.
For a positive outplacement ROI, track metrics that matter, such as:
- Job Placement Rate and Timeframe: Outplacement support helps employees secure new jobs more quickly. In fact, job seekers with professional outplacement support find new roles more than 2.5 times faster than those without it.
- Alumni Success: Personalized coaching that reinforces skills such as negotiation can help former employees feel less urgency to accept the first offer and instead pursue roles that better match their strengths and career goals.
- Coaching Effectiveness: Tracking participant feedback and engagement levels can tell you how well coaching helps individuals prepare for and secure new job opportunities.
- Brand Protection: A well-managed offboarding process can limit reputational risk and negative employee reviews. Gallup found that employees who have a positive exit experience are nearly three times more likely to recommend their former employer to others.
Outplacement Cost Summary
Pricing models vary across providers. In general, the length of the program and the experience-level of the coach drive pricing. Typical cost for a three-month program that offers access to a coach for two to four sessions ranges from $1,000 to $3,000 per person. Executive programs are typically longer length and require executive coaches. These programs may cost $5,000 to $35,000, depending upon the program offering.
Programs that offer group coaching – where individuals can log onto a meeting or webinar via Zoom or Teams, for example, can cost less. These programs are beneficial. Often someone may benefit from a question that another job seeker asks.
Large employers or those conducting a large lay off can also negotiate volume discounts. Some providers charge set up fees. At IMPACT Group, we only charge clients for those who engage in the program. If your layoff affects 35 people, maybe only 30 request outplacement support. That’s because some may already have other jobs lined up, others may want to return to school or take a career break. IMPACT Group’s price would be only for those who engage in the program. Our contracts are transparent, and our services are customizable to meet your unique needs without compromising quality.
Outplacement Cost vs. Value
In outplacement, as in all things, buyers should look at cost vs value. Some extremely low-cost outplacement products may do more harm than good. Should you offer a benefit that is woefully lacking, it could cause exiting employees to feel even worse about the separation. Employers that don’t offer high-quality outplacement coaching and services are likely to be subjected to various in-person and online rebuke, such as, “After 10 years, this is how they treated me?”
With 93% of organizations worried about talent retention, outplacement is worth the investment to protect your brand and help retain your remaining staff when laying staff off.
Protect Your Brand and Your People
Outplacement is a strategic investment in your workforce and company reputation. In the age of AI, it’s more scalable and cost-efficient than ever, but only when paired with the right expertise and program design.
IMPACT Group helps you deliver high-value outplacement support that matches your budget and strategic goals. Our customizable programs, transparent pricing, and blend of AI tools with human coaching ensure your employees receive the support they need and your organization gets the ROI it deserves.
Ready to explore your options? Book a call with our team and get our step-by-step guide to selecting the best outplacement provider for your workforce needs.
