What are Outplacement Services?

As you consider what are outplacement services, you likely want to understand how they support your exiting employees and protect your organization. Outplacement services are offered to employees affected by involuntary separations. The need for these services has been on the rise in 2020 due to cost cutting measures in response to the pandemic.

As you evaluate your talent needs and long-term strategies, keep these key items in mind as you consider which outplacement services to include in your severance packages.

What are Outplacement Services?

Outplacement services, also known as career transition services, are coaching programs that help separated employees land their next position faster. These services are paid for by the employer, providing free career services to the exiting employee.

Exceptional outplacement services place a strong emphasis on personal branding and coaching. Career coaches who are experts in job searches guide the individual to create strong branding strategy to market themselves online. They help former employees optimize their efforts by aligning them with the technology and processes employed by today’s hiring managers. Today, the services extend well beyond resume writing and access to job boards. A coach has a critical role in helping people transition successfully.

What are Outplacement Services for HR & Your Organization?

The decision to lay off employees is a heavy one for multiple areas within your organization. Outplacement services aren’t just for the exiting employees. They are also available to support the HR team and those who are managing the layoffs. Outplacement firms walk alongside you as you progress through each phase of the staff reduction.

Outplacement services for your organization include:

The format these services take varies. Options include consulting, strategic planning, career coaching, job search programs, group workshops, and team trainings.

What are Outplacement Services for Exiting Employees?

Job seekers who work with professional outplacement services find work more than 2.5 times faster than those who don’t. Exiting employees benefit from one-on-one coaching that is tailored to their unique needs and career goals. Along with coaching support, the outplacement services include online tools and resources, career assessments, mock interview scenarios, salary research, social media assistance, and so much more.

What Outplacement Services are Not

Outplacement is not akin to a personal shopper who does all the work. An outplacement coach does not procure jobs, place people in jobs, or apply for jobs on behalf of the job seeker. The coach is an expert in hiring processes and trends. Coaches work with the job seeker to overcome any obstacles in finding a new job. They may work on building a stronger personal brand, interviewing skills, networking habits, or even managing the emotional toll of job loss.

Outplacement Outcomes – Empathy & Experience Work

At IMPACT Group, job search coaching is a core competency. We support people through career transition during good and bad economies, offering job search services for participants in outplacement programs as well as for people who are moving to new communities (due to corporate relocation of a spouse or partner). So no matter what the economy is doing, job search support is our continuous mission. And, we’ve developed competencies, processes, and technology tools that get results.

Participants in our programs benefit from the experience of our coaches who understand how employers use social platforms and automation to find talent. We also support job searches with the emotional side of the process. Empathy and understanding help job candidates stay positive, active, committed, and open to new opportunities.

Outplacement Costs

Outplacement is usually priced as a fixed fee per employee, no matter how long it takes the person to find a job. IMPACT Group works with Fortune 500 organizations as well as small businesses. We easily support a layoff of hundreds or just one or two associates at a time, and we work within almost any budget.

What are Outplacement Services Benefits?

Displays social consciousness.

During this 2020 pandemic, many people believe businesses must do everything in their power to keep people working. Outplacement signals a social consciousness, while taking cost control measures. Public announcements of layoffs often mention outplacement services. That’s because taking care of separating employees makes a meaningful statement.
Reduce the risk of litigation.

An experienced outplacement partner helps you process the criteria you will use to determine who is being let go. Similarly, the partner will also analyze the affect it has on the diversity of your staff. It’s also important to review applicable laws to ensure compliance.

Protects your brand reputation.

Ninety percent (90%) of professionals state they will not work for an organization that has a bad reputation.1 In other words, maintain a positive brand because it allows you to attract the best talent when you enter times of growth. Taking strategic steps along the way will ensure you uphold an employer of choice culture.

Creates a clear message to communicate internally and externally.

Determine the rationale behind the layoffs and the business reasons for reducing staff. In other words, it’s essential to put these two things into words so you can accurately and clearly share them. Communicate this to exiting employees, remaining employees, stakeholders, and the public, for instance.

Compassionately supports your separated employees with quickly getting back on their feet.

Many professionals are caught off guard when they lose their job and are offered outplacement services. Provide exiting employees with job search assistance through an outplacement partner because it empowers them to find a new position fast. When a former employee cuts their job search in half compared to the national average, your organization drastically reduces your unemployment compensation costs.
Enhance productivity and retention among remaining employees.

Employers paid $600 billion in turnover costs in 2018. They can expect that number to increase to $680 billion by 2020.2 As a result, reducing your voluntary turnover rate by even 1% can deliver significant savings. Proactively address your remaining staff’s questions and needs because this upholds morale and rebuilds confidence in your company’s future.

Minimizes survivor anxiety and accelerates forward mobility.

Remaining employees often combat survivor syndrome on top of mounting workloads. Ultimately, this leads to a lot of frustration. To get everyone working toward a common goal, you need a plan that addresses workload changes, manager changes, and team rebuilding. As a result, transparency throughout the process will ensure they buy into the future state.

How Do You Prepare for Layoff Conversations?

Who will deliver the news, how the news will be shared, and what should and shouldn’t be discussed are key factors to consider during employee layoffs. Our free guide provides 15 expert tips on delivering the news to your key audiences, including separated employees, remaining employees, clients, and the general public. Get your copy now!


1 IMPACT Group Relocation & Job Seeker Survey, 2018

2 National Employee Retention Report, Work Institute