Outplacement FAQ

If your company is reorganizing or going through a reduction in force (RIF), it is important to understand what outplacement is, how it works, and how outplacement benefits not only your organization but also outgoing employees. A successful outplacement experience begins with understanding these basics and making sound decisions when choosing an outplacement provider.

Whether you’re evaluating options for the first time or looking to improve your current approach, you likely have questions about how outplacement programs are structured, what services are included, and how they support both individuals and the business during transition.

Read our most outplacement services frequently asked questions and their answers.

What is outplacement?

Outplacement is a career transition support service that employers offer employees whose job have been eliminated or who are being terminated for other reasons. Job search support is a key deliverable, however, while some exiting employees may want to find a similar job in the same industry, others may want to change jobs, shift i into retirement, or explore entrepreneurship opportunities. While most outplacement firms focus solely on re-employment, some firms, such as IMPACT Group, help people through all these types of transitions.

How does outplacement work?

Outplacement works by pairing the exiting employee with a career coach and resources to help them determine their next steps. Each person may have different goals and needs, so an outplacement coach can work with them to figure out what they are looking for next, then provide resources to help them.

For employees, outplacement provides critical guidance and resources to help them transition more quickly and confidently into new roles. Outplacement includes but is not limited to:

• Career coaching
• Personal branding, which includes resume support and LinkedIn optimization
• Interview preparation
• Job search strategy

Are employers legally required to offer outplacement?

No, employers are not legally required to provide outplacement services. Outplacement is a voluntary benefit that organizations choose to offer to employees affected by layoffs or restructuring. While it isn’t mandated by law, many employers include outplacement as part of their severance or transition support packages because it delivers clear advantages for both the organization and its people.

Outplacement is widely regarded as a best practice during layoffs or reorganizations, especially for employers focused on minimizing disruption and maintaining goodwill throughout the transition process. So although it’s not a legal obligation to provide outplacement, employers must comply with other state and federal laws that pertain to employee exits. (See below.)

What is the WARN Act?

The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires certain employers to provide advance written notice—typically sixty days—before conducting large-scale layoffs or plant closings. The goal of the WARN Act is to give employees and their families time to prepare for the employment transition, seek new work, or pursue retraining opportunities.

The WARN Act generally applies to employers with 100 or more full-time employees, and it covers layoffs that affect fifty or more employees at a single worksite during a 30-day period. Failing to comply with the WARN Act can result in penalties, including back pay and benefits for affected employees for up to 60 days.

How does the federal WARN Act differ from state WARN Acts?

Many states have their own versions of the WARN Act—often referred to as “mini-WARN” laws—that expand upon or modify the federal requirements. These state laws may apply to smaller employers, require longer notice periods, or broaden the definition of what constitutes a covered layoff or closure.

For example, some states lower the threshold for the number of affected employees, while others extend the notice requirement to ninety days instead of sixty. Because state requirements can differ significantly, it’s important for employers to review both federal and state WARN laws to ensure full compliance when planning a reduction in force (RIF) or facility closure.

What is the Age Discrimination in Employment Act (ADEA)?

The Age Discrimination in Employment Act of 1967 (ADEA) is a federal law that protects individuals who are forty years of age or older from discrimination in the workplace based on age. The ADEA applies to employers with twenty or more employees, including private companies, state and local governments, employment agencies, and labor organizations.

Under the ADEA, it is unlawful for employers to make decisions about hiring, firing, promotions, compensation, benefits, job assignments, training, or any other term or condition of employment based on an employee’s or applicant’s age. The law also prohibits harassment related to age and retaliation against individuals who file a complaint or participate in an ADEA-related investigation or proceeding.

In the context of layoffs or RIFs, the ADEA has specific requirements to ensure older workers are not disproportionately impacted. Employers must also comply with the Older Workers Benefit Protection Act (OWBPA)—an amendment to the ADEA—which outlines strict rules around waivers of age discrimination claims and requires employers to provide clear, written disclosures when offering severance agreements to employees aged 40 and over.

What is the Older Workers Benefit Protection Act (OWBPA)?

The Older Workers Benefit Protection Act (OWBPA) is an amendment to the Age Discrimination in Employment Act (ADEA) that provides specific protections for employees aged forty and older during employment transitions such as layoffs, reductions in force (RIFs), or severance programs.

The OWBPA ensures that when older employees are asked to sign a waiver of age discrimination claims—often as part of a severance agreement—they do so knowingly and voluntarily. To comply with the OWBPA, employers must meet strict requirements, including:

• Clear, written language: The waiver must be easy to understand and free of legal jargon or technical terms.
• Specific reference to ADEA rights: The agreement must explicitly mention that it covers rights under the ADEA.
• Consideration period: Employees must be given at least twenty-one days to review the agreement (or 45 days in the case of a group layoff or RIF).
• Revocation period: After signing, employees have seven days to revoke their acceptance.
• Additional disclosures in group layoffs: Employers must provide written information about the job titles and ages of employees who are selected and not selected for the layoff, so individuals can assess whether the decision may have been influenced by age.

Compliance with the OWBPA is critical during layoffs. If an employer fails to meet its requirements, any waiver of age discrimination claims may be deemed invalid, leaving the organization exposed to potential legal challenges.

Can you customize outplacement programs to fit organizational needs?

Yes! The length of outplacement coaching and other services can vary and be customized to fit your organization’s needs as well as the needs of participants. Outgoing employees may have options such as career coaching, resume assistance, and networking help, among other avenues to help in taking the next step in their career.

What can job seekers expect from outplacement services?

Job seekers can expect outplacement services to cover a wide range of topics and needs including but not limited to:

• One-on-one career coaching and career assessment
• Job search strategy
• Professionally written resume / CV
• Personal branding that includes LinkedIn profile optimization
• Networking plan
• Interview prep simulation and coaching
• Offer negotiation strategy
• Tech support, such as AI-enabled tools to help job seekers see alignment between a job opening and their resume

Outplacement services offer job seekers a number of options that allow them to have the best application they can in the job hunt, as well as feel fully prepared for the interview portion of the hiring process.

How do you support individuals at different career levels?

Entry level to mid-level individuals may receive different outplacement services than executive-level employees. Employees who are early in their careers will approach personal branding and networking differently than senior level job seekers, who may have a wider network and more content to edit out the less experienced job seeker. Both need guidance that helps them establish their personal brand, improve their resume, and take steps towards pursuing their next role. 

Senior level employees who may have already established their personal brand and have a strong network might also seek out career changes such as working in a new industry or starting their own business. If they are near retirement age, they may request assistance with volunteering, joining an executive board, or working part-time as a consultant.  

Do employees near retirement age want or need outplacement?

Yes – people in their 60s will benefit from career transition coaching – whether they are transitioning to a new, similar position, or not. Keep in mind that “retirement age” is an indefinite number. According to the U.S. Bureau of Labor Statistics (BLS) projections, the number of older adults in the workforce will continue to grow over the next decade. Adults ages 65 and older are projected to be 8.6% of the labor force (those working and looking for work) in 2032, up from 6.6% in 2022. Older adults are projected to account for 57% of labor force growth over this period.

Many employees over 60 want to continue working but, if they haven’t searched for a job in many years, may need help navigating today’s highly automated hiring process. They will benefit from expert guidance to leverage social media and how to update their resume so it conforms with today’s Applicant Tracking Systems (ATS) protocols. Other older adults may want to work part time, change industries, or work as a consultant, gig worker or contractor.

At IMPACT Group, we go beyond traditional job search. Our coaches are experts in helping people transition successfully – which may mean starting a business, volunteering or establishing their own mix of active retirement pursuits. No matter an employee’s age or experience, outplacement has something to offer them.

How long do outplacement programs typically last?

Outplacement programs can last from about two months to up to 12 months, depending on how much support the participant needs and how much the organization is willing to invest in outplacement coaching.

What are some common outplacement challenges?

Both companies and coaches face challenges as outplacement services begin.

First, companies who engage in outplacement may face challenges in explaining how it can help outgoing employees, which may lead to a low uptake in services. Clear, effective communication about the process can allow HR buyers and other stakeholders to see more successful outplacement participation.

Another challenge companies may face while outplacement takes place is how the layoff may affect the employer brand and remaining employee morale. As with communication with outgoing employees, companies should not neglect giving employees that are staying reassurance that the company is doing what it can to support their peers through the separation.

Some companies that are considering outplacement for separating employees may feel that budget constraints keep them from offering enough support. However, many outplacement vendors understand the need to be flexible and can work with you to determine fair services for those separating from the organization who will engage with outplacement. They know that companies have diverse workforces with a wide variety of backgrounds and needs.

For coaches, challenges with outplacement may include that job seekers from an outgoing company may be experiencing psychological strain and uncertainty, leaving them feeling less confident as they start to engage in outplacement.

Do outplacement coaches provide emotional support?

The best outplacement coaches are well prepared to go beyond the “business” or mechanics of job search.  And this is often where the value of outplacement comes in. That’s because, often times the biggest challenge is helping people   with the emotions of job loss, which can include psychological strain and uncertainty, and even grief as they grieve the loss of the relationships, status and income connected with their former position.  These feelings can leave job seekers feeling angry, depressed, and less confident about their future.   

An angry former employee is a risk factor to any business. However, someone who experiences a successful transition can become a lifelong brand ambassador. 

The goal of the coach is to address these feelings and prevent them from becoming obstacles to a successful transition.  

Why is outplacement important for employees?

Employees who are offered outplacement and participate in its services may come away with the sense that their former employer wants to look out for their best interests. Rather than simply receiving a severance check following a layoff, outplacement gives employees a chance to feel supported in the next step of their career, opening opportunities they may not have thought about.

What is the business case for outplacement?

There are many reasons outplacement is a good choice for companies undergoing reorganization or a RIF. Some benefits include:

• Improvements with unemployment cost management
• Facilitating the navigation of potential legal compliance issues
• Improvements on employer brand and remaining employee morale
• Upskilled talent that is available for future rehire

How can HR ensure successful outplacement?

First, select an outplacement provider with a proven track record.

Second, provide the outplacement company with accurate employee contact information so they can offer a turnkey solution. The outplacement provider is best positioned to reach out as an empathetic counselor and explain the benefits of outplacement to the separated employee.

Therefore, when preparing for a layoff, take time to update employee contact information. If the exiting employees have company-issued cell phones, be sure to collect personal phone numbers as well as personal email addresses. This is essential to a good outplacement experience.

How do you compare outplacement vendors?

When selecting an outplacement vendor, look at their services, candidate support, technology, success rates, and how well they align with your organization’s values. Think about both the experience for impacted employees and the insights they provide to HR.

Other ways to evaluate the outplacement vendors you are considering may include:

• How long participants receive support (e.g., 1 month, 6 months, until placement)
• Coach qualifications and availability
• Ease of using their platform or mobile access
• Feedback from past participants (e.g., satisfaction scores or Net Promoter Scores ). A strong candidate experience leads to higher engagement and better outcomes.
• Support for diverse populations and career paths