Outplacement FAQ

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

What is outplacement?

Outplacement is a service that employers can offer whenever they terminate an employee to support outgoing employees in their next career move. No matter if they are looking to stay working in their current industry, shifting into retirement, or exploring entrepreneurship opportunities, outplacement offers a chance to give employees support in their next steps toward a fulfilling future.

How does outplacement work?

Outplacement works by pairing the exiting employee with a career coach and resources to help them determine the next steps following a layoff. 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.

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

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 résumé / CV
• Personal branding and networking plan
• Interview prep simulation and coaching
• Offer negotiation strategy

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. For example, these employees may be early in their careers or approaching senior levels, so they will need guidance that helps them establish their personal brand, improve their resume, and take steps towards pursuing their next role.

Senior level employees, however, who may have already established their personal brand and have a strong network, may seek out career changes such as working in a new industry or starting their own business. If they are near retirement age, they may seek out 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 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.

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.

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

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 Score following surveys conducting about their experience). A strong candidate experience leads to higher engagement and better outcomes.
• Support for diverse populations and career paths