Outplacement, defined
Outplacement services help laid-off employees find new employment. As part of a severance package, responsible companies pay professionals to help impacted employees find their next job, with resume preparation, interview coaching, networking support and job-search tools.
What outplacement services include
Programs scale with the level of the employee:
- Individual contributors: e-lessons, webinars, a live job feed, discussion forums, research support, resume review and a cover letter
- Managers: add professional resume writing and social consulting
- Senior managers: add interview preparation, negotiation training, career assessment, 1:1 virtual coaching and a LinkedIn makeover
- Executives: add 360 and DISC assessments, a dedicated executive coach and in-person coaching
Who pays for outplacement?
The employer. Outplacement is a company-paid benefit, typically offered alongside severance pay.
How much does outplacement cost?
Prices vary by level, volume and duration. Careers Launch publishes its prices: $795, $2,995, $3,995 and $5,995 per employee across four tiers. Compare outplacement pricing.
Why companies offer outplacement
- Reputation. 80% of Americans say outplacement makes them less likely to speak poorly of the company they're leaving (The Harris Poll).
- The people who stay. During layoffs, surviving employees have shown a 41% drop in job satisfaction and a 20% drop in performance (Harvard Business Review). Seeing colleagues looked after helps.
- Cost. Employees with outplacement find work twice as fast, which lowers unemployment and severance costs. And a poor reputation can cost up to 10% more per hire.
- Risk. Outplacement reduces animosity during the transition, lowering the risk of wrongful-termination claims.
When to plan outplacement
Before the notification meetings. Employees should hear about their support in the same conversation in which they learn their role is ending.
Choosing an outplacement firm
Look for coaching quality, flexibility to match your values, a network that actually reaches hiring managers, transparent pricing and a commitment to stay with each employee until they land. How Careers Launch approaches outplacement.
