What Is Outplacement? A Beginner’s Guide

Layoffs and workforce reductions are difficult for both employers and employees. Outplacement services provide a strategic solution to help departing employees transition smoothly into new careers. By offering personalized career coaching, job search training, and access to valuable resources, you can mitigate the negative impact of layoffs and enhance your reputation.

In this guide, we’ll explore what outplacement is, when it’s needed, and how to choose the right outplacement provider for your organization.

Outplacement is a support service for employees leaving a company, typically due to layoffs or restructuring. This service, provided by an expert firm hired by the employer, offers resources and guidance to help these individuals to transition smoothly into their next career opportunity.

Outplacement is often included in severance packages during layoffs, helping organizations to support departing employees while protecting their reputation. Outplacement providers range from boutique firms to large organizations, and many companies choose flexible partners that can manage significant employee transitions.

The typícal objectives of organizations that offer outplacement are:

1. Support affected employees: Providing practical help during a challenging period reflects care and responsibility toward employees.

2. Protect employer reputation: Offering outplacement shows empathy and can enhance a company’s brand image among current employees, future hires, and the public.

3. Maintain morale and productivity: Outplacement reassures remaining employees that the organization values its people, helping to minimize workplace disruption.

4. Reduce legal risks: Supporting departing employees can lower the chances of grievances or legal claims related to termination.

It’s safe to say that outplacement is a win-win approach. While the departing employees get valuable assistance, reducing the stress of looking for a new job, the company demonstrates responsibility, maintaining a positive relationship with its workforce and stakeholders.

STATISTICAL INSIGHT

Between 5% and 10% of Canadian employees experience a permanent layoff each year.

Source: Government of Canada, 2022

When do companies resort to outplacement?

Usually, a business resorts to outplacement services when preparing for a layoff or workforce reduction event. These are the most typical situations that lead to layoffs and, therefore, might lead your company to offer outplacement services for impacted employees:

• Restructuring and downsizing
• Operational cost reduction
• Plant closures and office relocations
• Poor business performance
• Poor employee performance
• Mergers or acquisitions
• Economic downturn
• Changes in business strategy

STATISTICAL INSIGHT

In 2024, 15.6% more people are searching for work or on temporary layoff in Canada than in the previous year.

Source: Labour Force Survey, Statistics Canada, October 2024.

What services are available through outplacement firms?

Outplacement firms offer many different services, but the main ones are career coaching, job market resources, resume and LinkedIn assistance, and interview preparation. Let’s look at the typical services most outplacement providers offer and how they can make a difference.

Virtually all outplacement services involve career coaching, pairing employees with experts who help them to assess strengths, prepare for interviews, and navigate job opportunities. Modern providers leverage technology to offer flexible support, often allowing participants to choose between in-person or virtual coaching sessions, with most preferring the convenience and adaptability of virtual meetings.

Coaches are central in tailoring the process to each participant’s needs, whether senior executives or individual contributors. Acting as expert guides, they help participants to navigate the job market, leverage technology to stand out, and make informed career decisions from application to job acceptance.

In addition to career coaching, many outplacement services offer online databases, tools, training, and other resources to empower employees to research and strategize for their next role independently. This approach reflects the flexibility of modern, technology-driven outplacement, adapting to each participant’s needs and allowing them to explore opportunities on their own schedule.

Modern outplacement providers recognize the shift to a fully digital job market, where optimizing online profiles, navigating job boards, and tailoring resumes are essential skills. By offering this comprehensive support, employees can secure new roles more efficiently. This reduces financial strain and stress while safeguarding the company’s reputation.

Another essential outplacement service is assisting participants with improving their resumes and building LinkedIn profiles. By creating polished, tailored CVs, compelling cover letters, and enticing social profiles, job seekers will better showcase their skills and achievements and be closer to landing their next meaningful job.

An optimized LinkedIn profile can increase visibility and appeal to recruiters. Participants are supported in crafting strong headlines, highlighting key accomplishments, and using keywords to match job postings. By aligning resumes and profiles with current market expectations, participants can effectively stand out to hiring managers and improve their chances of landing interviews.

Interview preparation is vital to outplacement services, helping participants build confidence and perform effectively. They refine their responses to standard and industry-specific questions through tailored practice sessions, highlighting their skills and strengths. Coaches provide personalized feedback to address nervousness and improve presentation.

Participants also learn strategies for answering behavioural questions, addressing career gaps, and presenting a strong personal narrative. Insights on reading interviewers’ cues, asking thoughtful questions, and leaving a lasting impression further enhance their readiness. With these tools, participants can approach interviews feeling confident and poised, increasing their chances of securing their next role.

To answer the question, “What is outplacement?” we need to address the fundamental features any outplacement firm should put on the table. In our experience, the best outplacement firms offer a tech-driven approach, no retainer fees, a proven record, total flexibility, and other elements to make your program more successful. Let’s see in detail what those key aspects are.

Until placement is a type of outplacement support that lasts until the participant secures a new job. This is the opposite of what most outplacement providers offer: they only support participants for a limited time, with their arrangements typically lasting one to three months.

Careerminds provides “Until placement” outplacement services to its partners and departing employees. Instead of only working with participants for a limited time, we give them continuous support until they find their next position, staying beside them throughout their journeys.

The majority of outplacement providers charge retainer fees to clients, meaning you could pay for services even when you don’t use them. The situation can be worse if your contract establishes term limits, as seen above: not only will your outgoing staff be at risk of not finding new jobs as expected, but you’ll spend money unnecessarily when no layoff plan is in place.

It’s not the case with Careerminds. Since we charge no retainer fees, there are no extra costs or hidden fees when you don’t need our services. However, when businesses need our help, they know we’ll be by the participants’ side until they find a new opportunity. Let’s put it this way: you don’t pay anything to retain our services and our agreement will remain valid with no added cost.

When selecting an outplacement services provider, it’s essential to carefully assess the career coaching they offer. Look for professional, experienced coaches who can deliver personalized, one-on-one support tailored to individual needs. Also, ensure the provider accommodates a diverse range of employees, from entry-level staff to senior executives, and that they strive to make meaningful matches between coaches and participants rather than assigning them randomly. A dedicated, well-matched coach is critical in supporting employees through transitions and setting them up for success in their next career steps.

The rise of technology and remote work has driven a significant shift to virtual outplacement solutions. These solutions offer a cost-effective, convenient alternative to traditional methods and empower employers and employees in transition. By aligning with modern trends, providers can deliver innovative solutions that support career growth in an increasingly digital world.

At Careerminds, we’re at the forefront of this transformation, leveraging advanced AI job search tools and personalized, one-on-one career coaching. Our virtual outplacement programs are based on cutting-edge, proprietary technology tailored to meet the needs of professionals at all levels, from individual contributors to senior executives, regardless of their location. 

Flexible and customizable outplacement services provide significant benefits by addressing the diverse needs of a company’s workforce. You’ll ensure employees at all levels, from entry-level to executives, receive personalized support according to their needs, circumstances, goals, and experience level. This approach enhances the employee experience, strengthens the company’s reputation, and reflects a commitment to supporting people during career changes.

For businesses, those flexible, customizable outplacement programs align with company values and culture, fostering a positive transition experience. After all, outplacement isn’t about employees landing just any job, but getting the positions they want, are good at, and find meaningful. 

Outplacement firms should go beyond helping employees transition and safeguarding your business. They should act as thought leaders in HR, staying ahead of industry trends and offering access to experts who can guide your company through complex career transition challenges. Their role extends to providing insights and strategies that help businesses to navigate potential issues, ensuring a smoother and more effective outplacement process for all involved.

A tech-driven, well-connected outplacement provider – like Careerminds – can be a valuable partner, offering cutting-edge solutions and a deep understanding of the evolving HR landscape. By leveraging their expertise, you can address your transition needs comprehensively and confidently, ensuring your company and employees receive the best support available.

Your outplacement provider should be a strategic partner for your organization. As the job market changes, you must ensure that your outplacement provider will adapt and stay on top of new trends and technology while maintaining a flexible, transparent approach and reassuring you that your departing employees will be in good hands.

Finally, as with any serious service provider, you must choose an outplacement firm that can demonstrate positive results. This includes analyzing its past case studies and success stories, asking for client reviews, and assessing its engagement rates.

Results reflect in metrics and numbers, so your outplacement partner should be able to share participant data, surveys, and other transparent information you can review to monitor how your program is going. With this level of visibility, you’ll be able to understand if you made the right decision and measure your return on investment.

If you keep these criteria in mind when you start searching for or evaluating your current provider’s services (and reassess those elements as time passes), you’ll increase your chances of implementing a successful outplacement strategy.

Outplacement offers a valuable solution for employers facing workforce reductions. By providing comprehensive career coaching and digital tools, outplacement firms empower departing employees to transition smoothly into new roles. This approach not only benefits employees but also enhances the employer’s reputation as a caring organization.

Careerminds is committed to making outplacement a stress-free process for both employers and employees. As a leading outplacement provider, we leverage cutting-edge technology and experienced career coaches to help individuals find fulfilling careers. If you’re considering outplacement, contact us and explore how Careerminds can support your organization’s needs.

Rafael Spuldar

Rafael is a content writer, editor, and strategist with over 20 years of experience working with digital media, marketing agencies, and Tech companies. He started his career as a journalist: his past jobs included some of the world's most renowned media organizations, such as the BBC and Thomson Reuters. After shifting into content marketing, he specialized in B2B content, mainly in the Tech and SaaS industries. In this field, Rafael could leverage his previously acquired skills (as an interviewer, fact-checker, and copy editor) to create compelling, valuable, and performing content pieces for various companies. Rafael is into cinema, music, literature, food, wine, and sports (mainly soccer, tennis, and NBA).