Understanding Outplacement Services for Career Transitions

Outplacement services, also known as career transition services, are programs designed to support employees who have been laid off or terminated from their jobs. These services help individuals navigate the challenges of job loss and successfully transition into new roles.

Why do outplacement services matter to companies?

While outplacement services primarily benefit the employees who are transitioning out of a company, they also offer significant advantages to the companies themselves. Here are some key reasons why outplacement services are essential for companies:

1. Reduce the risk of litigation: Outplacement services can help companies avoid wrongful termination lawsuits by ensuring that laid-off employees receive proper support and resources.
2. Protect brand reputation: Offering outplacement services demonstrates a company’s commitment to its employees, even during difficult This can enhance the company’s reputation and attract top talent.
3. Improve employee morale and retention: Remaining employees may feel anxious or uncertain after a Outplacement services can help alleviate these concerns and show that the company cares about its employees’ well-being.
4. Minimize survivor anxiety and accelerate forward mobility: Outplacement services can help remaining employees cope with the emotional impact of layoffs and support them in taking on new responsibilities.
5. Enhance productivity: By providing support and resources to laid-off employees, outplacement services can help them find new jobs This can lead to increased productivity for the company as employees are less distracted by job searching.

What do outplacement services include?

Outplacement services can vary depending on the provider and the specific needs of the company and its employees. However, common services include:

• Career counseling: One-on-one guidance from experienced career coaches to help individuals assess their skills, interests, and career goals.
• Resume and cover letter writing assistance: Help with creating compelling resumes and cover letters that highlight an individual’s strengths and
• Job search strategies: Training on effective job search techniques, including networking, online job boards, and social media.
• Interview preparation: Practice interviews and feedback to help individuals build confidence and improve their interviewing skills.
• Salary negotiation: Guidance on how to research salaries and negotiate compensation packages.
• Personal branding: Help with creating a strong online presence and developing a personal brand that resonates with potential employers.
• Emotional support: Counseling and resources to help individuals cope with the emotional impact of job loss.

What does the evidence say?

A study conducted by The Harris Poll found that 80% of employees said that receiving career transition support would make them less likely to speak negatively about a previous employer.

• Most Americans expect career transition support from their former employers in the event of a layoff
  • A majority of Americans (85%) think most companies don’t provide enough help to employees when laying them off.
  • More than 4 in 5 Americans (83%) think outplacement services should be offered as part of a severance package to every employee who is laid off by their employer

• Outplacement benefits have a big impact on Americans’ opinions of employers
  • If an employer offered outplacement services to laid-off employees, 83% of Americans say it would improve their opinion of the company.
  • A majority of Americans (82%) say employers who offer outplacement services as part of a severance package care more about their employees than those who do not offer

• Outplacement can protect employer brand during workforce reductions
  • Four out of five Americans (80%) say receiving outplacement services would make them less likely to speak negatively about a former employer if they were to be laid off according to the Harvard CAPS Harris Poll.
• The Equal Employment Opportunity Commission (EEOC) reported over 61,000 discrimination charges in 2021, many related to layoffs.
• A study by the Center for Organizational Research found that legal action related to layoffs was reduced by 72% among companies that used outplacement services.
• According to Harvard Business Review, organizations that cut staff by more than 10% can see a 15% to 20% decline in

Outplacement services are a valuable investment for companies of all sizes. By providing support and resources to laid-off employees, companies can protect their reputation, improve employee morale, and ensure a smoother transition for everyone involved. Check our outplacement offerings to see if they are the right fit for your employees!