An Employer’s Guide To Outplacement Services

By Athina Iliadis , Senior HR Consultant

Effective outplacement assistance services

Offering outplacement services has become standard today. It’s estimated that 52% of Canadian employers offer departing employees outplacement services. This is up from 31% in 2018.

Does your company offer it?

In my 25 years of experience in HR outsourcing, I’ve stressed to employers that how you treat your people extends beyond hiring, onboarding, and engaging existing employees. It also matters how you treat them as they exit the organization. It may have been years since terminated or laid-off employees have been in the market for a new job. So let them leave with dignity and respect.

Laid-off employees face a changed job market and may require entirely new skills to stay competitive. However, you can facilitate their transition by including outplacement services in their severance package. Offering outplacement can do wonders for your employer brand.

Below, we’ll discuss 7 topics:

What are Outplacement Services?
How the expectations of outplacement services have changed over time
What’s the process of outplacement?
How do you choose an outplacement firm?
What is included in outplacement HR services?
Outplacement services cost
Are outplacement services worth it?

What are outplacement services?

Terminations, career transitions, and layoffs happen. When these situations happen, exiting employees can benefit from assistance in taking the next step in their careers.

Outplacement assistance services are career programs designed for terminated and laid-off employees. These services help with résumé writing, interview preparation, networking, job board navigation, and other essential job search strategies. Outplacement can also help build up their confidence as they move back into the workforce. Think of it as the opposite of onboarding.

Outplacement services can be referred to by several other names:

job transition
career outplacement
career redirection
career repositioning
employment transition

What does outplacement mean today? How it's changed over time.

The expectations of HR services have changed quite a bit over the past few years. Traditional outplacement services are no longer as effective as in the past. People are no longer just looking to find the same job they had. They are taking a job loss as an opportunity to switch industries, change roles and find the kind of work they want to do, increasing the importance of transferable skills. Career transitions are more common nowadays as people are looking to reinvent themselves and follow a new career path.

In the past, outplacement focused on softer skills and was more about résumé writing. Services were typically geared only toward executives.

Today, successful outplacement is about offering a complete assistance package that addresses the existing realities of work. It helps people create a bridge to their ideal next step. You receive emotional support, get access to mock interviews and other resources - and you can do it remotely.

What's the process of outplacement?

An example of an outplacement services process

An example of an outplacement process

Outplacement is a service offered by employers to help employees who are being laid off or otherwise leaving the company find new jobs. Here's a typical 9-step outplacement process:

Introduction: The employer introduces the HR consulting firm to the affected employees and explains the services offered
Meetings: Employees meet with outplacement specialists to discuss their career goals, skills, and experience
Evaluation: This may involve assessments to identify strengths, weaknesses, and interests
Resume and Cover Letter Help: Specialists will help craft or edit résumés and cover letters to target specific positions
Job Search Strategies: Guidance on finding job openings, networking, and navigating online job boards.
Mock Interviews: Employees can practice interviewing skills through role-playing with outplacement specialists
Interview Coaching: Specialists offer feedback and advice on interview techniques and answering common questions.
Salary Negotiation Advice: Receive advice on salary negotiation and benefits.
Career Counseling: Some programs provide ongoing career counseling and support throughout the job search.

Keep in mind that the specific HR services offered may vary depending on the outplacement firm, employees' needs and the employer's contract.

How do I choose an outplacement firm? 4 key things to look for (& 3 others)

The success of your outplacement program is only as good as the HR outsourcing firm you hire to execute it for you. Careful consideration should go into selecting a firm that fits with your company. Here are the main considerations for choosing an outplacement firm:

Expertise. Look for an HR outsourcing firm with experience in your industry and with roles similar to yours. Their knowledge of the specific hiring landscape will be valuable. While not a guarantee, inquire about the firm's success rates in placing individuals in new jobs. Also check to see whether it’s actually experienced HR people doing it, not simply management consultants or a call centre. This is a very crucial and unforgettable moment in the laid off or terminated employee’s life and it’s important that outplacement is done right. Our AugmentHR consultants are fully trained in outplacement services and specialize in the transition process including helping a terminated employee find alternate employment.
Services Offered. Does the HR consulting firm offer a thorough needs assessment to understand your career goals and tailor their support? Ensure the firm provides guidance on crafting résumés and cover letters and offers mock interviews for interview practice. Mock interviews are super important for those who haven’t been on an interview for years. See if they offer salary negotiation advice, career counseling, or access to online resources like job boards or skills assessments.
Cost and Value. Some firms charge a flat fee, while others have a tiered structure based on services offered. Consider the value proposition of your needs.
Reputation and Reviews. Research the firm's reputation within the outplacement industry and any relevant certifications they hold. Look for online reviews or testimonials from past clients to gauge their experience with the firm.

3 Additional Considerations

Account Management:
Make sure a dedicated HR outsourcing specialist will be assigned to work with you throughout the process. Be wary of call centre-style support - it doesn’t work for this type of service Building rapport with one specific person is key.
Technology and Resources:
Does the firm offer online resources or tools like interview guides or job search platforms?
Communication Style:
Choose an HR consulting firm with a communication style that suits you, whether it's frequent check-ins or progress reports at specific intervals.

What's included in outplacement services?

Most outplacement services offer a variety of processes, tools, resources, and materials to help outgoing employees. For instance, as an HR consulting firm with years of experience in outplacement we offer the following outplacement services:

Career counseling.
Résumé preparation.
Networking skills.
Search firm connections.
Job search skills.
Interview training.
Coach employees on particular professional topics of interest.
Employment contract assistance.
Integration – Setting up for Success.

Note: You may not need all these services. As a firm that prides itself in cost-effective, flexible services we tailor the outplacement package to your needs.

How much do outplacement services cost?

Outplacement services can vary significantly in cost, depending on several factors. Rates can start at as low as $1,000 per employee and up to $10,000 or more for executive outplacement. Here are the top factors affecting the cost of outplacement services:

Are They HR Professionals?:
The lower end of the cost range may simply be consultants and not trained HR professionals with experience in the hiring process.
Number of Employees:
Firms often offer volume discounts for employers laying off a large number of employees.
Scope of Services:
Basic packages with résumé and cover letter help will be cheaper than comprehensive programs with interview coaching, salary negotiation advice, and career counseling.
Delivery Method:
Online or group programs are generally less expensive than personalized one-on-one coaching.
Executive Outplacement:
Specialized HR services for executives transitioning careers come at a premium due to the extended program length and tailored support.

Are outplacement services worth it?

Many companies weigh the merits of offering outplacement assistance to employees, and for good reason. Outplacement services offer several advantages for employers beyond simply helping laid-off employees. Here's 6 reasons why high-performing companies find them worthwhile:

Reputation Management: Offering outplacement demonstrates that a company cares about its employees, even during difficult times like layoffs. This can help maintain a positive employer brand and attract top talent in the future.
Reduced Risk of Lawsuits: Disgruntled employees following a layoff might be more likely to sue for wrongful termination if they feel unsupported. Outplacement can help mitigate this risk by providing resources for a smooth transition. Hiring an outplacement firm can ensure legal compliance during the termination process.
Improved Employee Morale: Layoffs can be stressful for remaining employees. Knowing the company is taking care of departing colleagues can boost morale and productivity among those who stay.
Lower Unemployment Costs: When former employees find new jobs faster, they collect unemployment benefits for a shorter period, potentially saving the company money.
Stronger Employer-Employee Relationships: Even during layoffs, outplacement fosters a sense of goodwill and maintains a positive relationship with departing employees. This can be valuable for potential future collaborations or recommendations.
Outplacement can streamline the layoff process: It provides a structured program for affected employees.

A final word on outplacement services

Outplacement services can be a strategic investment for employers. By prioritizing the well-being of departing employees, companies can protect their reputations, manage legal risks, and maintain a positive work environment. Being an employer of choice is all about how you treat your people - whether they’re coming in or leaving your organization.

Athina Iliadis is a senior HR consultant with Augment HR, a Toronto-based HR consulting firm. Athina has over 25 years of experience as an HR professional and through her career has amassed a wealth of HR best practices in areas as diverse as legal compliance, employee retention, performance management and more. Her empathy and work ethic (along with her experience) make her a much appreciated addition to her client’s organizations.

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