What Is Outplacement? A Guide for Employers

Outplacement is the support an employer arranges for employees who are leaving the organization, usually as part of a reorganization, restructuring or redundancy. It is usually delivered by an external provider, so that people have independent help, and someone outside the company to talk to, while they look for their next role.

Why do employers offer outplacement?

Employers offer outplacement for several reasons. The most direct one is that people losing their jobs need help, and few employers want them to face that alone.

Support for the people leaving

Losing a job is difficult, and most people have little notice to plan what comes next. Outplacement means practical help, and someone to talk to, are already in place when they are needed.

A clearer process for everyone

Agreeing the support in advance means everyone affected is offered the same help, rather than it depending on who their manager is.

The people who stay

Redundancies affect the whole team, not only those who leave. Seeing colleagues treated decently matters to the people who remain.

Consistency with the organization’s values

Many employers see supporting people through a difficult change as part of how they want to operate, not only as part of how they are seen.

What does outplacement include?

Scope varies by provider and by what the employer agrees. Most programs cover some combination of the following.

One-to-one career coaching

Time with a coach to think through the options and decide what to pursue next.

Wellbeing support

Losing a job affects more than income. Many programs include support for that, not only for the job search.

CV, interview and job search preparation

Practical help with applications, interviews and approaching the job market.

Access to job opportunities

Where a provider has live recruitment activity, it may be able to introduce people to relevant openings.

Outplacement is not severance pay

The two are often arranged at the same time but they are different things. Severance is money paid when employment ends. Outplacement is a support service that helps someone find their next role.

How to choose an outplacement firm

Agree the scope and duration up front

Ask what is included, how long support lasts, and whether it is delivered one-to-one or in groups. Programs should be designed around your timeline and your people.

Ask whether the provider is close to the hiring market

A provider with active recruitment work sees hiring demand every day. A provider without recruitment activity may have less direct visibility of current demand.

How KOS Solutions can help

KOS Solutions provides outplacement and workforce transition support for employers managing organizational change, covering career guidance, emotional support and job search assistance for the people leaving.

See our integrated HR solutions for what a program includes and how it is arranged, or email kossolutions@kos-intl.com for a private discussion.