What is Outplacement?

Outplacement services have become a rapidly growing and almost required part of every company. An outplacement service helps a terminated employee transition into a new job by guiding them through the job search. Employers typically have this in play for when they are forced to make cuts.

There are many different types of outplacement services with different options. Some are as cheap as $750/employee but others range into the thousands.

If a company has an outplacement service, it should be mentioned in the severance package. So what’s that?

A severance package is an agreement made at the time of termination of an employee. It determines how much and for how long an employer is willing to compensate the terminated employee past their last paycheck. At this time, employers also offer any outplacement service they may have, though it is not required.

Benefits for the Employers:

Many may wonder what the point of voluntarily paying for an outplacement service is. While it is a cost to the company, providing terminated or laid-off employees with this resource increases loyalty and satisfaction with those employees. Hopefully, they will not be so quick to view the company negatively for their actions if they are provided with help and resources. It will show employees that the company does care and does not want anyone unemployed, sometimes decisions just have to be made for the company.

This will in turn also improve the company’s image. Seeing that a company has laid off a decent amount of employees but taken care of them after the fact looks far more appealing than seeing that a company has laid off dozens of employees and do nothing about it.

Benefits for Employees:

As an employee, it is very comforting to know that you are working for a company that has protection. If something happens, which sometimes thing happens, you won’t be left with nothing.

Using an outplacement service after being laid-off ensures a new job much sooner than without using one. Having references at hand and a critiqued resume makes all the difference. The company may also help arrange interviews and advise on which opportunities are best.

Being laid-off or terminated can also trigger many emotions. Companies with outplacement services typically also have resources available to help with anxiety, stress, and other feelings during this time.


At one point or another, every company is forced to downsize and lay off or terminate employees. This is rough on both ends, but outplacement services are here to help!