Outplacement – What is it and what are the advantages?

Outplacement – What is it and what are the advantages?

Outplacement can be a positive change

Outplacement is a term used to describe the provision of support services to employees facing redundancy or early retirement. Employees are made redundant for a number of reasons including organisation restructure, downsizing, or due a business closing down.

Who pays for outplacement and what’s included?

Organisations often fund outplacement services for employees who are being made redundant although some redundant employees who have not been offered outplacement services as part of their redundancy package choose to purchase outplacement services for themselves.

The level of assistance provided by an outplacement company will vary depending on the package negotiated by the organisation or the employee. Some outplacement companies deliver their services in groups, others on a one-to-one basis or a combination of group and one-to-one support.

The kinds of services offered by outplacement companies vary but might include:
  • Information about the labour market including how identify and access job opportunities
  • Job search advice and information including tapping in to the hidden job market and using social media effectively for job search
  • Creating an effective CV, cover letters and addressing selection criteria
  • Group sessions covering a range of topics such as making a successful transition, identifying transferable skills, how to write a CV, job search strategies etc.
  • Career counselling and coaching including exploration of options, vocational assessment and career action planning
What are the advantages of outplacement for employees?
  • Provides personal and career support during the transition period
  • Enables an employee to transition to a new role quickly
  • Provides a positive environment for change out of what is often viewed as a negative event
  • Provides access to professional outplacement services at no cost (when funded by the employer)
What are the advantages of outplacement for employers?
  • Demonstrates an organisation’s commitment to employee welfare and shows a high level of ethics
  • Remaining and future employees know they will be supported in the event of redundancy in the future. This has been found to enhance morale and increase productivity whilst encouraging loyalty and staff retention.
  • Takes undue pressure off the organisation’s HR team who gain peace of mind knowing redundant employees are being managed by an outplacement specialist
  • Employees are less likely to seek legal action against their employer as they feel supported and valued.
How long does outplacement last for?

The length of assistance provided depends on the outplacement company and the package negotiated. It’s typical for services to be time limited for say; 3, 6 or 12 months, others might be on a ‘as long as it takes’ basis. Ideally, an employee would be expected to transition into a new role early on but many outplacement providers will assist them until they have achieved their goals.

CareerWorx Outplacement

CareerWorx has been providing outplacement services since 2004. In that time we have assisted employees from a range of industries and various levels from front-line and operational staff to middle and upper management.

We provide tailored, one-to-one support aimed at helping redundant employees into exciting new roles that align with their own goals. Rather than routinely putting employees through group programmes we prefer the one-to-one approach with a focus on identifying and achieving an individual’s goals.

Our outplacement service is provided by highly qualified, experienced and accredited career development professionals in pleasant, comfortable surroundings in modern offices in London, Guildford and Portsmouth. We can also provide our services remotely via Skype or telephone across the UK and around the world


Lisa LaRue is a registered Career Coach at CareerWorx with more than 20 years’ experience helping people plan, manage and find happiness in their careers.

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