What Are Outplacement Services? Complete Guide for Laid-Off Employees

If you've been laid off and your employer mentioned "outplacement services" as part of your severance package, you may be wondering what exactly that means and whether it's worth anything. This comprehensive guide explains everything you need to know about outplacement services and how to maximize their value.

What Are Outplacement Services?

Outplacement services are career transition support programs that companies provide to employees who are being laid off. The employer pays for these services to help departing employees find new jobs more quickly.

Outplacement Services Definition

Outplacement is professional career assistance provided by a third-party firm, paid for by your former employer, designed to help you transition to a new job. It typically includes resume writing, job search coaching, interview preparation, and access to job leads.

Why Do Companies Offer Outplacement?

Companies provide outplacement services for several reasons:

• Reduce legal risk: Helping employees find jobs can reduce wrongful termination claims
• Protect employer brand: Laid-off employees who land quickly speak more positively about the company
• Maintain morale: Remaining employees see the company treating departing colleagues well
• Unemployment costs: In some states, faster re-employment reduces employer unemployment insurance costs

What's Included in Outplacement Services?

Common Outplacement Services Examples

Levels of Outplacement

Basic outplacement (1-3 months):

• Online resources and tools
• Group workshops
• Limited individual coaching
• Resume review

Standard outplacement (3-6 months):

• Individual career coaching
• Professional resume writing
• Interview coaching
• Networking events

Executive outplacement (6-12 months):

• Dedicated senior coach
• Comprehensive personal branding
• Executive networking
• Board placement assistance
• Extended support until placed

Top Outplacement Service Providers

Major Outplacement Firms

Lee Hecht Harrison (LHH)

• One of the largest global providers
• Comprehensive services at all levels
• Strong technology platform

Right Management

• Part of ManpowerGroup
• Extensive employer relationships
• Global reach

Challenger, Gray & Christmas

• Well-known for executive outplacement
• Strong media presence
• Quality coaching

RiseSmart

• Technology-forward approach
• Owned by Randstad
• Modern platform

Careerminds

• Virtual-first model
• Competitive pricing
• Growing provider

Boutique Providers

Many smaller firms specialize in:

• Specific industries
• Executive-only placement
• Local markets
• Particular career levels

How to Get the Most from Outplacement

Start Immediately

Don't wait to engage with outplacement services:

• Services typically have time limits
• Momentum matters in job searching
• Early coaching sets you up for success
• Resources may have waitlists

Be an Active Participant

Do:

• Complete all assessments and exercises
• Show up to scheduled sessions prepared
• Do the homework assigned
• Ask questions and advocate for yourself
• Use all available resources

Don't:

• Treat it as a checkbox exercise
• Skip sessions or show up unprepared
• Ignore coach recommendations
• Assume they'll find you a job

Maximize One-on-One Time

Individual coaching is the most valuable component:

• Come with specific questions
• Share what's working and what isn't
• Ask for honest feedback
• Request additional sessions if available

Use All the Resources

Many people only use 50% of what's available:

• Attend workshops even if topics seem basic
• Use the job boards and lead services
• Take advantage of office space if offered
• Join networking events

Is Outplacement Worth It?

Value Depends on Your Situation

High value if you:

• Haven't job searched in years
• Need resume help
• Lack confidence in interviewing
• Have a weak professional network
• Are changing careers or industries
• Benefit from structure and accountability

Lower value if you:

• Recently job searched successfully
• Have strong resume and interviewing skills
• Have extensive active network
• Are self-motivated and disciplined
• Have a specialized niche with clear opportunities

Studies on Outplacement Effectiveness

Research shows outplacement recipients:

• Find jobs 30-60% faster on average
• Accept roles at or above previous salary more often
• Report higher job satisfaction in new roles
• Experience less career transition stress

Outplacement vs. Doing It Yourself

What Outplacement Provides

When to Supplement Outplacement

Even with outplacement, consider:

• Industry-specific job boards
• Personal networking
• Direct company applications
• Recruiters in your field

Negotiating for Better Outplacement

If Offered Basic Package

You can often negotiate for:

• Longer duration (3 months → 6 months)
• Higher service level
• Specific provider of your choice
• Cash equivalent if you don't need it

Asking for Outplacement

If not offered, you can request it:

• "I'd like outplacement services as part of my separation package"
• "Would the company consider providing career transition support?"
• Often costs employer $1,000-5,000, which may be acceptable

Cash Alternative

Some companies offer:

• Cash value instead of services
• Typically 50-75% of service cost
• Allows you to hire your own coach
• Consider which is more valuable for your situation

What Outplacement Can't Do

Realistic Expectations

Outplacement services do not:

• Find you a job (you still have to do the work)
• Guarantee placement
• Replace your own networking
• Work miracles on a weak background
• Substitute for effort and persistence

Your Responsibility

You still need to:

• Apply to jobs consistently
• Network actively
• Follow up on opportunities
• Prepare thoroughly for interviews
• Negotiate your own offers

Making the Decision

Questions to Ask About Outplacement

Before accepting or negotiating:

1. How long do services last?
2. What level of service is being offered?
3. Is coaching one-on-one or group?
4. How many coaching hours are included?
5. What's the experience of assigned coaches?
6. Is there a satisfaction guarantee?
7. Can I extend if needed?

Red Flags

Watch for:

• Very limited time (less than 3 months)
• Group-only sessions
• Minimal individual coaching
• Outdated technology or resources
• Poor reviews from past users

Outplacement for Different Situations

Executive Outplacement

For VP+ level, expect:

• Senior, experienced coaches
• 6-12 month programs
• Personal branding work
• Board position assistance
• Executive networking focus

Mid-Career Outplacement

For managers and senior individual contributors:

• 3-6 month typical duration
• Balance of group and individual
• Focus on career positioning
• Interview and negotiation support

Entry/Early Career

For junior employees:

• Shorter programs (1-3 months)
• More group workshops
• Resume basics
• Job search fundamentals

Key Takeaways

1. Outplacement is employer-paid career help provided after layoffs
2. Services typically include resume help, coaching, interview prep, and job leads
3. Start immediately—don't waste the time limit
4. Be an active participant—you get out what you put in
5. Individual coaching is most valuable—maximize that time
6. Use all resources offered—most people underutilize services
7. It won't find you a job—but it can accelerate your search
8. You can negotiate for better outplacement or cash equivalent
9. Duration and level matter—ask about specifics before accepting
10. Supplement with your own efforts—outplacement is one tool, not the only one

Related Resources

• First 24 Hours After Layoff
• Severance Negotiation Tips
• Networking When Unemployed
• How to Explain a Layoff in Interviews