Benefits of outplacement: why is it important?

In recent weeks we have been reading more and more reports in the news about bankruptcies and (partial) reorganizations. Obviously a profound event for people and organizations. For this very reason, it is enormously important to (continue to) take good care of your (departing) employees.

Reducing the workforce is not an easy choice. Both departing employees and managers will undoubtedly experience emotional distress as they prepare for this new transition. To facilitate this process, the organization may decide to seek an outplacement service provider. But why is outplacement actually important? And what are the main benefits?

So why is outplacement counseling important?

Research indicates that four out of five employers offer outplacement services for employees who are leaving the company. Ranging from assistance in determining search profile, coaching and career advice to identifying job opportunities. This does show that many employers believe and experience that outplacement has a positive impact on their bottom line and company brand. But of course there are many other reasons as well.

We know that outplacement is the most important severance for both the employee and the organization. For employers, outplacement solutions, in addition to being good employers, offer a reduction in the organizational and legal costs that can arise upon termination. For the departing employees, this service allows them to financially bridge towards the new job and be helped quickly and successfully during the transition.

Let’s look at all the benefits and reasons in detail:

First, what is an outplacement service?

Outplacement is the support service provided by responsible organizations to help departing employees transition to new jobs and reorient themselves in the job market.

Typically, the best outplacement providers offer laid-off workers an up-to-date outplacement training process, as well as high-quality job search assistance and career coaching to ensure they are placed in their perfect job in the shortest possible time. Job search assistance normally includes preparing a resume, preparing for interviews and reviewing job postings.

Some surveys indicate that building the new organization is the main reason companies seek outplacement services, but what are other explanations? Employers may need an outplacement service if their company:

  • Must reduce
  • Will reorganize
  • Poor performance
  • Poorly performing employees has
  • Mergers and acquisitions planned
  • Operational costs must be reduced
  • Faced with uncertainty about the economic climate
  • The strategic direction must be changed
  • Want to offer their staff support for career change

The importance of outplacement services for employees

Now that you understand the reasons why an organization needs outside outplacement support, let’s look at why this service has grown in popularity and why it is considered important:

  1. Outplacement improves retention and productivity

Workforce reductions, layoffs and other types of employee layoffs typically have a negative effect on the morale and productivity of current employees. But if handled properly, the whole process can increase the dedication and motivation of the remaining employees.

Offering outplacement services to terminated employees is a way to show remaining employees that they are valued and that employers have a “conscience,” which can have a positive impact on their morale, commitment, retention and productivity.

  1. Outplacement reduces risk of legal action

Defending an illegal termination is expensive, time-consuming, diminishes the morale of the employees left behind, and can damage the company’s reputation and perception. Seeking outplacement services can help the company take appropriate action when some employees are laid off. Offering an outplacement package as part of a severance agreement can reduce the anxiety of laid-off employees, maintain healthy relationships in the office and thus reduce the risk of wrongful termination lawsuits.

  1. Outplacement protects your company brand

A company’s brand and image are everything these days. Outplacement reinforces a positive view of the company by staff and the community. Executive outplacement agencies promote an excellent corporate reputation, demonstrate your company’s social responsibility to current and former employees and demonstrate the company’s ability to promote the solutions modern professionals need, such as access to transfer options, network connections and job sites.

Moreover, maintaining an excellent relationship with affected employees not only preserves the company’s image, but also ensures that future contacts with them are and remain positive.

4. Outplacement can be a negotiable severance payment

Today, most companies use outplacement as a “bargaining chip” during an individual compensation negotiation. Outplacement packages offer laid-off workers a number of tangible tools that add value to their future.

5. Outplacement supports corporate values

Most companies have core values that show how valuable their workforce is. There is measurable data to support the link between value-driven organizations and long-term productivity. Offering outplacement counseling to employees shows that the company’s core values are not just out of the blue.

Why is outplacement important for employees?

Let’s face it, even employees of the best companies get fired. But when a company makes outplacement counseling available, it creates an engaging, employee-centered culture that makes employees feel safe, motivated and committed.

But when layoffs occur, the first and most important thing about outplacement agencies is to get laid-off employees back to work faster. Without such services that support career transition, an employee may take more than a year to find a new job. With outplacement services, they can find new employers in a significantly shorter period of time.

What services are typically offered by outplacement agencies?

Top outplacement agencies offer services and programs to meet the needs of both employees and companies. Most of these programs are divided into two types: group programs and individual programs.

Group programs are usually designed for large-scale reorganizations. Individual programs are offered tailored to employees and executive management. Either way, the right outplacement services offer the following key benefits:

  • It helps job seekers plan their job search
  • Coaching and networking advice is provided
  • It offers help with various tools
  • Information is provided about online services, job fairs and recruitment agencies
  • Financial advice is provided
  • Assistance is provided with (online) interviews
  • Employees are coached on topics of interest
  • Professional assistance is provided in preparing resumes and cover letters

The benefits of outplacement: the last word

The benefits of outplacement far outweigh the cost of implementing a quality program. Sometimes it is inevitable; companies face a difficult decision to lay off some of their employees. It is a harsh reality that no management team or staff member wants to endure.

However, employers have the benefits of outplacement services to ensure that the layoff has a soft landing. Employers can now choose to offer comprehensive support to former employees as part of their core value and social responsibility by seeking help from some of the well-known outplacement organizations in the Netherlands.


We are ready with customized solutions for you and your employees for any (career) situation. You can call us (085-4018200), email us ( and app us (Whatsapp Business on our homepage).

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