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Why businesses should understand the benefits of Outplacement

Why businesses should understand the benefits of Outplacement

Redundancy is difficult for everyone involved: Your staff, whose jobs are at risk – at different stages of their career and with their own individual skills; those who have to administer the process; and those who are staying but whose roles may change; and, of course, you as a business owner.   Everyone has a rightful stake and a valid perspective on the situation.  

If your business is considering redundancies or a restructure, or just making contingency plans, here’s why a good understanding of the benefits of Outplacement can help you and your stakeholders in the long term.  

What is Outplacement?

Outplacement services provide specific Information, Advice and Guidance (IAG) to help your staff gain a new job in a redundancy situation. It can include access to an expert career coach and/or access to a digital platform that provides ongoing resources to help your staff explore their options and get back into employment.  It won’t change the fact of redundancy, but it can make the process that bit easier for you and everyone else involved.  

Four Benefits of Outplacement that can help businesses considering redundancies: 

  1. Outplacement shows your employees that you care what happens next – helping protect your reputation  

    Outplacement services can help mitigate reputational harm that is often part of organisational downsizing.

    There is no legal obligation to provide an Outplacement service. However, your staff who are being made redundant will are able to see that your company’s duty of care to them has extended to practical support that helps them move on to their next opportunity.  

    Your paths may very well cross again in the future – and you may be remembered as the business that went the extra mile in difficult circumstances.  

  2. Outplacement can be tailored to suit your employees  

    Your employees may be stepping back into the world of job-hunting for the first time in decades. Some may be at the very start of their careers.  A good Outplacement service will see them linked up with a coach who understands where they are in their career journey, and will tailor their support accordingly. 

    Outplacement can support your employees in exploring their options before their leaving date. This will help them plan their future with hope and confidence.  

  3. Outplacement can help mitigate risk associated with employees leaving the business   

    There is no legal obligation for you, as an employer, to provide an Outplacement service or to guarantee employees a new job or training.  But by providing an Outplacement service, you are trying to increase the chances of your employees moving into a new role. This means that should an ex-employee make a claim, any potential compensation may be reduced.  

    Before offering Outplacement, it is important to be clear with your employees that this is not about you guaranteeing a new job or retraining them; but it is about helping improve their chances of a positive career outcome.    

  4. Outplacement can help engage and support your remaining employees 

    Your business’s relationship with your remaining employees is important to its future success.  Seeing the support that you give those exiting the business can help (re)build your company’s relationship with employees who remain.   

    Outplacement services can also help support those whose role may change, whether by taking on new responsibilities, by promotion, or becoming a manager for the first time. Outplacement services can help them build confidence for these new challenges through the help of a career coach or access a specialist online platform, with modules on skills development, leadership skills, and preparation for new responsibilities. 


While your business should always aim to act from the best of intentions, rather than fear of litigation, regardless of the risk, there is considerable pragmatic gain (and real potential financial gain) in understanding the benefits of Outplacement and making Outplacement support a part of your complete redundancy package.  

Discover our range of Outplacement products to help your business and your employees create a better future.

Find out more about Career Connect

Have a question?

Contact us with any questions, or if you’d like to arrange an online demo.

Neil McCaskill - Business manager