outplacement costs

Outplacement is something that all responsible company owners should look into. When you hire an outplacement agency you are doing everything possible to ensure the well-being of your employees, even when they no longer work for you.

The point of outplacement is to provide the tools and resources necessary for your terminated employees to find another job and get back to work without a hitch. Unfortunately there is one major deterrent in investing in this type of service and that is the high outplacement costs in 2019.

Once you do a bit of research you’ll see that some of the cheaper outplacement plans can set you back about $1000 per employee you wish to cover. You’re probably wondering if this is worth it; here’s what you need to know about outplacement so you can decide on its worth within your company.

What does an outplacement agency actually do?

There are tons of outplacement agencies and packages to choose from and they all offer different coverage plans. In general every plan offers resume building, cover letter writing, interview coaching, and professional profile updates. Some services are better than others and the more you pay the more coverage your employees will receive.

The most advanced packages within the top-tier outplacement companies offer even more. These are a few services you can expect for your employees from well-known agencies:

  • Complete resume writing and supporting documents
  • Complimentary cover letter and thank you letter
  • Modern-day job search assistance
  • One-on-one interview coaching session & mock interview
  • LinkedIn profile optimization
  • Digital branding analysis
  • Career counseling and career transition support

How long is each employee supported after termination?

The period of coverage depends on the agency and package you choose. Typically outplacement services provide at least 30 days of coverage. The best ones provide 45 days of coverage even within their most basic plans. When you invest in advanced and elite plans your employees could receive as much as 4 months of support from the date of termination.

Are the more costly packages really that much better?

In general the answer to this is yes. Just like with any service, the more you spend the more coverage you will receive. Take health care for instance; cheaper health insurance plans provide much less coverage than the more costly ones. It is up to you as a leader to determine whether or not more coverage is necessary.

How can you tell if an outplacement agency will actually follow through?

You can’t know for sure that the outplacement professionals will be successful in finding each and every one of your terminated employees a job. You can only do your research and hope for the best. Always look for companies that have a high rating and provide success stories from their clients.

You should be able to get a good idea from reviews about how successful the outplacement agency will be in providing the necessary support. If possible try to reach out to other companies that have used an outplacement service to learn about their experience.