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You just found out your company needs to cut staff. Maybe orders have dried up, a contract fell through, or a restructuring made certain roles redundant. Whatever the reason, you’re now staring at a list of names and trying to figure out how to handle this the right way.
If you’ve started Googling “what is outplacement,” you’re already ahead of most employers who face this situation for the first time. Most people don’t even know the term exists until they’re in the middle of planning a layoff.
This guide covers what outplacement services are, what they cost, how they protect your business legally and reputationally, and how to evaluate providers. It’s written from the perspective of someone who has spent nearly two decades on both sides of the hiring table, first as an executive recruiter and now running a career services firm that provides outplacement to Michigan employers of all sizes.
Joel Marotti is a Senior Managing Partner at Vertical Media Solutions, a career services firm based in Grand Rapids, Michigan that serves employers and job seekers across the Great Lakes region. The firm works with hundreds of clients annually with a 4.9-star rating from over 978 reviews, and its team includes certified professional resume writers and career coaches with backgrounds in executive recruiting.
What Are Outplacement Services?
Outplacement is career transition support that an employer pays for on behalf of employees who are being laid off, terminated, or displaced due to restructuring. The goal is simple: help those employees land on their feet faster.
A solid outplacement program typically includes some or all of the following:
- A one-on-one intake interview to understand the employee’s background, skills, and career goals
- A skills and aptitude assessment to identify strengths and potential career directions
- A professionally written resume, tailored for the roles they’ll be pursuing
- A cover letter customized to their target positions
- LinkedIn profile optimization so they show up in recruiter searches
- Interview coaching that goes beyond rehearsed answers and teaches employees how to have a real conversation with a hiring manager
- Job search training, including how to use job boards effectively, how to network, and how to target the right opportunities
- Career coaching to help employees think through what they actually want to do next, not just what they’ve always done
The depth of these services varies depending on the provider and the package the employer selects. Some firms offer a quick resume review and call it outplacement. Others provide months of hands-on support with a dedicated career coach.
That difference matters, and we’ll get into how to evaluate providers later in this guide.
What Outplacement Does Not Include
A few things worth clarifying upfront, because these come up often.
Outplacement services do not guarantee job placement. No reputable provider will promise that every employee will land a specific job. What they guarantee is that they’ll do everything possible to prepare each person for a successful job search.
Outplacement cannot force employees to participate. You can encourage it, you can make it part of the severance conversation, but ultimately each employee decides whether to take advantage of the services.
Outplacement does not include job training or retraining. If employees need new certifications or technical skills to transition into a different field, that falls on the employer or educational institutions, not the outplacement provider.
Why Employers Offer Outplacement Services
Let’s set aside the “it’s the right thing to do” argument for a moment. It is, but that alone doesn’t get a line item approved. Here are the business reasons.
It Protects Your Reputation
A laid-off employee with no support and no plan is a reputation risk. They’re posting on LinkedIn. They’re leaving Glassdoor reviews. They’re talking to friends and former coworkers. In smaller markets like Grand Rapids, Lansing, or Ann Arbor, word travels fast.
A LinkedIn survey found that 61 percent of workers under 40 seriously consider a company’s overall reputation when deciding whether to accept a job offer. One poorly handled layoff can make it significantly harder to recruit the people you need six months from now.
When employees leave with a professional resume in hand, a career coach in their corner, and a clear plan forward, the conversation changes. They may not love that they were let go, but they’re far less likely to torch your brand online when they feel like their employer did right by them.
This applies at every level, but it’s especially true with executives. Senior leaders who are let go will almost certainly end up working for competitors or networking with the same people your company networks with, including potential clients. How they talk about your organization after they leave matters.
It Reduces Your Legal Exposure
Lawsuits after layoffs are common. The most frequent claims involve discrimination based on race, gender, age, or disability.
Four federal laws come into play during any workforce reduction:
Title VII of the Civil Rights Act of 1964 protects employees from being selected for layoff based on race, color, religion, sex, or national origin.
The Americans with Disabilities Act (ADA) protects employees with disabilities from discriminatory layoff practices.
The Age Discrimination in Employment Act (ADEA) protects workers over 40 from being targeted in layoffs because of their age.
The Worker Adjustment and Retraining Notification Act (WARN) requires employers with 100 or more employees to provide 60 days’ notice before plant closings or mass layoffs.
Outplacement doesn’t make you immune to legal claims, but it demonstrates good faith. Employees who feel supported and taken care of are significantly less likely to pursue litigation, especially the kind of lawsuit that’s driven by anger rather than a legitimate grievance. A well-structured outplacement program, paired with proper severance and release agreements, reduces your exposure on multiple fronts.
It Lowers Your Unemployment Insurance Costs
This is one of the most concrete financial benefits, and it’s one that a lot of employers overlook.
In Michigan, your unemployment tax rate is based on your experience factor, which is essentially how many claims have been filed against your account relative to your payroll. The more claims, and the longer former employees collect unemployment, the higher your rate.
For businesses less than two years old, the default rate is 2.7%. Construction companies can pay anywhere from 6.8% to 8.1% due to the seasonal nature of the industry.
Here’s where outplacement pays for itself: in Michigan, the average job search takes roughly 18 weeks. With quality outplacement support, that timeline can shrink by six weeks or more. Fewer weeks of unemployment per former employee means fewer claims, which means a lower tax rate. Multiply that across a dozen or more displaced workers and the savings are real.
It Keeps Your Remaining Team Intact
Layoffs don’t just affect the people who lose their jobs. The employees who stay often experience what’s sometimes called “survivor syndrome.” They’re anxious, distracted, and wondering if they’re next. Some start quietly job searching on their own.
When remaining employees see that their laid-off colleagues were treated well and given real career support, it sends a clear signal: this company takes care of its people, even during hard times. That reassurance is worth more than any all-hands meeting or internal memo.
Research backs this up. Companies that provide formal outplacement services see measurably higher engagement scores among remaining employees compared to companies that don’t.
If you’re facing a layoff and want to talk through your options, we offer a free outplacement consultation. No pressure, no pitch. Just a conversation about what your employees need and what a program might look like.
What Outplacement Services Cost
This is one of the first questions every employer asks, and the answer depends on several factors.
The biggest variables are the number of employees being placed, the level of service (entry-level vs. management vs. executive), and the duration of support. A basic package for a handful of hourly employees will cost significantly less than a six-month executive program with dedicated coaching.
Most outplacement firms price their services per employee or per package tier. Some offer flat rates for group programs. A few charge by the hour, though that’s less common.
As a general rule, expect to pay more for programs that include one-on-one career coaching, custom resume writing by a certified professional, and extended support. These programs also tend to produce better outcomes, which means faster reemployment, fewer unemployment claims, and less reputational risk.
The cheapest option isn’t always the best value. A low-cost outplacement program that provides a generic resume template and a link to an online job board isn’t going to move the needle for your employees or your business. If you’re going to invest in outplacement, invest in something your employees will actually use and benefit from.
For specific pricing information, you can view our outplacement pricing page or reach out directly for a custom quote based on your situation.
Outplacement for Executives vs. the General Workforce
Not all outplacement looks the same, and it shouldn’t. The needs of a displaced VP are very different from those of a displaced warehouse supervisor.
Executive-level employees tend to have longer job searches because there are simply fewer roles at that level. They’re not looking for “a job.” They’re looking for the right role at the right company with the right compensation and the right culture. That takes time.
Executives also need a different kind of support. Rather than a basic resume rewrite, they need help with personal branding, making sure their LinkedIn profile, resume, and professional reputation all tell a consistent, compelling story. Many also benefit from coaching on networking strategy, since most executive positions are filled through relationships rather than job boards.
From the employer’s perspective, there’s a financial argument for investing more in executive outplacement. Senior employees typically have higher severance packages and more expensive benefits. The longer they’re unemployed, the more the employer pays in continued health insurance and other negotiated benefits. Getting them placed faster saves real money.
How the Outplacement Process Works
If you’ve never contracted outplacement before, here’s what the process generally looks like from the employer side and the employee side.
For the Employer
You’ll start by having a conversation with the outplacement provider about the scope of your layoff, including how many employees are affected, what levels they’re at, and what timeline you’re working with. The provider will recommend a package or build a custom program based on your needs and budget.
Ideally, you want outplacement services arranged before the layoff notifications happen. That way, you can include outplacement details in the notification conversation itself, which immediately softens the blow and gives the employee something constructive to focus on.
For the Employee
The employee’s experience typically follows this sequence:
- An intake interview with a career coach to discuss work history, education, skills, and goals
- A skills and aptitude assessment to identify strengths and potential career paths
- Career coaching sessions to define the job search direction
- Professional resume and cover letter writing
- LinkedIn profile creation or optimization
- Job search training, including how to use job boards, networking strategies, and targeting the right opportunities
- Interview coaching focused on how to answer tough questions and how to evaluate whether a job is the right fit
- Ongoing support for a defined period (usually 3 to 12 months depending on the package)
The key thing to communicate to your employees is that outplacement is a tool, not a magic wand. The career coach and resume writer do the heavy lifting on preparation, but the employee still has to put in the work to find and land the right job.
Employees who fully engage with the process, attending all appointments, being open about their goals, and actively applying what they learn, consistently find new positions faster than those who treat outplacement as a box to check.
How to Choose the Right Outplacement Provider
Not all outplacement firms are created equal. Here’s what to look for and what to ask.
Look for Real Career Expertise
The people doing the actual work should be certified professional resume writers and experienced career coaches, not generalists reading from a script. Ask about the team’s backgrounds. Do they have recruiting or hiring experience? Do they understand your industry? Can they speak credibly to your employees about what hiring managers are actually looking for?
Ask About Customization
Cookie-cutter outplacement is worse than no outplacement at all. Your displaced machinist and your displaced marketing director need completely different approaches. The provider should be able to explain how they tailor their services to different employee levels and industries.
Make Sure They Understand ATS and Modern Hiring
The resume is the single most important deliverable in any outplacement program, and today’s resumes have to do more than look good on paper. Most mid-to-large employers run incoming resumes through an Applicant Tracking System before a human ever sees them. If the outplacement provider’s writers don’t understand how ATS software parses, scores, and filters resumes, your employees are going to lose interviews before they even get started.
Ask the provider how they approach ATS optimization. A qualified team will talk about formatting that passes ATS parsing, keyword alignment with job descriptions, and how they structure content to rank well in applicant pools. If they can’t speak to that with specifics, that’s a red flag. The goal is to give your displaced employees every possible advantage in a competitive job market, and that starts with a resume that actually gets seen by the hiring manager.
Check Reviews and References
Look for reviews from actual job seekers who used the firm’s services, not just employer testimonials. A firm that consistently helps people land jobs will have the client reviews to prove it. For context, our firm has maintained a 4.9-star rating across over 978 client reviews, the majority from individual job seekers who used our resume writing and career coaching services.
Consider Local Market Knowledge
If your workforce is concentrated in a specific region, a provider with local market knowledge has an advantage. They know which companies are hiring, which industries are growing, and which recruiters are active in the area.
For Michigan employers, we’ve worked with companies across Grand Rapids, Lansing, and Ann Arbor for nearly two decades and maintain active relationships with local recruiters and hiring managers. You can read about real outcomes in our Grand Rapids outplacement case study and our Lansing RIF transition case study.
Watch for Red Flags
Be cautious of providers who guarantee placement rates, rely heavily on AI-generated content, or try to upsell you on technology platforms instead of human support. The best outplacement is personal, not automated.
Common Misconceptions About Outplacement
A lot of the hesitation around outplacement comes from misunderstandings about what it is and who it’s for. Here are the ones we hear most often.
“It’s only for big companies.” Not true. Outplacement works for organizations of any size, from a two-person shop letting someone go to a manufacturer displacing 200 workers. Smaller firms can often find flexible pricing that fits their budget.
“It’s only useful during mass layoffs.” Also not true. In fact, employees who are let go individually often experience stronger feelings of isolation and uncertainty than those displaced in a group. One-on-one outplacement can be especially valuable in those situations.
“Only entry-level employees need it.” Every level benefits differently. Entry-level employees need help with basic job search skills and resume writing. Mid-level professionals need help repositioning themselves for advancement. Executives need branding, networking, and coaching. The provider should offer the right level of service for each group.
“If someone used outplacement before, they don’t need it again.” The job market changes. What worked five years ago may not work today. A refreshed resume, updated LinkedIn profile, and current job search coaching are just as valuable the second time around.
“Outplacement is just outbound recruiting.” It’s not. Outplacement is about equipping the employee for a successful job search, not doing the searching for them. The employee still drives the process. The outplacement provider gives them the tools and support to do it effectively.
Planning a Workforce Reduction
If you’re at the stage where you know layoffs are coming, here are the practical steps you should be thinking about. This is not legal advice, and you should absolutely involve legal counsel early in the process, but it gives you a framework.
Get Legal Counsel Involved Early
This cannot be overstated. Employment law is full of traps for well-meaning employers. The selection criteria you use for deciding who gets laid off, the language in your severance agreements, and how you communicate the decision all carry legal risk. A labor attorney should be at the table from day one, not called in after a problem surfaces.
Build an Objective Selection Process
Choosing who gets laid off based on gut feeling or personal relationships is a fast path to a discrimination lawsuit. Your selection criteria should be documented, objective, and directly tied to measurable job performance. If you don’t already have clear performance metrics and regular evaluations in place, you’ll need to develop defensible criteria before making any decisions.
Understand Your WARN Act Obligations
If your company has 100 or more employees and you’re planning a plant closing or mass layoff (50 or more employees in a 30-day period), WARN requires 60 days of advance notice. Failure to comply can result in back pay liability and civil penalties.
Even if WARN doesn’t apply to your situation, early and transparent communication with your workforce is always the better approach.
Structure Your Severance and Release Agreements Carefully
Severance pay isn’t always legally required, but it’s almost always a good idea. It softens the financial impact for displaced employees and demonstrates goodwill.
Release agreements, where employees waive their right to file claims against the employer, need to be handled with extra care. They must comply with the ADEA, be written in plain language, and provide adequate consideration. Get your attorney involved.
The most effective severance packages combine financial support with outplacement services. Giving someone a check keeps them afloat for a few months. Giving them a check plus professional career support helps them land a job, which is what they actually need.
Communicate Clearly and Honestly
Once the plan is in place, the announcement should come from senior leadership. Be direct about why the reduction is happening, when it will take place, and what support is being offered to affected employees. Train the managers who will be delivering individual notifications so they can do it with clarity and empathy.
Remaining employees need to hear the same information. If they learn about the layoff through rumors instead of leadership, trust erodes fast.
Outplacement for Michigan and Great Lakes Region Employers
While the principles in this guide apply nationally, our firm is headquartered in Michigan and the majority of our outplacement work happens here and across the broader Great Lakes region. We’ve provided career transition services for employers across Grand Rapids, Lansing, Ann Arbor, and throughout West Michigan since 2007, and we regularly work with companies in neighboring states whose workforce overlaps with Michigan’s job market.
What that means in practical terms is that we know this market. We know which industries are hiring, which companies are growing, and which recruiters are worth connecting with. When we write a resume for a displaced manufacturing supervisor in Grand Rapids or a marketing director in Ann Arbor, we’re writing it for the hiring managers who will actually be reading it.
In our most recent group outplacement engagement in Grand Rapids, 85% of displaced employees secured new positions within three months. In a Lansing RIF transition, over 90% received job offers within 60 days. Those aren’t hypothetical numbers. You can read the full details in our Grand Rapids case study and Lansing case study.
If you’re a Michigan employer facing a workforce reduction and want to talk about what outplacement might look like for your team, book a free outplacement consultation or call us directly at 616-631-4300.
Ready to put a plan together? Our team has helped Michigan employers of all sizes handle workforce transitions with confidence. Let’s talk about what your employees need.
Frequently Asked Questions
How long should outplacement services last?
Can employees decline outplacement?
What if I only need to let one or two people go?
Is outplacement only for layoffs, or can it be used for terminations?
Is it worth the cost?
Who provides outplacement services?
Outplacement is typically provided by career services firms, executive search firms, or specialized outplacement agencies. Some large HR consulting companies also offer it. The key is finding a provider whose team has real recruiting and career coaching experience, not just a software platform.
To learn more about our outplacement approach and what’s included, visit our outplacement and career transition services page.
