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Layoffs are part of running a business. According to the Careerminds 2025 Career Transition Support Index, 61% of companies have carried out layoffs in the past two years, and 52% expect more layoffs over the next two years.
How a company supports employees during this process matters. It affects how quickly people find new jobs, how the remaining employees feel about staying, and how others view the company.
Outplacement is a service paid for by employers to help departing employees move into their next role. It usually includes career coaching, resume and LinkedIn support, job search help, and interview preparation.
When done well, it helps both the employee and the employer. In this article, we'll look at the 11 biggest benefits of outplacement for both businesses and employees.
Outplacement Benefits for Employers
1. Reduced Legal Risk and Lower Litigation Exposure
Layoffs can increase the risk of legal claims. Some of the most common reasons employees file wrongful termination lawsuits include discrimination, retaliation, breach of contract, and violations of public policy. If layoffs are handled poorly, they can lead to these types of claims.
Outplacement services help lower that risk. When employees receive career support as part of their exit package, they are more likely to feel they were treated fairly. Instead of leaving with only a severance payment, they also get practical help with finding their next job.
Offering outplacement alongside severance can reduce stress, preserve positive relationships, and lower the risk of wrongful termination lawsuits. In many cases, the cost of one lawsuit is much higher than the cost of providing outplacement, making it a worthwhile investment for employers.
2. Employer Brand Protection
The way a company handles layoffs has a lasting impact on its reputation. Departing employees can easily share their experiences on platforms like Glassdoor and LinkedIn, and negative reviews can make it harder to attract talent in the future.
Taylor Meadows, Head Strategist for Employer Brand at Glassdoor, says that losing a job is a difficult experience. Companies that handle layoffs well provide resources like job search support, mental health services, and outplacement to help employees move forward.
Outplacement shows that a company cares about its people, even when they are leaving. That message reaches departing employees, the people who stay, and future candidates. Treating employees with respect during layoffs helps protect the company's reputation and makes recruiting easier over time.
3. Improved Morale Among Remaining Employees
Layoffs affect everyone, not just the people who lose their jobs. The employees who stay pay close attention to how their coworkers are treated. If people are let go with little or no support, it can damage trust and lower morale.
Research from INTOO found that layoffs without outplacement led to a 41% drop in job satisfaction and a 20% decline in productivity among remaining employees. In comparison, companies that provide outplacement report a 20% increase in productivity, and 74% of employers say it helps maintain employee morale.
When employees see their coworkers receiving real support through career coaching and job search assistance, it shows that the company stands by its values, even during difficult times. That builds trust and helps keep remaining employees engaged and committed.
4. Reduced Unemployment Tax Costs
Outplacement can also help companies reduce unemployment-related costs. In many U.S. states, unemployment insurance tax rates are based on a company's claims history. If more former employees file for unemployment benefits or stay unemployed for longer, those tax rates can increase over time.
Outplacement helps people find new jobs faster. As a result, fewer employees may need to claim unemployment benefits, or they may receive them for a shorter period. This can improve a company's claims history and help keep unemployment insurance costs lower.
For organizations going through larger layoffs, these savings can offset part of the cost of an outplacement program, making it a valuable long-term investment.
5. Protection of Customer and Public Relationships
Layoffs are not only noticed by employees. Customers, business partners, vendors, and investors also pay attention to how a company treats people during difficult times.
Poorly managed layoffs can damage trust and hurt the company's reputation. On the other hand, providing outplacement shows that the company is handling the situation responsibly and supporting employees through the transition.
This can have a real business impact. Research shows that publicly traded companies that offer outplacement experience 5% less stock price volatility during layoff announcements than those that do not. How leaders manage layoffs sends a strong message about the company's values and long-term stability.
6. Stronger Future Recruiting and Boomerang Employee Potential
The way a company handles layoffs can also improve future hiring. When employees leave on good terms and feel supported, they are more likely to speak positively about the company, recommend it to others, or even return in the future.
These returning employees, often called boomerang employees, already understand the company and usually need less time to get up to speed. They also bring new skills and experience from other workplaces.
Outplacement helps make those future opportunities possible by giving employees a respectful and supportive exit. In fact, 78% of organizations say outplacement increases the chances of rehiring former employees, making it a valuable long-term investment in talent.
Outplacement Benefits for Employees
1. Faster Job Placement
The biggest benefit of outplacement for employees is that it helps them find a new job faster. Research consistently shows that people who receive outplacement support get hired sooner than those who do not.
Job seekers using outplacement land new roles 2.5 times faster on average. Companies with strong transition programs also report 55% faster reemployment, and 82% of employees who receive outplacement find a new job within six months.
Finding a job sooner reduces financial stress and gives people more confidence during a difficult time. With help such as resume writing, interview coaching, job search guidance, and ongoing support, employees have a clear plan instead of facing the job market alone. This is especially valuable for people who have been in the same role for many years and are unfamiliar with today's hiring process.
2. Professional Resume and LinkedIn Optimization
Many people only update their resume when they lose their job. By then, it is often outdated, poorly organized, and not designed to pass Applicant Tracking Systems (ATS) that many employers use to screen applications.
Outplacement programs usually include professional resume writing and LinkedIn profile optimization. According to CareerBuilder, 63% of HR managers pay more attention to resumes that are tailored to the specific job.
Most employees already have the skills and experience employers are looking for. The challenge is presenting those qualifications clearly. Outplacement helps employees create stronger resumes and LinkedIn profiles that improve their chances of getting interviews and finding a new job faster.
3. Improved Confidence and Emotional Stability
Losing a job is stressful. Along with financial concerns, many people also lose their daily routine, confidence, and sense of stability. Without support, it can be difficult to stay motivated and keep the job search moving.
Outplacement helps by giving employees a clear plan and expert guidance throughout the process. Research shows that 91% of people feel more confident after receiving outplacement coaching.
With a stronger resume, career advice, and ongoing support, employees can approach interviews with more confidence and focus on finding the right opportunity instead of rushing into the first job they find.
4. Higher Salary Outcomes
Outplacement helps employees do more than find a job quickly. It also helps them secure better opportunities.
Career coaching and salary negotiation support give employees the skills to evaluate job offers and negotiate with confidence. Research shows that candidates who receive professional career coaching negotiate salaries that are 12% higher on average.
Many people feel uncomfortable negotiating pay and accept the first offer they receive. Outplacement provides expert guidance throughout the process, helping employees understand their value, compare offers, and negotiate for better compensation and benefits.
5. Access to the Hidden Job Market
Many job seekers only apply for jobs they find on LinkedIn, Indeed, or company career pages. However, many roles are filled through employee referrals, recruiter outreach, and professional networking before they are widely advertised.
A 2026 LinkedIn report found that job applicants are 3.6 times more likely to be hired if they are connected to someone who works at the company.
Strong outplacement programs help employees grow their professional network, connect with recruiters, and reach out to the right companies. This gives them access to more opportunities than they would find through online applications alone, increasing their chances of landing the right role.
The Best Outplacement Company in 2026: WeAreCareer
At WeAreCareer, our outplacement programs are designed to help companies manage workforce transitions with confidence. More than 150 organizations have trusted us to protect their employer brand, reduce legal risk, and give departing employees the support they need to find new opportunities faster.
Employees receive hands-on support throughout the entire job search. That includes a professionally rewritten resume, LinkedIn optimization, active job applications submitted on their behalf, direct outreach to recruiters and hiring managers, one-on-one coaching, and interview preparation until they secure a new role.
If your organization is planning a workforce transition, book a call with our team to see how our outplacement program can help your employees land faster while protecting your business and reputation. To learn more, read our outplacement case studies here!
