You signed the contract. You followed all the right steps. You announced the restructuring and reassured your departing employees that support was waiting for them.
But here’s the question most HR leaders forget to ask: Did any of it actually work?
Here’s a sobering statistic. While 85% of large enterprises invest in outplacement services, only 16% of HR leaders rate their chosen providers as excellent, with nearly one-third deeming them simply satisfactory. Worse, fewer than 1 in 6 companies bother to verify if these programs deliver real value to departing employees. This blind spot doesn’t just waste resources. It puts your company’s reputation on the line during its most vulnerable moments.
"I felt like just another number"
A few years ago, a Fortune 1000 company implemented layoffs. On paper, everything was structured by the book. They hired a top-tier outplacement provider, ensured reasonable severance packages, and checked every procedural box. But the results told a different story.
One employee spoke about attending group workshops, describing them as slightly helpful but impersonal. However, when it came time to connect with her assigned career consultant, the process fell flat. “I felt like I was chasing the support I was promised,” she explained.
Another dismissed the experience outright. “The program left me feeling worse. At a time I needed guidance most, it was just demoralizing.”
These stories aren’t isolated. They reveal a persistent gap between what companies believe they’re providing and what employees actually receive. This disconnect is becoming even riskier as the outplacement industry grows, projected to reach $5.21 billion by 2025. Yet shockingly, quality verification remains a rare practice.
What's Really Missing in Most Outplacement Programs
If you’ve glanced at shiny brochures from outplacement providers, you’ve seen boasts of high placement rates, robust tech platforms, and sweeping claims of participant satisfaction. But behind the scenes, these programs often fall short where it matters.
- Passive engagement
Employees already facing emotional and financial stress are often asked to “opt-in” to coaching services or wade through complex systems to receive help. - Technology-focused over human-centric
Self-serve platforms may be cost-efficient, but they overlook the importance of direct human connection during transitions. - Generic solutions for unique challenges
One-size-fits-all content doesn’t address varying career stages, industries, or individual roles. - Lack of empathy
Programs that skip over the emotional toll of job loss to rush participants into tactical job searches miss a key human element. - Poorly set expectations
Many HR teams hand off responsibilities to providers without sharing necessary context, disrupting the chance for tailored, effective service.
Failure to address these areas isn’t just inefficient; it’s harmful. Companies lose opportunities to safeguard their reputation, retain the trust of remaining employees, and honor their commitment to a supportive offboarding process.
How Smart HR Leaders Set Themselves Apart
Breaking the mold requires HR leadership that treats outplacement as more than a box to check. The companies that succeed take three proactive steps to ensure every dollar invested delivers real value.
1. Set Clear Standards from the Start
Don’t wait until issues arise. Begin with clear quality benchmarks and work collaboratively with providers to meet those expectations:
- How quickly must participants connect with their assigned coach?
- What level of personalization should be guaranteed?
- How will emotional and practical support intersect?
- What feedback mechanisms will ensure employees’ voices are heard?
- What key details (e.g., participant roles, tenure, or career goals) will your HR team provide the provider to enable tailored guidance?
2. Prioritize Human-to-Human Connection
Effective outplacement programs integrate personalized, compassionate support that feels genuine to participants. Strategies leading organizations implement include:
- Ensuring individuals are contacted by their coach within 24 hours of joining the program.
- Using surveys or “pulse checks” to make people feel valued during the process.
- Creating resources or sessions that specifically address different career stages, skill sets, and industries.
- Building support groups or shared communities within outplacement programs to reduce isolation.
3. Monitor and Adjust with Real Data
Don’t rely solely on completion metrics or placement rates. Companies that excel ask deeper questions, like:
- Did participants feel respected and supported throughout this process?
- Did the program address their stress and questions effectively?
- Are former employees willing to speak positively about the company post-exit?
Here’s a practical example to inspire action. A healthcare organization in Michigan began conducting random follow-up calls with 10 individuals who completed outplacement services. These candid insights allowed them to refine how they chose providers, resulting in significant improvements to their program’s impact.
Why Quality Outplacement is a Strategic Imperative
Getting this right isn’t just about helping departing employees. It creates ripple effects that strengthen an organization from within.
Rebuilding Trust with Remaining Employees
Research shows 71% of employees lose motivation after layoffs, and 61% hesitate to recommend their employer to others. But when remaining staff see their colleagues treated with dignity and respect, they’re far more likely to view leadership as trustworthy.
Boosting Future Talent Acquisition
With 86% of job seekers researching company reviews before applying, how you handle layoffs can directly impact your ability to attract skilled candidates in the future.
Transforming Former Employees into Ambassadors
Well-supported employees often remain loyal advocates, even when their roles are eliminated. A positive exit experience reinforces their willingness to stay connected with your brand or company for years to come.
The Next Steps You Can Take Today
If you’re ready to close the quality gap and stop leaving outplacement success to chance, here’s where to begin:
Call five former participants now
Reach out to people who recently used your outplacement services. Ask them what worked, what didn’t, and what they wish the program had offered.Set participation benchmarks
Align with your provider to define what great engagement looks like. Track metrics like connection speed, recurring touchpoints, and tailored resource usage in future programs.Outline quality expectations upfront
Partner with your provider to lay a foundation of requirements—from coaching responsiveness to ensuring emotional care is integrated into the program flow.
Every improvement you make to outplacement programs sends a message. It shows your employees, both current and former, that your organization honors its people—even in moments of transition. That dedication doesn’t just protect your reputation; it cultivates long-term goodwill.
By adding a layer of verification and care, you’re transforming a necessary expense into an investment that builds trust, strengthens morale, and preserves your company’s standing for years to come.
Starting now, that fifteen-minute check-in call could be the most valuable time you’ll spend all week.
References:
- Institute for Corporate Productivity, “Outplacement Services Market Analysis,” 2022
- Workplace Transition Research Group, “Layoff Aftermath Survey,” 2023
- Human Capital Research Institute, “Impact of Downsizing on Employee Retention,” 2022
- Employer Brand Analytics, “The ROI of Employer Reputation Management,” 2024
