Outplacement Costs Explained: How to Choose the Right Solution
If you’ve ever had to manage layoffs or terminations, you know how challenging it can be - both emotionally and financially.
Among the many considerations is outplacement support: professional assistance to help departing employees quickly land on their feet in the job market. But how much does it cost, and what options do you have?
In this article, we’ll break down the core factors that influence outplacement pricing, cover the typical cost ranges, and highlight one innovative pricing model (subscription-based) that might save you a bundle if you’re dealing with ongoing transitions.
Why Outplacement Matters
Outplacement matters because it’s not just an expense - it's a strategic investment in your company's future. When you offer structured outplacement services, you send a clear message that you care about the well-being of your employees, even as they move on.
This commitment to support bolsters your employer brand, reinforcing a culture of care and respect both internally and externally. It shows your team that you're dedicated to their success, which builds trust and loyalty throughout your organization.
In addition to enhancing your brand, outplacement can play a crucial role in reducing both legal and reputational risks. When employees feel genuinely supported during their transition, they’re less likely to pursue legal action or publicly air grievances.
This proactive approach can save you from potential legal complications and protect your company's image, keeping negative public sentiment at bay.
Moreover, effective outplacement services help speed up re-employment by equipping individuals with the right tools and coaching to secure their next role quickly.
This not only benefits the employees by reducing the time they spend unemployed, but it can also lead to cost savings by lowering severance payouts and unemployment claims. In essence, the faster your employees move on, the more you can reinvest in your business continuity.
In short, outplacement isn’t just a line item on your budget - it’s a meaningful investment in maintaining a strong, resilient organization.
By caring for your employees during transitions, you protect your brand, mitigate risks, and contribute to smoother, more efficient operations, all of which pay dividends in the long run.
Typical Outplacement Cost: A Range of Approaches
1. Per-Employee Flat Fee
Under this model, many outplacement providers offer one comprehensive flat fee per employee that covers all services and resources included in the package.
That means each employee receives access to a full suite of support - from résumé assistance and career coaching to interview preparation and emotional well-being resources - without having to worry about paying for add-ons.
The only variation in pricing typically occurs when you enroll a larger number of employees, in which case you might secure volume discounts. This approach works best if you want a straightforward, all-inclusive solution for every departing employee.
2. Tiered Packages
Alternatively, some providers offer tiered packages that allow you to choose from different levels of service based on your specific needs.
In these setups, the basic tier might include essential self-service tools and foundational resources, while higher tiers offer more intensive support such as personalized coaching, customized career planning, and additional one-on-one sessions.
As you select a higher tier, the package is designed to deliver more in-depth support, and naturally, the cost increases accordingly.
This model is particularly useful if your organization has distinct groups of employees - like entry-level staff and senior executives - who require varying levels of assistance during their transitions.
3. Monthly or Annual Retainers (Subscription Model)
For organizations that experience multiple transitions throughout the year, the monthly or annual retainer model is often the most flexible and cost-effective solution.
With this subscription-based approach, you pay a fixed fee on a monthly or annual basis that covers a set number of departing employees within that period.
This model not only offers predictable budgeting but also ensures continuous, scalable support for your workforce. It’s particularly well-suited for growing organizations, restructures, or mergers, where ongoing outplacement services are necessary to help manage frequent changes effectively.
In many cases, adopting a retainer model can provide significant financial savings while also integrating seamlessly into your broader HR strategy. This model us what we use at ShiftAgain.
Frequently Asked Questions (FAQ)
What Influences Outplacement Pricing?
Outplacement pricing is influenced by several key factors. First, the scope of services plays a major role - more comprehensive offerings, such as one-on-one coaching, advanced AI résumé tools, and extended support, naturally come with higher price tags compared to basic, self-guided programs.
The duration of coverage is also important; while shorter plans of around three months may cost less, they might not provide the level of support necessary for a successful transition compared to 6 or 12 month plans.
Customization further impacts pricing, as industry-specific coaching or specialized programs for executives can significantly increase costs.
Finally, volume and frequency matter as well; providers typically offer discounts when you enroll a larger group simultaneously or commit to an annual plan that covers multiple transitions throughout the year.
How Do You Estimate Return On Investment (ROI)?
When it comes to estimating return on investment (ROI), it's important to look beyond the initial expense. The ROI can be significant in several ways. For instance, reducing the time employees spend on job searches directly lowers severance and unemployment costs.
Additionally, seeing their colleagues receive strong support boosts the morale and loyalty of remaining staff, which can lead to reduced turnover and sustained productivity.
Moreover, providing robust outplacement services helps protect your organization from legal and reputational risks - employees who feel well-supported are less likely to file wrongful termination suits or spread negative press. In this way, outplacement is an investment that pays dividends in faster transitions, happier employees, and a stronger overall brand.
What Are Some Tips For Evaluating Outplacement Proposals?
Evaluating outplacement proposals requires a careful and thorough approach. Start by asking for detailed service breakdowns so you know exactly what is included - such as the number of coaching hours, the availability of AI tools, and the range of job-search resources offered.
It’s also crucial to compare total costs rather than just looking at a per-person expense. Consider your projected number of departures over the year; while a subscription or retainer model might initially seem more expensive, it could prove more cost-effective if multiple layoffs occur.
In addition, check testimonials and case studies, especially if you need specialized support for executive teams or niche industries.
Finally, review the fine print to uncover any potential extra fees for extended support, ongoing coaching, or program customizations, ensuring that the proposal aligns with your organization’s specific needs and budget.
How ShiftAgain Fits In: A Subscription Model Example
ShiftAgain offers an innovative subscription model that streamlines outplacement services while keeping costs predictable and manageable.
Flexible Annual Tiers: Plans start at $10,000/year for up to 25 employees (with higher tiers for larger groups), covering all the usual outplacement services - coaching, AI coaching tools, and more.
Predictable Costs: A single payment for the year covers everything; no per-employee upcharges, no additional costs.
Immediate Enrollment: When you have a layoff, you simply submit the departing employee’s details and they’re enrolled the same day.
Who Benefits Most: If you foresee more than a few departures across 12 months, this kind of “all-in-one” subscription can save you up to 50% compared to traditional per-employee fees.
That said, if layoffs are rare and small in scale, they also offer a one-time transition option ($650 per employee for a single layoff event).
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Recap/Final Thoughts
Outplacement isn’t one-size-fits-all. As you weigh the costs, think about the bigger picture: your brand, your employee morale, and how quickly departing team members can successfully transition.
Whether you choose a per-employee fee, a tiered package, or a subscription model like ShiftAgain’s, the best outplacement program is the one that aligns with both your budget and your organization’s commitment to employee well-being.
By doing your homework and evaluating the full scope of services, you can find a cost-effective, high-impact solution that benefits everyone - from those moving on to those staying behind.
Interested in learning more about subscription-based outplacement? Check out ShiftAgain or other retainer-focused providers to see if this pricing model fits your forecasted needs. Otherwise, consider a reputable per-employee or tiered package if you prefer a more traditional approach.
The key is ensuring departing employees feel supported, which ultimately safeguards your company culture and reputation in the long run.
Tags: outplacement services cost, cost of outplacement services, how much do outplacement services cost, average cost of outplacement services, outplacement service costs, outplacement services pricing
Author: Reid Alexander
Disclaimer: This content is for informational purposes only & not intended as professional legal or HR advice. Consult with qualified professionals for advice tailored to your specific situation. The author & publisher disclaim any liability for errors, omissions, or actions taken based on this content.