Building a Better Severance Package with Outplacement Services

A severance package is a collection of benefits offered to employees who are being laid off. Basic perks include severance pay and extended health benefits. While not as common, outplacement services can also appear in a severance package. 

Outplacement services are incredibly valuable, helping laid off employees find a new position in their industry relatively quickly. It gives former employees the opportunity to transition smoothly out of their previous role, without needing to constantly stress about finding their next placement. 

In this article, we will explore why outplacement services are paramount for building a better severance package, and how it benefits both the employee and company. 

What are Outplacement Services?

Outplacement services are a type of employer-sponsored career support which helps laid off employees transition to a new job. The company will sponsor the employee to get personalized support from a career placement firm without paying out-of-pocket. This makes the process of being laid off significantly easier, as employees aren’t left alone to figure out their next chapter by themselves.

Depending on the provider, outplacement services offer:

1. Career Counseling & Coaching
2. Job Search Assistance
3. Networking Opportunities
4. Reskilling, Upskilling, & Career Training 
5. Emotional Support Resources

Why Employees Care About Outplacement Services

At Pathways, we’ve had companies across Canada sponsor us for employee outplacement. One of the biggest things people have expressed when working with us was graciousness for the extra support. Outplacement services prove that your company is going the extra mile to support the employee, even after termination.

It makes sense when Canada’s job market is becoming so difficult to navigate, with some of the highest unemployment rates since COVID. Today’s working class are anxious about the possibility of being laid off and not being able to find their next job quickly enough. And they have a right to be anxious — industries are evolving quickly, technology is changing how we work, and roles are becoming redundant. Today’s employees are starting to pivot into new fields as a result. 

While it may not seem immediately beneficial to fund a former employee’s career switch or job search, severance packages like these are becoming highly-sought after. It’s especially persuasive when trying to recruit top talent. 

Outplacement support gives candidates and current employees a sense of security knowing that even if they’re laid off, they’ll have the support they need to pick themselves back up. 

How the Company Benefits from Outplacement Services

Here’s a few ways the company benefits long-term from offering outplacement services in their severance package:

1. It Attracts Top Talent: Offering outplacement support demonstrates a people-first culture and adds an extra layer of security to the job, which is very appealing for today’s job seekers. 
2. It Protects the Company Brand and Reputation: Outplacement services are a way of treating department employees with care. It demonstrates empathy and acknowledges the company’s responsibility to the employee, which is hard to find in today’s job market. 
3. It Boosts Team Morale: Layoffs often leave behind uncertainty and low morale. When employees see that their colleagues are supported with career-transition resources, it reinforces trust in leadership and improves overall workplace culture.
4. It Reduces Legal Risk: Providing structured outplacement support can minimize the risk of disputes or claims by showing that the employer acted fairly during the layoff process.
5. It Maintains Connections: Former employees who feel supported are more likely to become positive brand ambassadors, recommend the company to others, or even return to the company in the future. 
6. It Improves Productivity During the Transition: Employees who learn they are being let go often become disengaged during their final weeks. Knowing they’ll be supported with outplacement support makes disengagement less likely.