How to Choose an Outplacement Firm That Truly Supports Your People
Choosing an outplacement firm isn’t just another HR vendor decision—it’s a choice that directly impacts how employees experience one of the hardest moments in their careers. Done well, outplacement can protect your employer brand, reduce legal risks, and help people land new roles faster.
Done poorly, it can feel like a checkbox exercise that leaves employees frustrated and damages your reputation.
So, how do you know which provider is the right fit? Let’s walk through the key factors you should weigh when deciding how to choose an outplacement firm—from the services offered to the way those services are delivered.
Why the Choice Matters
The firm you choose will shape the experience your exiting employees have. If they feel supported, respected, and equipped to move forward, they’ll speak well of your organization even after leaving.
If they feel abandoned, they may share their frustration with others - impacting both morale internally and your ability to attract future talent.
It’s not only about caring for people (though that’s essential). It’s also about protecting your business. According to a report from SHRM, how a company manages layoffs and transitions directly affects retention, productivity, and public reputation.
Key takeaway: Choosing the right firm means protecting both your employees and your company’s future.
Understand the Types of Outplacement Firms
Not all outplacement providers look the same. Some are traditional, high-touch coaching firms. Others are tech-driven platforms with AI-powered tools. Increasingly, the best providers combine both.
Traditional firms often focus on executive-level coaching, long-form workshops, and one-on-one career counselor support.
Technology-first firms deliver AI-driven resumes, job matching, and online resources employees can access immediately.
Hybrid models blend the two—digital speed with human empathy.
The right type for you depends on the size of your workforce, the roles being offboarded, and your budget.
Key takeaway: Match the firm’s strengths to your workforce needs—don’t assume one size fits all.
What Services Should You Expect?
At a minimum, outplacement should cover resume and cover letter support, interview prep, and job search tools. But the best firms go further. Look for programs that include:
AI-powered career tools such as resume builders, LinkedIn optimization, and job matching
Career assessments to identify transferable skills and new opportunities
Access to coaches for one-on-one guidance when questions arise
Networking support to connect employees with recruiters and opportunities
Emotional support during what is often a stressful life event
For example, at ShiftAgain, our outplacement services give employees access to PruE AI (with 10 AI-driven career tools like an AI Resume Builder, Career Assessment Tool, and LinkedIn Optimizer) alongside live coaches ready to step in when needed. This balance makes the process immediate and personal.
Key takeaway: The right outplacement firm doesn’t just hand out generic job listings—it empowers employees with both tools and guidance.
Consider the Employee Experience
The best way to evaluate a firm is to put yourself in your employees’ shoes. Imagine you’ve just been laid off—what would you want? Speed, clarity, and reassurance are critical.
Ask yourself:
Will employees get immediate access to tools, or do they wait days for an appointment?
Can they access support outside traditional business hours?
Is the platform mobile-friendly for frontline or hourly workers?
Do coaches understand the industries your people are moving into?
Employees who feel cared for are less likely to harbor resentment—and more likely to leave with respect for your company.
Key takeaway: The employee experience should be the number one priority in your decision.
Evaluate Scalability and Cost
Large layoffs require scalability, while smaller organizations need affordability. Some firms are built for executive transitions but become cost-prohibitive for entry-level roles. Others specialize in providing accessible solutions for hourly workers, where affordability matters most.
This is where AI-powered platforms shine. They allow firms to scale quickly without driving costs up, making outplacement more accessible across all levels of the workforce.
Key takeaway: Make sure the provider can scale up or down depending on your needs—without compromising support quality.
Look at Employer Reporting and Transparency
A commonly overlooked piece of outplacement is reporting. As an employer, you’ll want to know if people are actually using the services, what tools they’re engaging with, and whether the program is making an impact.
The best firms provide clear dashboards and updates. This not only ensures accountability but also helps you measure ROI and refine future programs.
Key takeaway: Transparent reporting lets you prove the program is delivering value—not just good intentions.
Questions to Ask When Choosing an Outplacement Firm
When you’re evaluating providers, here are some questions worth asking:
How quickly do employees gain access to services after separation?
What industries and job levels does your program best serve?
How do you integrate technology with human coaching?
Can employees access resources on their own schedule, including evenings and weekends?
What kind of reporting will we receive as the employer?
The answers will tell you a lot about whether the firm prioritizes speed, personalization, and accountability.
Key takeaway: A strong evaluation process ensures you choose a partner, not just a vendor.
The Future of Outplacement Firms
We’re in a period of transition. Firms that lean too heavily on traditional coaching may struggle to scale, while tech-only solutions risk feeling impersonal. The best outplacement firms are finding the sweet spot—offering AI-driven career support backed by empathetic human coaches.
Given that millions of workers will need to transition roles in the coming decade due to automation and economic shifts (McKinsey projects up to 375 million globally by 2030), firms that innovate now will set the standard for the future. Source: McKinsey & Company.
Key takeaway: The firms that adapt quickly—blending technology and humanity—will be the ones worth choosing.
FAQs on Choosing an Outplacement Firm
1. How much should an outplacement program cost?
Costs vary widely depending on services, but AI-driven platforms are making high-quality support more affordable.
2. Is outplacement necessary for smaller layoffs?
Yes. Even small-scale layoffs impact morale and reputation. Outplacement is valuable regardless of size.
3. Can outplacement firms support hourly and frontline workers?
Some firms specialize in this. Look for programs with mobile access and scalable pricing for hourly employees.
4. Do all firms provide AI tools?
No. Some stick to traditional coaching models. If you want AI-powered resumes or job matching, confirm it’s included.
5. How fast can employees start using services?
The best firms offer access immediately—often the same day—so employees don’t feel left in limbo.
Wrapping Up
Choosing an outplacement firm is about more than checking a compliance box. It’s about doing right by employees, protecting your brand, and ensuring smooth transitions during tough times.
When evaluating providers, focus on services offered, employee experience, scalability, cost, and reporting. Look for firms that blend AI-driven efficiency with human coaching—because that’s where real impact happens.
If you want a model of what this looks like, explore platforms like PruE.ai, which show how modern AI tools can be paired with empathetic coaching. And if you’re considering outplacement for hourly or frontline employees, services like ShiftAgain are specifically built to meet those needs.
In summary: The best outplacement firm for you will be the one that aligns with your workforce, offers immediate and personalized support, and makes the process easier for both your people and your HR team.
Tags: how to choose an outplacement firm
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.