How Much Does Outplacement Cost?
If you are thinking about providing outplacement services for your transitioning employees, it's natural to wonder about what the total investment would be.
How much time will this take?, What do I need to do?, and the most common of them all, What's this going to cost us?
It's a common question, and rightfully so, because understanding the financial aspects of this investment is critical in making an informed decision.
The cost of outplacement services can vary depending on several factors, such as the level of service provided, the organization's size, and the program's duration.
Today, I’m going to dig into the different types of outplacement services available and the typical costs associated with each.
How Much Does Outplacement Cost?
Individual Outplacement Service Cost
Individual outplacement services are designed to provide one-on-one support to employees who have been let go. This type of service is tailored to each individual's specific needs and can include career counseling, resume writing assistance, and interview coaching.
The cost of individual outplacement services depends on the level of service provided—generally, the more comprehensive the service, the higher the price.
As a rule of thumb, they will typically cost you between $500 to $10,000 per person (or more).
Group Outplacement Service Cost
Group outplacement services are designed to provide support to multiple employees at once. This type of service can include things like group workshops, job search resources, and networking opportunities.
The cost of these services can vary depending on the size of the group and the level of service provided. Generally, they are less expensive than individual services but may not offer the same level of personalized support.
As a rule of thumb, they will typically cost you between $300 to $5,000 per person.
Executive Outplacement Service Cost
Executive outplacement services are designed for high-level executives who have been let go. This service can include executive coaching, leadership training, and assistance with administrative job searches.
The cost of these services can be significantly higher than individual or group services due to the level of expertise required to provide these services and the detail that goes into each transitioned employee.
On average, executive outplacement services cost between $5,000 to $20,000 per person (or more).
What is the Average Cost of Outplacement Services?
As you can see, the cost of outplacement services can vary widely depending on several factors. Individual services are more expensive than group services, and executive services can be even more costly.
Overall though, the average cost of outplacement services industry-wide hovers around $1,900 per employee.
If you need help breaking down the pricing of an outplacement agency, we have a simple Outplacement Calculator that provides a quick and accurate estimate of how much it'd cost to help your employees transition into a new role. You can access that below or here: Outplacement Cost Calculator.
Wrapping Up | How Much Does Outplacement Cost
There’s no doubt about it; navigating the complexities of layoffs and staff transitions is challenging for any organization (but a part of doing business).
Offering outplacement help not only eases the transition for displaced employees but it also positively affects your company's reputation and morale.
While there is a price associated with providing these services, try to view outplacement not merely as an expenditure but as an investment in the well-being of your employees and organization.
It can help maintain your brand image, prevent legal issues, and foster a culture of loyalty/respect. After all, the true measure of a company's character is not just how it treats its employees in times of prosperity but also during challenging transitions.
We hope this helps with your decision-making but feel free to reach out with any questions!
Tags: how much does outplacement cost, outplacement services cost, average cost of outplacement services
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.