Before Buying Outplacement: How to Select the Right Program for Your People

When layoffs strike, the actual costs extend far beyond severance checks. The remaining employees' productivity drops. Glassdoor ratings tumble. Legal risks multiply. Outplacement services can dramatically reduce these hidden costs, but in a market where average programs can range from $1,500 to $20,000 per employee, what actually determines whether you're making a wise investment or overpaying?

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What You’re Buying vs What You Should Buy

Traditional outplacement firms offer a checklist of services, including career coaching, resume review, and interview preparation. They charge premium prices for standardized playbooks that treat workers identically.

Modern providers deliver something entirely different: personalized guidance that adapts to each specific situation. Your departing sales director receives help leveraging her executive network, while your junior developer gets technical interview training. Each receives exactly what they need to advance their careers, when they need it most.

The results speak volumes. Employees actually use the service, rather than abandoning it after one session, land jobs faster, and leave with their goodwill for your company intact.

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The Right Service for the Right Person

Three fundamental variables determine the appropriate service level for each employee: role scarcity, hiring cycle length, and search complexity. The following matching logic will help your organization match the right services to the right person, preventing overspending and inadequate support.

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Individual Contributors ($1,500-$2,000). 

Individual contributor and junior roles are more abundant. Hiring cycles move quickly. These employees require access to actionable insights to maintain high momentum, such as…

• Resume optimization for applicant tracking systems
• Skill gap identification with targeted learning resources
• High-volume job matching for abundant, faster-moving positions

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Mid-Level Management ($2,500-$5,000)

As competition intensifies and mid-level roles become more scarce, these professionals need: 

• Everything individual contributors receive
• Industry-specific coaching to articulate leadership value
• Strategic positioning for career advancement, not just replacement income
• Longer support for searches that typically extend 3-6 months

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Executives ($5,000-$20,000)

At this level, opportunities are scarce, relationship-driven, and reputation-sensitive. These leaders require: 

• Comprehensive support for searches lasting 6-12 months
• Specialized coaches with experience in complex compensation negotiation
• Reputation management and strategic networking

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The Four Variables That Dictate Price

The duration of the search obviously matters, but three other factors also contribute to these wide price bands. Coaching services account for the lion’s share of the overall cost. Finally, traditional outplacement providers charge “premiums” based primarily on brand recognition rather than superior outcomes. Many decision-makers select these established firms because they represent the 'safe choice' in corporate procurement. No one questions selecting the established brand, even when these standardized approaches fail to address employees' individual needs.

A technology-enabled delivery model fundamentally disrupts this pricing structure. Modern platforms combine AI-powered tools with human expertise precisely when each provides maximum value. This approach enables personalized journeys, where employees can select precisely what they need rather than follow rigid, one-size-fits-all programs.

At Thrive, this model drives our exceptional 74 NPS score (compared to the industry average of 28) while significantly reducing overhead costs—the result for employers: substantially lower investment per employee, faster placements, and higher satisfaction. The technology-first approach isn't just more affordable, it delivers measurably better outcomes for departing employees.

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What Separates Good Providers from Great Ones

Before signing any contracts, demand answers to these questions:

Speed of Deployment: Can departing employees access services immediately after notification?
Global Capabilities: Will your US-based developer receive the same quality support as your marketing team in Canada?
Platform Functionality: Does the technology actually guide users through their job search journey, or merely house generic resources?
Outcomes Data: The most critical factor. Satisfaction scores, landing rates, and time-to-placement separate serious providers from those simply administering services.

At Thrive, we’re transparent about our pricing and outcomes. According to a third-party study, individuals using Thrive land new roles 2.3 times faster than those without. The best part: they enjoy using the platform, which is reflected in our NPS score of 74 (the industry average is 28).

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Getting Outplacement Right

The most effective approach matches services to search complexity while delivering personalized support at scale:

Individual contributors need practical tools and high-volume opportunities
Managers require strategic positioning and longer support timelines
Executives demand specialized expertise and access to hidden opportunities

Traditional outplacement is best suited for executives. However, if you need to administer outplacement services across multiple functions and seniority levels, modern outplacement could be the solution. That’s because modern outplacement delivers better results at lower costs by combining technology with human expertise, precisely when each is most valuable.

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Related Articles You Might Like…

• Investing in Employees: The Impact on Engagement, Retention and Perception During Layoffs
• From resistance to resilience: uniting leaders and teams through times of change
• What is Outplacement?

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Ready to Move Careers Forward?

Whether planning your first outplacement program or reconsidering your current approach, Thrive helps organizations support departing employees effectively while protecting their reputation and employee goodwill. Book a demo today to learn how our technology-enabled solution delivers 2.3x faster outcomes for your departing employees.