Why Add Outplacement?


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Outplacement programmes can give you one-to-one practical and emotional support with your job search with access to expert knowledge on the current job market and practical tools. In fact, it has been estimated by employment experts that having outplacement support can decrease the amount of time getting back into work by as much as 50%.

As your career situation is unique to you, you may need more or less support with different aspects of your job search. Look for an outplacement programme that allows you to choose the help you want. This help can include:

  • Emotional support to help you through this transition
  • Understanding and valuing your skills and capabilities
  • Exploring career options so that you are clear about what next so that you approach your job search in a focused way
  • Refining your interview skills and building confidence
  • Devising a well-written CV that will get you shortlisted
  • Using social media in your job search
  • Making the most of your network to unearth those unadvertised roles

Why add outplacement as an employee?

As the employee being asked to sign off a settlement agreement there are many reasons why you want to include outplacement as part of the agreement.

  1. Outplacement is really valuable you’re soon going to face the job market so outplacement will help you evaluate your options, make any changes that will be beneficial for you and make the move into your next role more effectively. It enables you to move into a better role quicker than without the support. You will be negotiating lots of things on your agreement, but most revolve around money. Being out of work for any amount of time can have a far bigger financial impact. So, reducing this time will help financially.
  2. You may get it for free if it’s offered great but if not ask. If they say yes its cost you nothing. The chances are they have asked you to sign the agreement not the other way round so they should be helpful and supportive.
  3. If you have to pay for it do it now. Outplacement as part of any exit agreement is not a taxable benefit. Also, your employer can claim back the VAT on the service. If you are under the £30k allowance with your agreement and you ask them to pay and deduct the ex VAT amount off your payment you’ll save the VAT, so a 20% saving. If you’re a higher rate tax payer and your agreement is over the £30k threshold then this saving goes up to over 50%!
  4. What if you’re offered the money rather than the outplacement? For the above reasons don’t take the cash. You’ll not make the savings you should. You should however be able to choose the provider you want.
  5. If you’re not sure? Call our team to discuss your situation. Whilst we can’t provide legal advice we deal with Settlement agreements daily and you’ll find our advice helpful and often can save you a lot of time and allay concerns.
  6. If you’ve got your next job lined up should you still take it?  Yes, if you’re using us then the programme hours are accessible for three years from purchase (with most providers you only get 12 months access)  so you can access help anytime during that period. It’s not unusual for people to find the job they had lined up doesn’t quite turn out as expected.

Why add outplacement as an employer?

There are many reasons as an employer you should add outplacement for your employees who you’re asking to sign a settlement agreement.

  1. Outplacement is helpful support for them. At what may be a difficult stage in their career, outplacement provides really helpful support for them to take stock, review their options and make a positive transition into their next role
  2. Be seen as a caring employer. By providing outplacement support you are being a caring employer and you are also being seen to be one, by the individual, their colleagues who are remaining with you, and the outside world. There are countless examples of where employers have handled exits poorly to their cost.
  3. Reduce legal risks and costs.  By providing outplacement you reduce the likelihood of a difficult exit. The individual feels better and if things do go down a legal route subsequently, being seen to have provided outplacement support shows you were doing everything you could to help them.
  4. Ambassadors for life.  The goal of every employer should be to make all employees, who journey through their organisation, ambassadors for life. If their outplacement support is a positive experience, they are far more likely to speak well of your company long after they’ve left. If they can still be effectively selling your services and brand for years after they’ve come off payroll – your outplacement programme will have paid for itself several times over.


How much should I allow for outplacement?

We can send you our outplacement brochure with programmes and prices but you’re always best to have a chat with us to get more specific advice. As a guide, for Directors allow £5,000 +VAT. Management £2,000 to £4,000 and junior Staff £1000 – £2000.

I’ve got a large number of junior staff, is there a lower cost option?

Yes. We offer various packages with online support together with workshops and optional one to one support. These can be from around £100 per person.

I have a fixed budget and am unsure of staff numbers. Can you help?

Absolutely. This is really common. We can discuss how you can maximise the service provision and keep within budget.

When should I talk to you?

Now! The earlier you can have the conversation with us the better. If this is last minute purchase don’t worry – we’ve never missed a deadline. But if you have time then we can discuss options with you and importantly help with communication pieces so that when you need to talk to affected staff you have everything you need. And that really helps make a difficult discussion go a lot smoother.

Should I just give them the money as get them to sort it out?

No, as this will give them less for their money as they won’t be able to claim the VAT back and they may be taxed on it.