Should Outplacement Services Be Part of Every Severance Package

Yes, many companies provide severance pay and benefits to departing employees, but an often-overlooked element is structured outplacement support. Offering career transition services in severance packages is like a win-win: it benefits departing employees but also protects the morale of those who remain. For mid-market companies—those with 200 to 5,000 employees—this support is especially critical, as structured HR processes may not always be in place to address workforce transitions effectively.

Understanding outplacement services

Outplacement services help employees transition into new roles after a layoff by providing professional support such as:

• Career coaching to help with job search strategies
• Resume and LinkedIn profile optimization to increase visibility
• Interview preparation to improve confidence and success rates
• Networking guidance to expand career opportunities
• Emotional support to navigate the psychological impact of job loss

Unlike basic severance packages that provide temporary financial relief, outplacement equips individuals with the tools to secure their next opportunity faster. According to the International Outplacement Alliance, employees who receive career transition services find new jobs 60% faster than those who do not.

Why is outplacement so important? 

We established that outplacement isn’t just a benefit for departing employees and that it has far-reaching advantages for employers as well. 

Let’s find out how both parties can benefit from integrating career transition services into severance plans.

Why smaller companies need outplacement services

While enterprise-level organizations frequently offer structured career transition support, mid-market companies—where HR departments typically run with leaner teams—tend to neglect this area.

Why? Many mid-sized firms assume outplacement is too expensive or unnecessary. However, the cost of not providing it can be far greater in terms of damaged brand reputation, disengaged employees, and lost productivity.

How Pender & Howe can help

At Pender & Howe, we are in a unique position to bridge this gap. As a company that specializes in executive search and talent strategy, P&H already has strong relationships within the mid-market hiring space. By introducing outplacement services, we can help companies manage workforce transitions effectively while leveraging our hiring network to accelerate job placement.

For mid-market firms looking to compete with larger corporations in employer branding and workforce stability, structured outplacement support isn’t just a ‘nice to have’—it’s a strategic necessity.

Bottom line: outplacement is a great move for mid-market companies

For mid-market businesses looking to build a reputation as an employer of choice, integrating outplacement into severance packages is a strategic investment that supports former employees, protects company morale, and strengthens long-term business resilience.

As Bill Campbell, one of the most influential executive coaches in Silicon Valley, once said:

“You have to be very mindful of how you treat people on the way out and ensure it’s always led with empathy. At the end of the day, the person you are letting go is likely better friends with the person you’re keeping on your team. They will always be aware of how you handled the situation—and understand that they could be next.”

With this philosophy in mind, we are committed to helping mid-market businesses navigate workforce transitions with empathy, professionalism, and long-term strategic foresight.

Want to find out more? Reach out to us and let’s connect!