Outplacement Services

Outplacement is a service that companies offer to its exiting employees after a layoff, reduction in force, shutting down of a business unit or when merger and acquisition takes place. In earlier times, corporates had been using the traditional outplacement solutions to help their employees to land to a new job. In last few years, the purpose of providing outplacement services has been highly critical in terms protecting brand name, engagement with current employees and reduce the cost involved in layoff.

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Category Alerts


Tech executives plan to increase the revenue by focusing on cost cutting

March 21, 2023
alert level: High

PayPal, HubSpot, and HarperCollins announce Layoffs

February 01, 2023
alert level: High

Google's parent company "Alphabet" has announced 12000 tech layoffs

January 25, 2023
alert level: High

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Outplacement Services Industry Benchmarks

Savings Achieved

(in %)

The average annual savings achieved in Outplacement Services category is 7.70%

Payment Terms

(in days)

The industry average payment terms in Outplacement Services category for the current quarter is 59.4 days

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    Outplacement Services Suppliers

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    Outplacement Services Supplier

    Find the right-fit outplacement services supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

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    Sample Supplier
    Adecco Inc.
    Jackson, Mississipi
    Duns number

    D&B SER Rating

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    Up to 3 months

    1 9
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

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    Outplacement Services market report transcript

    Global Outplacement Services Market Outlook

    • Global outplacement services market size was valued at $2.38 Billion in 2022 and is expected to expand at a CAGR of 5.69 percent during the forecast period, reaching $3160.32 million by 2027. 

    • The outplacement market is countercyclical, it tends to do better during down economies and vice versa. Due to flexible work arrangements, mass layoffs by global organizations and start-ups around the world have also grown the importance of outplacement services in 2023

    • Simultaneously, increasing career activism among companies to retain workers in a market, which is going through severe skills shortages, has led outplacement companies to further diversify their business portfolio to include proactive services not directly related to layoffs

    • The market for outplacement services is categorized into two segments based on end-users: Personal and Enterprise. Among them, the Enterprise segment is expected to exhibit the highest compound annual growth rate (CAGR). This can be attributed to the utilization of outplacement services by large enterprises for their workforce. 

    Global Outplacement Industry Trends

    • North Americas is a highly matured and the developed region, so the growth potential for outplacement services is increasing and would continue in the future. The European region is second most mature and developed region compared with others regions, such as LATAM, APAC, and MEA

    • The North America region is anticipated to exhibit promising growth in the coming years, driven by companies in the region striving to sustain their competitiveness in the market. This has led to resource limitations and employee exits as companies implement strategies to streamline operations and improve their competitive positioning.

    • Australia in the APAC region is considered to mature and developed market for outplacement services with a revenue projected to $242.47 million by 2027, growing at a CAGR of 4.7 percent

    • MEA is an underdeveloped market for outplacement services, due to the gap of maturity among the buyers and suppliers in the countries

    • The APAC market for outplacement services is moderately matures as developed nations, such as Australia and Japan, are better serviced for outplacement/career transitions services

    Global Outplacement Drivers and Constraints

    The key drivers are safety against litigation, growing customizable services, frequent mass hiring/lay offs. Whereas constraints are budget/funding from head, risks of fraudulent agencies approach, and employee privacy concerns


    Safety against Litigation

    • It is considered as one of the drivers for the industry, as companies adhere to the litigation risk of not facing any legal action been provided by the employees for laying off and not providing any kind of support

    Data Intelligence and Emotional Intelligence

    • The future of outplacement mainly lies on the two major components: data intelligence and emotional intelligence

    • Data Intelligence would mainly focus on predictive analytics, big datasets, and data skills, whereas emotional intelligence would focus on element, such as individual support to the employee, insight sharing, and well-being focused

    Frequent Mass Layoffs and Hiring

    • Companies doing frequent mass hiring, post which lay offs, lead to the growth of the industry, as they offer outplacement services to their employees

    • For e.g., COVID-19 pandemic lead to revised business strategies, including mass layoffs. This, in turn, lead to an increased demand for outplacement or career transition services for the affected employees, to help them overcome emotional stress and to provide the necessary training and guidance to pursue new career opportunities



    • Budget constraint is a major problem with most of organizations, generally small and mid-size organizations, which leads to a compromise for outplacement services

    Risks of Fraudulent Agencies Approach

    • Buyers should be careful in assessing the service providers for outplacement services, as there might be fraudulent agencies, who give false promises for fulfilling the services for their employees

    Employee Privacy Concerns

    • Due to individual’s privacy also the industry constraints for a growth, as not every individual would be willing to take up the services

    Cost Structure Analysis : Outplacement Services

    Cost components for outplacement services are showcased in this slide. The total cost incurred by engaging global vendor is comparatively higher than regional supplier. This information shall help HSBC in developing its cost-effective approach.

    Cost Drivers

    Technology cost 

    • The technology cost of regional providers is similar to that of global providers, as the global companies leverage on their efficient back office system maintenance compared to regional providers.

    Personnel cost

    • The personnel cost will be higher for the global outplacement provider, as the average experience for career consultants is higher for global compared to a regional vendor, and hence, the salary paid as well.

    Profit margin

    • The global suppliers operate through their subsidiary business units, network or association, M&As or third-party vendors across geographies

    • Regional suppliers operate through partnerships or M&As

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