Outplacement Services vs Internal HR: What’s the Best Way to Support Redundant Employees?
- Website author
- Aug 8
- 3 min read
When companies face redundancies, HR teams are tasked with managing one of the most sensitive and high-stakes processes in the workplace, helping employees transition out of the organisation with dignity and clarity. One of the key decisions for HR leaders is whether to manage the career transition process entirely in-house or partner with an external provider specialising in outplacement services.
While both options have merit, the right choice depends on your resources, objectives, and the scale of the redundancies. In this article, we’ll explore the pros and cons of internal HR-led redundancy support versus external outplacement services, and outline why many businesses today are turning to modern, AI-powered providers like Jobago for more efficient, scalable solutions.
Understanding Outplacement Services
Outplacement services are structured programmes designed to support employees who are leaving a company, often due to redundancy, restructuring, or role elimination. Traditional services include CV writing support, interview coaching, career counselling, and job search assistance. Modern providers now integrate AI-driven job matching, LinkedIn optimisation, and industry-specific resources to make the process faster and more personalised.
The goal of outplacement is twofold:
Help departing employees land their next role faster
Protect the company’s reputation and maintain morale among remaining staff
Option 1: Internal HR-Led Redundancy Support
Many organisations opt to manage redundancies entirely in-house. This approach usually involves the HR team overseeing exit communications, providing job search resources, and occasionally offering career workshops.
Advantages of Internal HR Outplacement:
Familiarity with Company Culture: Internal HR understands the organisational context, making it easier to tailor support to employees’ experience.
Lower Direct Costs: Using internal staff can seem cost-effective in the short term, especially for small-scale redundancies.
Control Over Messaging: All communications remain in-house, ensuring consistency with company values and tone.
Limitations of Internal HR Outplacement:
Limited Capacity: HR teams already have ongoing responsibilities. Adding outplacement can stretch resources thin, especially during large layoffs.
Lack of Specialist Expertise: Career coaching, industry-specific networking, and up-to-date knowledge of ATS (Applicant Tracking Systems) often fall outside traditional HR skill sets.
Slower Processes: Without dedicated technology or systems, job matching and follow-up can be manual and time-consuming.
Option 2: External Outplacement Services
External outplacement providers specialise in career transition support. Modern solutions, like Jobago, combine human coaching with AI-driven tools to scale support efficiently.
Advantages of External Outplacement Services:
Specialist Expertise: External providers have trained coaches, industry connections, and deep experience in helping employees navigate the job market.
Scalability: Providers can handle one redundancy or hundreds, adapting resources to match demand.
Faster Job Search Outcomes: AI-powered tools match candidates to roles instantly, reducing the time to re-employment.
Employer Brand Protection: Professional, structured support reflects well on the company, reducing the risk of negative reviews.
Reduced HR Workload: External teams handle the bulk of the transition process, freeing HR to focus on internal priorities.
Potential Drawbacks of External Services:
Cost: While modern platforms have reduced pricing, there is still a direct financial cost compared to using internal resources.
Perceived Distance: Some employees may prefer dealing directly with company HR rather than an outside party — though good providers mitigate this by offering personalised, high-touch support.
Cost Comparison: Internal vs External
At first glance, internal support appears cheaper. However, when factoring in HR staff time, slower re-employment rates, and the risk to employer brand, external outplacement can deliver a higher ROI.
For example, if redundant employees find jobs faster, the company may reduce unemployment insurance contributions, limit legal disputes, and improve Glassdoor ratings, all of which have long-term value.
Why Many Businesses Combine Both Approaches
Some companies take a hybrid approach: HR manages the initial communication and emotional support, while an external provider delivers structured job search assistance, training, and coaching. This model leverages the trust and familiarity of internal HR with the expertise and scalability of external outplacement.
Why AI-Powered Outplacement is Changing the Decision
Traditional outplacement could be expensive and slow, making it harder for smaller companies to justify. Jobago’s AI-powered outplacement services have changed the equation:
Lower Cost Per Employee: Digital-first tools make professional outplacement accessible for SMEs and startups.
Custom Career Pathways: AI maps transferable skills to emerging industries.
24/7 Support: Employees can access tools and resources anytime, without waiting for scheduled sessions.
Final Recommendation
If your redundancy is small-scale, with employees in easily transferable roles, and your HR team has career coaching expertise, internal support may suffice. However, for larger restructures, specialised skill sets, or situations where employer brand protection is critical, external outplacement services, especially modern, AI-driven platforms, offer faster, more effective outcomes.
If your business is facing redundancies, don’t risk your reputation or employee trust. Learn how Jobago’s AI-powered outplacement services can combine personal support with cutting-edge technology to protect your people — and your brand.
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