Outplacement is unfamiliar territory for many people. Yet it is an important topic if you are facing dismissal, a reorganisation or an expiring contract. One of the first questions that then arises is: what does it actually cost, and who pays for it? In this article, we explain what an outplacement payment entails, how high it is on average and when you are entitled to it.
What exactly is an outplacement payment?
An outplacement allowance is a financial contribution intended to cover the costs of an outplacement programme. With outplacement, you receive professional guidance to find a new job or career direction as quickly and effectively as possible after leaving your current employer. The fee covers the costs of this guidance, such as coaching, career advice and practical support in your job search.
The compensation differs from a transition allowance. A transition compensation is a statutory severance payment you receive as an employee upon dismissal. An outplacement compensation is specifically aimed at funding career guidance, not income compensation. In practice, the two are sometimes combined or offered side by side.
How high is an outplacement fee on average?
The amount of an outplacement fee varies greatly and depends on the duration and intensity of the route, the level of the employee and the agreements with the outplacement agency. Overall, the costs for an outplacement process are between 1,500 and 10,000 euros, with processes for higher positions or longer guidance periods being on the higher side.
Shorter pathways of a few months are usually cheaper than extensive programmes lasting a year or more. Customisation also plays a major role: a programme fully tailored to your personal situation, talents and career goals requires more investment than a standard programme. Always ask in advance for a clear overview of what is included in the price, so you can compare well.
Who pays the outplacement fee: employer or employee?
In most cases, the employer pays the outplacement fee. This is also legally enshrined in certain situations. When an employer dismisses an employee and owes a transition fee, the employer can deduct the cost of outplacement from that transition fee under certain conditions.
As an employee, you only pay for outplacement yourself if you actively choose it and the employer does not contribute to it. This can be the case, for example, if you resign yourself or if there is no legal obligation for the employer. It is always wise to make clear agreements on this when terminating your employment, preferably laid down in a settlement agreement.
When are you entitled to an outplacement payment?
You are entitled to an outplacement allowance when your employer is responsible for terminating your employment and you, as an employee, are entitled to a transition allowance. This applies in case of dismissal at the initiative of the employer, in case of reorganisation or when a temporary contract is not extended at the initiative of the employer.
There are also situations where outplacement is required by law, namely in the so-called second track process. If an employee can no longer return to his own job due to illness or limitations, the employer is obliged to actively look for other work, including outside his own organisation. In those cases, outplacement is part of the reintegration obligations. Outside these legal situations, outplacement is not automatically a right, but can be included as an agreement in a settlement agreement or collective agreement.
What can you expect from an outplacement process?
An outplacement programme offers professional guidance in the transition to a new position or career direction. You can count on career coaching, help in preparing a strong CV and LinkedIn profile, preparation for job interviews and insight into the current job market.
Good outplacement programmes go beyond practical support. They also help you clarify who you are, what you can do and what you want. That self-insight forms the basis for sustainable career choices. Scientific methods, such as assessments that map your cognitive behavioural preferences and natural talents, can play a valuable role here. A path is most effective when it is fully tailored to your pace, needs and ambitions.
How to choose the right outplacement agency?
Choosing the right outplacement agency starts with asking the right questions. Pay attention to the coaches' experience, the agency's approach and whether the process is truly tailor-made. An agency that works with evidence-based methods and proven results offers more security than one with a standard package.
Concrete points to consider when choosing an outplacement agency:
- Does the agency offer customisation or work with set programmes?
- What is the background and experience of the coaches?
- What methods are used to clarify talents and career goals?
- How long does the course take and what exactly is included?
- Are there any references or experiences of previous participants available?
Also take the time to request an intake interview. That way, you will quickly feel whether there is a good click with the coach and whether the approach suits you. A relationship of trust with your coach is essential for a successful programme.
How Nieuwkans helps you with outplacement
At Nieuwkans, we believe that outplacement is an opportunity to rediscover what drives you and what you want to achieve. We do not offer standard processes, but always personal guidance that is fully tailored to your situation, ambitions and pace. Our approach is concrete, people-oriented and scientifically based.
What you can expect from us:
- Personal career coaching by experienced coaches from Utrecht
- Understanding your natural talents through the BrainsFirst methodology
- Practical help with CV, LinkedIn and job interviews
- Guidance on exploring new career directions
- A journey at your own pace, with you as the individual at the centre
Want to know more about outplacement for employees And what we can do for you? Contact us and we will discuss together what is the best next step for you.