Outplacement is a term that comes up more and more in the workplace, but many questions still exist about its practicalities. Who actually pays for it? Are you entitled to it? And what does it get you? In this article, we answer the most frequently asked questions about outplacement, so you know exactly where you stand.
Whether you are facing a reorganisation or want to change jobs for another reason, it is good to know how outplacement works and what options are available to you. Below you will find clear answers to the questions that really matter.
What is outplacement and when is it used?
Outplacement is a counselling process in which an employee receives professional support in finding a new job or determining a new career direction. It is deployed at the time when employment ends, for example due to a reorganisation, an expiring contract or another situation where employer and employee part ways.
During an outplacement programme, you work with an experienced career coach on your self-insight, your application skills and your positioning in the job market. You rediscover what drives you, what talents you have and how best to use them. This makes outplacement more than just a search for a new job: it is an opportunity to consciously give direction to your next step.
Who pays the cost of outplacement?
In most cases, the employer pays the cost of outplacement. When an employer takes the initiative to terminate employment, it is common for the employer to offer and fund an outplacement programme as part of the redundancy or social plan.
This is not only a matter of good employment practice, but can also be stipulated in a collective agreement or a settlement agreement. In some cases, the compensation for outplacement is included as part of the transfer compensation or as a separate agreement in addition to the transfer compensation. It is wise to have this properly recorded in the dismissal documentation, so that, as an employee, you know for sure what you can claim.
In exceptional situations, an employee pays for outplacement themselves, such as when someone wants to change jobs voluntarily or when an employer does not offer compensation. However, this is the exception, not the rule.
Is an employer obliged to offer outplacement?
An employer in the Netherlands is not legally obliged to offer outplacement. There is no general law prescribing it. Nevertheless, the obligation may derive from a collective agreement, a social plan or individual agreements in a settlement agreement.
Although there is no legal obligation, offering outplacement is increasingly seen as a form of good employment practice. Judges in dismissal cases sometimes also look at whether an employer has done enough to support the employee in finding new work. Failure to offer outplacement may in certain cases factor into the assessment of whether a dismissal was reasonable. It is therefore in the interest of both parties to make clear agreements in this regard.
How much does an outplacement process cost on average?
The cost of an outplacement process varies greatly, depending on the duration, intensity and level of support. A shorter process of several months for an executive-level employee usually costs less than an extensive process for someone in a managerial or specialist position.
In general, the cost of a complete outplacement process ranges between several hundred and several thousand euros. Factors that determine the price include:
- The duration of the trajectory
- The number of coaching sessions
- Using complementary tools, such as talent measurement or assessments
- The employee's level of education and position
- Customisation versus more standardised offerings
It is wise to make clear agreements in advance about what the course entails and what the costs will be, so there are no surprises for employer or employee.
What are the benefits of outplacement for the employee?
Outplacement offers employees professional guidance and structure during a period often perceived as uncertain or tense. It not only helps you find a new job faster, but also to make more conscious and confident choices about your career.
The concrete benefits for employees are:
- Greater self-insight: You will discover what you really want, what you can do and what drives you.
- Better job application skills: You will learn how to present yourself strongly in the modern job market.
- Personal guidance: A coach thinks with you and provides tailor-made support.
- Faster transition: With the right guidance, you will usually find a suitable new position faster.
- More confidence: You will enter the job market stronger and with more direction.
Outplacement is also a chance to take a moment to reflect on what you really want. Perhaps there are plans or ambitions you have been putting off for a while. A good programme gives you the space and the tools to get started.
As an employee, when can you apply for outplacement?
As an employee, you can apply for outplacement the moment your employment ends or is about to end. This could be in the event of a reorganisation, a forced dismissal, a settlement agreement or the expiry of a temporary contract without extension. The earlier you discuss this with your employer, the better.
It is wise to discuss outplacement while negotiating your departure, for example when drafting a settlement agreement. You can then ask for outplacement to be included as part of the agreements, in addition to or instead of part of the transitional compensation. Get advice on this from a legal advisor or union, if necessary, so that you know what is reasonable to ask for in your specific situation.
Don't wait too long to apply for outplacement. The sooner you start, the more time and space you will have to think carefully about your next move and prepare it properly as well.
How Nieuwkans helps you with outplacement
At Nieuwkans, we believe that outplacement is more than finding a new job. It is an opportunity to rediscover what drives you and take the next step with confidence. We do not offer a standard route, but always personalised guidance that suits who you are and what you need.
What we do for you:
- Personal coaching at your own pace and tailored to your situation
- Understanding your talents and behavioural preferences through evidence-based methods, including the BrainsFirst methodology
- Practical guidance on applying for jobs, networking and presenting yourself on the job market
- Space to reflect on what you really want, also in the longer term
- Guidance from Utrecht, with personal attention from experienced career coaches
Want to know what a outplacement programme for employees at Nieuwkans can do for you? Contact us and we will discuss together which guidance is best suited to your situation.