What is the future of outplacement services in Australia?

The outplacement industry is evolving. From a short-term, in-person, reactive response to redundancy, it’s transitioning into a long-term, AI-backed, proactive partnership. The future of outplacement services in Australia is bright, for those that are ready to embrace change. 

Traditionally, outplacement services were brought into a business when workforce downsizing was on the cards. Designed to support redundant workers into meaningful new positions externally, they provided impacted staff with in-person career coaching, resume advice, and interview prep. 

With the advent of virtual working and the adoption of AI, outplacement has evolved. Career transition programs in Australia still offer the same services, but with updated delivery methods and a broader range of support for employers and employees alike. 

The greatest difference between past and future outplacement services is that delivery will be increasingly tech-enabled. Beyond the technical advancements, career coaches now have a greater understanding of the mental health impact of job loss and can tailor their support accordingly. 

Businesses will see more benefits from partnering with an outplacement service in the future – not only in terms of corporate branding and reputation, but also in terms of the wider careers services on offer. Outplacement firms are evolving to incorporate re-skilling, workforce mobility, internal redeployment, and leadership coaching into their offering.

Bespoke AI tools developed by outplacement services can be used to provide constructive feedback on resumes, including identifying skills gaps based on the analysis of resumes against job adverts. AI can also be used to write basic resumes and LinkedIn profiles, although human input is needed to avoid producing generic documents. 

Outplacement companies have now developed AI job-matching tools, enabling candidate resumes to be matched to open positions. This means that employees impacted by redundancy can pursue other activities, such as networking or interviewing, without missing out on spotting emerging opportunities. 

Of course, redundancy also presents the opportunity to change careers or pursue entrepreneurship. In those cases, AI tools can be used to suggest alternative career paths or recommend training courses to improve skills and employability. 

AI can also be valuable at the interview stage, with careers coaches using it to generate likely interview questions and model answers, before they work with individuals to practice responses and build confidence. 

During the pandemic, we saw how quickly life was able to move online, and outplacement was no exception. While a few providers offered partially online services before this, the fully virtual outplacement model became standard when the wider workforce gained confidence working online.

Virtual platforms are now firmly established and are benefitting both employers and employees. Employees can contact their career coach online, meeting virtually for career check-ins and accessing their local market expertise wherever in the world they’re looking for work. 

Previously, contact was confined to time-bound and geography-bound in-person meetings, but now jobseekers can log in to get support with their job search whenever it’s convenient for them. Tech-enabled outplacement solutions for outplacement participants include e-learning modules, webinars, digital careers resources, and job postings. 

Technology is also changing the employer’s experience of outplacement: businesses are now able to access real-time labour market insights, HR best practice, and data-driven analysis of outplacement services through their provider’s platform.

Employee wellbeing and outplacement are inextricably linked. A report by the Australian Government National Mental Health Commission notes that, “involuntary job loss is associated with decreased psychological and physical wellbeing” and that, “stigma associated with unemployment also contributes to poor mental health following redundancy”.

With mental health in the spotlight, outplacement services in Australia have an increasingly important role to play in supporting the wellbeing of those impacted by redundancy. 

That’s where the human connection comes in. While technology is increasing efficiency and expanding opportunities in some areas, it’s the human touch that makes the difference when the going gets tough. Businesses need to be seen as desirable places to work to protect their brand and attract talent, so it matters how they are perceived when redundancies loom large. 

Outplacement services that put people at the heart of what they do will increasingly be in demand in a future dominated by technology. Connecting impacted employees with empathetic coaches who truly listen, advise, and support is something that can’t be replicated by AI. 

Trained coaches can help employees affected by redundancy to process the job loss, rebuild their confidence, and provide emotional support throughout the job search process, in addition to providing practical help and guidance. 

Some outplacement services also offer financial planning tools, work-life balance support, and peer-group sessions as part of the employee wellbeing offer, further emphasising the growing focus on employee wellbeing.

Statistic: The Australian Institute of Health and Safety notes that, “the importance of supporting employee health and wellbeing has newly emerged as a top priority to increase talent availability over the 2025 – 2030 period, with 64% of employers now seeing promise in this approach”.

While this wellbeing support clearly benefits the employee, the business also benefits as it develops a reputation as a caring employer – one who lives their values and invests in its staff. And that pays dividends when it comes to attracting talent in the future. 

In addition to talent attraction, showing a commitment to employee welfare also supports talent retention, as staff surviving the layoff can see that the company is willing to invest in the wellbeing of its employees.

Where outplacement used to focus on supporting program participants into equivalent roles, the emphasis is transitioning to skills-based redeployment. Employers are now more focused on the skills a candidate can bring to the business, so outplacement firms are adapting to accommodate this. 

Statistic: TestGorilla notes that 85% of employers were using skills-based hiring in 2025, up from 81% in 2024, 73% in 2023 and 57% in 2022, demonstrating a clear upward trend.

By evaluating an employee’s existing skills, a career coach can work with them to identify opportunities they may not have considered before – whether that’s redeployment to another area of the business, a complete career change, or upskilling to remain current in the modern workplace. 

Outplacement companies are also offering adjacent services, such as career framework development and workforce planning tools which focus on skillsets rather than linear career pathways. These tools give employees greater visibility into potential career paths, whilst also supporting talent retention. 

With the need to prove ROI, outplacement is vital in today’s market. Businesses need to prove that engaging an outplacement partner is a sensible commercial decision. 

Outplacement success is measured in terms of participant engagement rates, time to landing, participant satisfaction rates, and placement rates. While these measurable outplacement results have been available for some time, as we move into the future, outplacement firms are offering real-time dashboards that enable clients to evaluate and benchmark the service at any point.

At Careerminds, we offer a single point of contact coupled with data-heavy insights, via a proprietary system that integrates seamlessly with your existing HRIS. 

The situation: Day & Zimmerman had 5,000 employees in multiple locations, including both in-office and remote staff, with a need to reduce the size of the workforce. The workforce had varying levels of experience with technology, meaning that some were finding it challenging to navigate the modern job market. They wanted to offer outplacement that met the needs of all their employees, regardless of location or technical literacy. A focus on compassion and practical support was a must. 

The solution: Day & Zimmerman chose to work with Careerminds. Their virtual outplacement model enabled transitioning employees to access services wherever they were located and to receive continuous support until they secured a new role. The one-to-one coaching ensured that every participant received guidance tailored to their needs and the online platform ensured they could access support 24 / 7.

The result: 88% of eligible Day & Zimmerman employees registered to use the service, with 100% landing new roles and a 100% participant satisfaction rate. The average landing time was 12.4 weeks – almost 3 times faster than the national average. The VP of Talent noted Careerminds’ commitment to supporting staff until they secured meaningful new positions and the importance of the virtual component.  

The future of outplacement balances technical innovation with the human touch. 

Here at Careerminds, we’ve been blending virtual platforms with people-centred support since 2009. We’ve always provided cutting-edge services and adapted to the latest developments in recruitment, job markets, and technology, and continue to do so.