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Outplacement

From redundancy to reinvention: modern outplacement strategies for the Australian workforce

May 26, 2026 Written by Jen David

Outplacement

Modern outplacement strategies offer holistic career development that goes way beyond traditional redundancy support. From simple resume and job search services, outplacement has evolved into a strategic choice, offering support to HR teams with services such as skills development, redeployment, and career coaching. Businesses enjoy measurable ROI, brand protection, and employee engagement.

What is strategic outplacement?

In essence, strategic outplacement is a modern form of outplacement that supports both staff and the business by acting as a career transition partner to the company. 

Originally, outplacement was simply a way for businesses to support retrenched employees into new roles. It provided resume and interview support, as well as job search and career guidance, to enable workers impacted by redundancy to mitigate the impact of job loss. 

These days, however, outplacement has evolved to become a strategic tool for businesses. Organisations recognise that redundancy has an impact not just on those exiting the business, but also those that remain, and the future success of the business as a whole. 

Outplacement now takes into account the legal and financial implications of workforce downsizing, supports retained staff to maintain productivity and morale, and protects the company brand by positioning the company as an ethical employer. 

Modern outplacement also uses technology to deliver enhanced services. Coaches can meet with program participants virtually, enabling personalised services accessed from anywhere in the world, and participants benefit from online resources such as tutorials and job boards, which are available 24 / 7. 

Outplacement has moved away from a generic model to support remote, hybrid, on-site, contract, and international employees. Programs can also be tailored to match the seniority of each employee. 

This evolution of outplacement services makes them a strategic business decision that delivers ROI, where previously it was an additional benefit. 

An example of strategic outplacement

Entergy partnered with Careerminds when they were planning to close a power plant. Coaches worked with program participants to match them to alternative roles within the company by assessing their skills, identifying relevant roles, and supporting the transition. Participants were also offered the chance to reskill or upskill. 

Every program participant found a new position within the Entergy business and no employee was displaced. By working with an outplacement provider, Entergy was able to redeploy impacted staff, avoiding redundancies and retaining valuable company knowledge within the business. They also showed themselves to be a people-first employer, enabling them to attract talent in the future, and avoided tarnishing their corporate brand. 

The strategic value of outplacement services

No longer simply a service for employees during workforce downsizing, modern outplacement is now a recognised business strategy that reflects organisational values and ensures responsible, ethical workforce management. 

Modern outplacement strategies enable employers and employees alike to thrive by offering: 

Brand reputation protection

Companies spend years building their brand. But it’s much quicker to destroy a reputation than to build one, and employees who feel poorly treated can do significant damage – especially if their story is picked up on social media or in the press. Modern outplacement strategies seek to minimise the potential for reputational damage by giving employees a positive experience at a difficult time.

Case study:
Commonwealth Bank faced negative press reports after it announced 45 job cuts in 2025. Having replaced some customer service roles with an AI voice-bot, it later discovered that the roles were not actually redundant as work increased. The company was forced to reverse the decision following a Fair Work Commission dispute. The Finance Sector Union noted that, “the damage is already done” and said the Commonwealth Bank had been, “caught out trying to dress up job cuts as innovation”. Working with an outplacement service can help to avoid this kind of bad press.  

Talent attraction

Linked to employer branding is talent attraction. A business that is seen to treat its employees well, during good times and bad, is positioning itself to attract the brightest talent for future vacancies. In difficult job markets and economies, a stable job is more desirable than ever and a company that helps employees to weather storms is seen as a safe bet. 

Statistical insight:
Companies with a strong employer brand see 50% more qualified applicants and hire 1-2x faster.

Employee wellbeing

Whether an employee survives a redundancy process or not, the mental load during the selection process and beyond can’t be discounted. Unplanned change, financial stress, and job security can weigh heavy, leading to absenteeism, reduced productivity, and low morale. Modern outplacement strategies include holistic services that provide emotional support as well as practical advice.

Research findings:
A 2026 report notes that, “job loss has profound adverse effects on subjective wellbeing and mental health”. It also finds that, “job loss is associated with lowered mental health in the quarters leading up to redundancy, regardless of whether individuals explicitly anticipate the event… and re-employment emerges as the most prominent factor associated with mental health recovery”. 

Talent retention

The uncertainty during workforce change and downsizing can mean that employees no longer feel secure in their jobs. Even employees that aren’t being retrenched may start to look for jobs elsewhere, to safeguard their careers and financial futures. Strategic outplacement ensures that all employees can see that impacted staff are supported into meaningful new roles, improving talent retention well into the future.

Statistical insight:
To prepare for possible redundancy, 49% of workers are pursuing further training to improve their marketability, while 45% are passively looking for a new job.

Employee productivity

At times of change, employees have more on their mind than just meeting targets. Will they have a job next week? Can they still pay the bills? What about the loss of identity and self-respect? It’s natural that minds stray from the job in hand, disengagement increases, and productivity takes a hit. And it’s not just those losing their jobs that are affected – survivors feel the effects too. 

Modern outplacement strategies recognise this. Comprehensive job search support, covering reskilling, upskilling, and internal redeployment, can allay some of those fears and keep all staff, whether impacted or not, focused on maintaining business as usual. 

Statistical insight:
A 2025 study found that moderate to high psychological distress adversely affected employees’ job productivity

An outplacement provider can work with a company to ensure that their redundancy process is legally compliant and can help to reduce risk arising from unfair dismissal complaints and grievances. 

Additionally, modern outplacement strategies, such as redeployment and career transition support, help businesses show that they meet the Fair Work rule that, “an employer can apply to the Fair Work Commission to have the amount of redundancy pay reduced if the employer finds other acceptable employment for the employee”.

Statistical insight:
14,772 unfair dismissal applications were lodged in 2023 / 2024. 

Internal redeployment

Redundancies in one area of the business can actually support recruitment and growth within other areas. Whether staff can make a direct transition or require support with reskilling or upskilling first, valuable institutional knowledge is retained and the need for redundancy is reduced or eliminated altogether. Modern outplacement strategies identify needs across the wider business and work to match retrenched staff to vacancies. 

Case study:
An employee of Boral Window Systems was made redundant after his role was outsourced to save costs. He argued that he could have been redeployed within the same factory or elsewhere. The Fair Work Commission found that redeployment could have been accommodated and the dismissal was not a genuine redundancy. Working with an outplacement company would have ensured that the employee was considered for all relevant internal positions, with additional training if needed. What actually happened was that the employee launched an unfair dismissal application and the company lost its automatic protection against these claims.

Career growth

Outplacement is no longer there just to support redundancies. Modern outplacement strategies include career development, with services such as leadership coaching, skills development, and executive coaching. Partnering with an outplacement company provides strategic business support in both good times and bad. 

Case study:
GeoBlue invested in a leadership and career development program to develop their high-potential employees. As a medium-sized company, they didn’t have the resources to provide this themselves, so they partnered with Careerminds, citing the company’s ability to customise the program to meet their needs. 

Change management

Having an outplacement strategy in place strengthens a company’s ability to handle major change such as mergers, acquisitions, or restructures. Partnering with an outplacement firm ahead of time means rapid mobilisation when the potential for change becomes a reality. Business leaders and employees alike will appreciate being presented with solutions, rather than problems.

Statistical insight:
GeoBlue invested in a leadership and career development program to develop their high-potential employees. As a medium-sized company, they didn’t have the resources to provide this themselves, so they partnered with Careerminds, citing the company’s ability to customise the program to meet their needs. 

Traditional outplacement vs strategic outplacement

Proactive vs reactive services

In the past, outplacement services were only brought in as a reaction to redundancy. They were entirely focused on transitioning newly redundant staff into new roles as quickly as possible. 

Modern outplacement strategies mean that outplacement is now a proactive service, with outplacement partners working alongside businesses to go beyond the knee-jerk services of old. The focus is now on outplacement as a strategy, rather than on outplacement as a one-off requirement. 

Redundancy support vs holistic career support

Modern outplacement providers offer so much more than redundancy support. Originally stepping in at the redundancy stage, services revolved around resume writing, LinkedIn optimisation, interview prep, and job search strategy. 

Now, providers work with businesses throughout the full employee lifecycle. As well as impacting attraction and retention with traditional outplacement services, providers also offer guidance with career frameworks, redeployment, skills development, and leadership coaching. 

Personalised vs one-size-fits-all

Where coaching used to be delivered on site and in group settings, technology now allows for bespoke services. From virtual coaching to online resources, individuals can access services tailored to their personal needs. 

The same goes for businesses – with expanded career services available, companies can pick the provider and the services that best fit the needs of their specific business model and industry. 

Cost vs ROI

Previously a cost to employers who wanted to do right by their people, outplacement is now a strategic investment that delivers measurable ROI. Outplacement firms can offer statistics dashboards, enabling executives and HR teams to see the impact of their investment in real-time.

How businesses can stand out in today’s job market 

When candidates have a choice of employers, businesses need to stand out to attract and retain the best talent. Those that embrace modern outplacement strategies signal that they value people. 

No-one wants to be just another number on the HR payroll. An outplacement strategy is a sign of an ethical, people-first business, and a key differentiator showing potential employees that their career is in safe hands. 

Final thoughts on modern outplacement strategies

Modern outplacement strategies drive trust, productivity, and brand positioning. Partnering with an outplacement provider enables organisations to successfully navigate workforce changes and puts employees and the business in a strong position for the future. 

Careerminds has been at the cutting edge of outplacement since 2008. Find out if we’re the right outplacement partner for your business by contacting our experts today.

Jen David

Jen David

Jen David is the Director of Word Dragon. She has been writing CVs since 2010 and is a certified CV Writer. She has worked with clients in numerous industries and at all stages of their careers, from students through to senior executives of global businesses. She loves producing polished, focused CVs, enabling her clients to take the next step in their careers. Jen has written numerous articles for publication on industry-leading job boards.

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