How much does Redundancy Outplacement Cost?

How to Support Employees Through Redundancy Without Breaking the Bank

Making redundancies is never easy. In fact, calling it "difficult" is an understatement. For many small business owners, it's one of the most emotionally and professionally challenging tasks they'll ever face. No one starts a business to let people go, but sometimes it's unavoidable.

The good news? There's a way to handle redundancies with care, fairness, and professionalism—without it costing a fortune. This is where outplacement support comes in. Whether you run a small business, manage an SME, or are an HR professional guiding a company through change, providing employees with the right support can make a world of difference.

What is Outplacement and Why Does It Matter?

Outplacement is career support provided to employees who are being made redundant, helping them transition into new jobs. It's not just about rewriting a CV—it's about morale, confidence, and guidance.

For employees, redundancy can be devastating. It often triggers stress, uncertainty, and fear about the future, particularly if they've been in their role for a long time. Offering structured outplacement services helps them move forward faster, whether that's through CV reviews, job search strategies, or interview coaching.

But outplacement isn't just for employees—it also benefits small business owners. Redundancies, if handled poorly, can damage your employer brand, create unnecessary legal risks, and leave the remaining team feeling unsettled. Supporting people properly—even on a budget—protects your business reputation, workplace culture, and long-term hiring potential.

The Cost of Outplacement: Is It Worth It for SMEs?

One of the biggest concerns for small businesses is cost. Traditional outplacement services can be expensive, with prices ranging from £100 to £1,000 per employee depending on the level of support provided. While large corporations might have dedicated budgets for this, small businesses often don't. I personally offer pay as you go Redundancy / Outplacement Support. You can check it out here. 

But that doesn't mean you can't offer meaningful support. There are plenty of budget-friendly alternatives that still help employees transition into new roles, while also showing that you care. Even small gestures, like career workshops, personalised CV advice, or connecting employees with job opportunities in your network, can make a real impact.

Affordable Ways to Offer Redundancy Support

If hiring an outplacement provider isn't an option, consider offering low-cost or free support instead. Online career platforms like LinkedIn, Indeed, and Glassdoor are fantastic tools that help employees showcase their skills and apply for jobs. Offering guidance on how to optimise their profiles and make the most of job search features can go a long way.

Local career support services are another great option. Many communities have free job centres, workshops, or non-profit organisations that provide CV writing help, interview coaching, and career transition guidance. Pointing employees in the right direction and making them aware of these resources can be incredibly helpful.

If you have several employees facing redundancy, consider hosting a group session on job search strategies, personal branding, or interview techniques. This doesn't have to be formal—it could be a casual meeting where employees can ask questions, get advice, and feel supported. If you have an HR professional or a leadership coach in your network, they may be willing to run a short workshop in exchange for networking opportunities.

Another valuable option is peer support groups. Encouraging employees to stay connected, share job leads, and support each other through the transition can help maintain morale and reduce the isolation that often comes with job loss. Redundancy can feel deeply personal, but knowing others are in the same boat can provide reassurance and motivation.

What About the Employees Who Stay?

While redundancy support typically focuses on those leaving, it's just as important to consider the impact on those who remain. When colleagues leave under difficult circumstances, it can create uncertainty, stress, and even resentment among the team. Employees may worry about their own job security, feel disengaged, or lose trust in the company's leadership.

Being open and communicating clearly about the reasons for redundancies can help alleviate fears. Where possible, involving employees in support initiatives, such as career workshops or networking sessions, can create a sense of solidarity rather than division.

Recognising the emotional toll and offering reassurance about the company's future direction can make a significant difference. If the remaining employees see their former colleagues being treated fairly and supported through the transition, they're more likely to feel positive about their own role and the business as a whole.

The Long-Term Benefits of Offering Redundancy Support

It's easy to think of outplacement as an added expense, but in reality, it's an investment in your company's reputation and long-term success. Small businesses thrive on trust, word-of-mouth recommendations, and employer reputation. How you handle redundancies today could influence how future employees, clients, and partners perceive your business.

Offering even basic outplacement support can help prevent negative reviews, workplace resentment, or even legal issues. Employees who feel supported are far less likely to pursue grievances or leave damaging feedback. On the flip side, treating redundancies with empathy and professionalism can enhance your employer brand, making it easier to attract and retain top talent in the future.

Final Thoughts

Redundancy is tough—for business owners, HR professionals, and employees alike. But handling it the right way doesn't have to mean breaking the bank. Small businesses can provide meaningful, cost-effective outplacement support through career advice, free resources, and thoughtful communication.

By treating employees with care and respect, you not only help them land on their feet but also strengthen your business reputation, culture, and future hiring prospects. Supporting people through career transitions—whether that's through outplacement services, job search coaching, or simply pointing them toward the right resources—isn't just a nice thing to do. It's the right thing to do.

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