Reverse Recruiting vs Outplacement

Outplacement is bought by your former employer as part of a severance package and mostly provides coaching, workshops and tools. Reverse Recruiting is bought by you, and the provider does the search work itself; the two can be combined.

Who buys decides what is delivered

Outplacement is a career transition service that an employer buys for people it is letting go. It usually arrives as one line in a severance package. The employer selects the provider, the level of package and the length of support, and it does so for its own good reasons: to treat departing staff decently and to make an exit orderly. You use the service, but you did not choose it and you are not the buyer.

Reverse Recruiting is bought by the individual. You choose the provider, you agree the scope in writing, and the practitioner's duty runs to you and to nobody else. The definition is on What is Reverse Recruiting?: executive search run for the candidate instead of the employer.

What outplacement usually provides

A typical programme offers coaching sessions, help with your résumé and LinkedIn profile, workshops or webinars on job search technique, and access to online tools and job listings, all for a fixed period.

The common thread is that outplacement prepares you to run your own search. It advises, teaches and equips. In most programmes nobody contacts companies or search firms on your behalf, although that is worth checking, because programmes differ. The research, the approaches and the follow-up remain your work between sessions.

You will also see the phrase "career transition services". For the most part it is the name outplacement providers give to the same offer. It is sometimes used by firms that sell to individuals as well, so ask two questions of anything carrying that label: who is paying, and who does the outreach.

What Reverse Recruiting provides

A reverse recruiter runs the search. Under the NRRA Standard Process, set out in How Reverse Recruiting works, the engagement moves through a written strategy, positioning and documents, market mapping, a campaign of outreach in your name with a written weekly pipeline report, interview preparation, and offer evaluation and negotiation support. What does a reverse recruiter do? describes the work in detail.

Reverse Recruiting vs career coaching draws the same line: advice on one side, execution on the other.

Side by side

Is outplacement worth it for executives?

It is worth using, because it has already been paid for and costs you nothing further. In the first weeks after an exit it gives structure, a sounding board and a place to rebuild your documents.

Its limits come from its design. A programme is built to the employer's budget and is often delivered to many leavers at once, so the materials tend to be general and individual outreach is rarely included. At senior level that matters, because many senior roles are filled without ever being advertised, through search firms, networks and direct conversation. Reaching them takes approaches to named people, and that is the part most programmes leave to you.

So outplacement is a useful benefit and seldom a complete search for a senior leader. Use it for what it does well, and decide separately who will run the outreach.

Using both together

The two combine well when the target is clear. Let the outplacement coach help you settle direction and practise interviews. Let the reverse recruiter build the target list, make the approaches and manage the pipeline. Tell each about the other, so that you end up with one set of documents and one account of your story.

If the outplacement programme has already produced a strong résumé, a reverse recruiter may adapt it as a working asset and not start again. Whether a retained search justifies its fee in your case is a separate question, covered in Is Reverse Recruiting worth it?.

Redirecting the outplacement budget

Some employers will agree to redirect an outplacement budget to a provider of the leaver's choice, or to settle the allowance in another form. This is a possibility, not a norm the handbook can put a number on. It depends on the employer's policy and on what is being offered to you.

If it matters to you, raise it during severance negotiation, while the terms are still open. Ask plainly whether the outplacement element can be applied to a provider you select. Severance terms, and their tax treatment, are governed by rules that differ by country and state, so check locally and take advice before you agree to anything. The handbook does not give legal advice.

Timing and fees

Outplacement begins after your exit is agreed. Reverse Recruiting can begin earlier, while you are still employed, which lets you start a search before a restructuring reaches you. How long does Reverse Recruiting take? covers the timeline, and How much does Reverse Recruiting cost? covers the fee models.

This handbook is published by the National Reverse Recruiter Association (NRRA). Under the NRRA Code of Ethics the fee is never a percentage of your salary, and nothing is due when you accept a position.

What to ask a provider

Of the outplacement provider:

• What exactly is in my package, and how long does it last?
• Will anyone contact companies or search firms on my behalf?
• What, if anything, is reported to my former employer about my use of the programme?

Of a reverse recruiter:

• Who makes the approaches, and in whose name?
• Can I see the pipeline, and how often is it reported to me?
• Is the fee flat and agreed in writing, with nothing due when I accept a position?
• Do you work to the NRRA Standard Process and Code of Ethics?

Frequently Asked Questions

Is outplacement the same as career transition services?

Largely, yes. Career transition services is the name many outplacement providers use for employer-paid support given to departing staff. The phrase is also used by some firms that sell directly to individuals, so it does not tell you who the buyer is. Ask who is paying for the service and whether anyone will contact employers on your behalf.

Does an outplacement firm find you a job?

Usually not. Most outplacement programmes coach you, help with documents and give you tools and listings, and you run the search yourself. Programmes differ, so ask whether anyone will contact companies or search firms on your behalf and how that work would be reported to you. If nobody will, the outreach is yours to do or to delegate.

Can I choose my own outplacement provider?

Sometimes. The employer normally selects the provider, but some employers will agree to fund a provider of the leaver's choice if asked. It is a point to raise during severance negotiation, before the terms are settled. Rules on severance differ by country and state, so check locally and take advice on your own agreement.

Can I use Reverse Recruiting while I am on an outplacement programme?

Yes. They do different work, so they rarely conflict. The outplacement coach can help with direction and interview practice while a reverse recruiter builds the target list, makes approaches in your name and manages the pipeline. Tell each provider about the other and settle on one set of documents so the market hears a single, consistent story.

Related: How to Become a Reverse Recruiter · Reverse Recruiting, Reverse Hiring, Reverse Headhunting · Reverse Recruiter vs Job Application Service · Reverse Recruiter vs Headhunter: What Is the Difference? · Reverse Recruiter Near Me: Does Location Matter? · Glossary