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From Redundancy To Reinvention: Why Outplacement Needs A Rethink

by | Jun 26, 2025 | City CV Blog

Redundancy is never just a business decision; it’s a human experience. But since the dawn of the 9-5, outplacement has sat at the bottom of the corporate priority list. Despite all the process flows and polite phrases surrounding it, the emotional and professional whiplash of job loss is still being flattened into a line item, an optional extra that’s been boxed into the final chapter of a restructure.

If you still harbour that mindset, you’ll soon find out (the hard way) that it’s increasingly out of step with the world we’re now operating in. Outplacement must go beyond job loss to prioritise opportunity, growth and empowering people. 

If businesses take just a second to reimagine how they support departing team members, they’ll discover that what looks like an ending can become one of the most transformative moments in someone’s future, and in their own culture.

From people management to people care

We’re living in a world where careers aren’t linear and loyalty isn’t a lifetime contract. And in this world, people expect employers to take their futures seriously, especially when times get tough. 

At City CV, we’re seeing a profound shift: individuals are no longer waiting for outplacement to be handed to them. They’re asking for it, sourcing it themselves, and treating it as an investment in their future rather than a compensation package. Importantly, people aren’t just finding any job after redundancy, or seeking out another version of what they just lost. They’re often seeking different kinds of roles and lifestyles. Redundancy can spur a period of self-discovery, leading individuals to prioritise work that aligns with their values, skills and preferred balance.

As an outplacement provider, we see the need for change – for outplacement to go from people management to people care. Hundreds of the professionals we’ve worked with have walked away from ‘safe’ roles to launch businesses, switch industries, or even pivot into something more flexible, like fractional consulting. One clear trend we’re seeing, for example, is a boom in entrepreneurship driven by redundancies: 24% of new UK start-ups in 2025 were founded because the entrepreneur had lost their job.

The most crucial thing to note here is that these individuals aren’t outliers. They represent a growing wave of talent using redundancy as a reset button. What matters to them isn’t help with a shallow job search, nor is it sympathy, necessarily. More than anything else, they’re looking for strategy and self-discovery. 

A new brief for businesses: Support reinvention, not replacement

SMEs are uniquely placed to lead this change. You don’t need to wait for a formal HR process to show care, or a one-size-fits-all programme that treats your people like an exit stat. What you need is to centre outplacement around reinvention.

Employers should be offering coaching that’s focused less on job-seeking tips and more on future career mapping or career transition. Help people articulate not just what they’ve done, but what they want next. The goal should be to instill confidence, rebuild identity and reignite ambition.

This is where many traditional outplacement programmes fall short. They offer templates when what people need are tools, a space to reflect, and the kind of strategic thinking that’s usually reserved for new hires or leadership development.

Building a reinvention toolkit 

The future of outplacement is personalised, not packaged. CV templates and job board links, while helpful, won’t be enough in a market shaped by AI disruption, portfolio careers and hybrid everything. 

People want tailored support. They want advisors who know their industry, and understand ambition, their working style. They want to know how to navigate LinkedIn, yes – but also how to rebrand their professional identity, or position a career pivot, or walk into a negotiation with confidence. Increasingly, they don’t want this support at the point of crisis. They want it as part of an ongoing career strategy. That’s the space outplacement now needs to occupy. Less fire extinguisher, more fuel tank.

To support people through meaningful career reinvention, and help them achieve their personal growth potential (beyond simply finding a new job), you need to build a framework for it. That means moving beyond the legal letters, the handovers, the payroll, and start sitting where the real work is.

There are four important questions you need to ask:

1. Who’s responsible for guiding the individual through their next steps?

The responsibility can’t just fall on HR. Reinvention isn’t an internal policy but a personal journey. Assign an independent coach or trusted external partner who can support that transition without bias or bureaucracy.

2. Are you offering time or tasks?

Avoid dropping a list of job boards and calling it a day. Give people the breathing space to reflect, such as by offering optional workshops that encourage exploration. Think values alignment, career mapping or personal brand storytelling.

3. Is the support modular?

Reinvention looks different for everyone. Some will want interview prep while others will want to learn how to start a consultancy or go freelance. Build in choice. Make the programme flexible, not prescriptive.

4. Are you treating outplacement like a checklist or a catalyst?

If it’s the former, you’re capping its value. You need to encourage feedback if you want to make the support two-way. And you should want to, because to support someone’s reinvention is not to give them a pat on the back; it’s to be a genuine partner in their next chapter.

Outplacement needs to work to protect the business and empower the individuals. It works when it’s built to empower the individual. Start there, and you will build more than goodwill. You will build something that lasts, for your business and your people. 

The future of outplacement looks a lot more human 

Redundancy isn’t a failure. It’s feedback, a redirection. When handled well, it can unlock more potential than it ever took away. 

At City CV, we’ve been championing the art of outplacement for years. We’ve seen the transformative impact it has when it’s thoughtful and human, and we’ve seen the damage it can do when it’s rushed and impersonal. 

It’s time to move away from terms like “outplacement” and “redundancy”, and start seeing this as a moment for reinvention and transition, a strategic act of care, where people are kept at the heart of the framework. That’s how we do it at City CV – and we’re now challenging businesses of every shape and size to join us.

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