The Human Touch Still Matters: Why Personalised Support Outweighs AI in Outplacement

Artificial intelligence (AI) is upending nearly every aspect of work, and to keep pace with this new reality, HR leaders are turning to digital platforms to streamline outplacement. Increasingly, employers are offering automated resume optimization, AI-driven job matching, virtual training tools, and other digital solutions to laid-off employees.

That said, layoffs are charged with emotion and uncertainty, and individuals still need—and expect—personalized, human-led support. Organizations also value this empathetic approach, as it helps preserve trust and productivity. Those assumptions aren’t based on instinct or guesswork; they’re backed by data from our Careerminds 2025 reports on Improving Career Transition Support and The Career Transition Support Index.

The message is clear: Technology alone isn’t enough.

This article draws on the findings from these 2025 reports to examine the tension between automation and empathy in outplacement. We’ll explore why the human touch is still key to sustaining culture, reputation, and business continuity—even when AI drives never-before-seen scale and efficiency.

Before we jump into the importance of the human touch in outplacement, let’s discuss the overall benefits of comprehensive career transition support for both employees and employers.

Even if unpleasant, layoffs are a reality for employees all across the US. Almost two-thirds (61%) of the companies surveyed for our 2025 reports carried out layoffs in the last two years. Among the remaining companies, more than half (52%) stated that they’re likely to conduct layoffs within the next 24 months.

As we know, layoff events can be traumatic for both departing and surviving employees. If not supported, laid-off workers could suffer economic strain and severe mental health issues, while the company could see a hit to its reputation. 

For the individuals who stay, survivor’s syndrome can set in with a sense of guilt that can cause a loss of morale, trust, and productivity.

Mastering career transition is fundamental to mitigating these issues. For companies, having a strong outplacement strategy helps them recruit and retain top talent, preserve brand equity, and maintain productivity. Exiting employees will find it easier to land new jobs, and those staying will be more confident in the company’s commitment to ethical workforce management.

Unsurprisingly, 98% of the organizations we surveyed say that structured transition programs have a positive impact on employee satisfaction. 50% of respondents also noted an uplift in employer brand, while 38% reported improvements in post-layoff productivity.

As with so many other aspects of work, AI and digital platforms are bringing unprecedented speed, scale, and data-driven insights to the outplacement process. More businesses are adopting digital tools that optimize resumes, help with job searching, and even simulate mock interviews—freeing up their HR teams to focus on more strategic work.

AI-powered tools and automated solutions can be very beneficial to individuals as well. These platforms allow workers to follow offboarding steps and participate in learning journeys at their own pace. Additionally, participants who are less at ease with new technologies can develop digital literacy and gain confidence in those tools, strengthening their competitiveness in the job market.

This digital transformation is here to stay, and with the rapidly evolving nature of technology—and AI in particular—there is certain to be even more efficiency and opportunity in the future. 

In fact, most companies surveyed for our 2025 reports say that they plan to increase the use of AI-powered tools in their career transition offerings, as illustrated by these respondents’ quotes:

• “We will provide more types of mock interviews powered by AI to help prepare our employees.”
• “We will use better AI-powered tools to personalize job matching and provide more data-driven insights.”
• “Digital platforms will grow from basic job search tools to advanced career development.”

While AI drives efficiency for companies and brings convenience to individuals, it’s no substitute for in-person support. At best, it’s an excellent complement to a people-first approach for career transition support. 

After all, in their current state, digital outplacement tools can guide participants through the process, but only real people have the power to empathize and reassure. This is how your organization can make employees feel as if they’re valued, rather than being processed through a system.

Some quotes extracted from our 2025 survey also suggest that the human touch won’t be lost in future strategies. This is what respondents had to say about their upcoming outplacement offerings:

• “We might provide more personalized coaching to help employees in their job search.”
• “Career coaching will be tailored to individual needs, shifting from a generic approach.”
• “Outplacement processes will provide more extensive emotional and psychological support.”

However, companies still face hurdles to fully adopt this human approach. Our Career Transition Support Index shows that only 10% of managers receive advanced training on conducting layoff conversations. 

What’s more, most companies believe that their career transition support offer is “advanced” (74%), but not “fully developed.” These numbers show that there’s still room for improvement, and the human aspect of career transition support could certainly benefit from it.

If you’re preparing a layoff event, click below to download our full Careerminds report on Improving Career Transition Support with data, insights, and guidance to help you navigate your next layoff in a professional and empathetic manner.

As described in our report on Improving Career Transition Support, severance packages are another indication that companies recognize the importance of the human touch in career transition support.

This seems to be a new approach to severance, which was traditionally viewed as a financial safeguard for departing employees during layoffs. 

Today, organizations recognize that cash-only packages fail to address the emotional and professional impact of job loss. So they’ve begun including additional services like well-being resources, reskilling training, and networking opportunities.

Delivering high-quality, personalized career transition support is resource-intensive. Many HR teams already face heavy workloads, making it difficult to provide consistent, empathetic services in-house. This is why outsourcing has become standard practice in outplacement.

It’s clear that, by having external partners, companies are able to provide better career transition support offerings. This includes an improvement in the “human touch” aspect of those services, since outsourced specialists have the experience to understand the importance of empathy in those scenarios.

This makes outsourcing more than just a cost-efficient way of dealing with outplacement. While 31% of respondents say cutting costs is the key reason for seeking third-party help, this approach also boosts personalization and ensures that departing employees have a dignified transition.

AI and digital platforms will continue to reshape the future of work—including outplacement. But our 2025 reports on Improving Career Transition Support and The Career Transition Support Index prove that personalized, human-led support remains the cornerstone of effective career transition strategies.

While modern HR leaders will surely embrace technology for its efficiency and scale, they must always maintain the human touch. Algorithms alone can’t protect trust, morale, and brand reputation when layoffs occur. Empathy, personalization, and communication should still be at the center of any career transition support strategy.

If you want to access all of the stats and insights from our crucial cross-industry research, click here to download our full 2025 Careerminds reports on Improving Career Transition Support and The Career Transition Support Index.

You can also click below to connect with our Careerminds experts to learn about our data-driven, people-first approach to outplacement and see why we may be just the partner you need.