Severance Beyond Paychecks: What Today’s Transition Packages Must Include

In the not-so-distant past, severance was a handshake, a check, and little else. The prevailing belief was that financial compensation alone was enough to ease the blow of a layoff. But in 2025, that thinking is outdated—and the numbers prove it.

According to our recent Careerminds 2025 report Improving Career Transition Support, 82% of US companies now include career transition services in their severance packages. This is undoubtedly a significant shift from the “check and goodbye” era.

In this article, we’ll explore our report’s findings to understand why career transition services are more than merely a perk, and are now seen as essential to protecting employer brand, maintaining morale, and enabling smoother reemployment for departing staff.

A modern severance package shouldn’t be treated as a line item in your budget. It’s a multi-faceted strategy combining financial support with a suite of services designed to help people transition into their next chapter with confidence. Individuals increasingly value transparency, so the quality of these packages has become a direct reflection of an employer’s values.

Based on our latest research, the vast majority of organizations have moved beyond cash-only approaches:

• 82% now include career transition services in their severance packages.
• 69% offer career coaching.
• 64% provide job search help.
• 73% include four to five different types of transition support.
• Larger organizations (63%) are more likely to offer five or more services.

These numbers show a clear benchmark: Today, competitive severance blends financial stability with career mobility. The most effective severance packages will provide departing employees with not only a financial runway, but also the tools, connections, and guidance that will help individuals land meaningful new jobs as quickly and effectively as possible.

These are the most common elements of a competitive severance package:

• Career coaching: Personalized, one-on-one guidance for navigating the job market, exploring career pivots, and identifying opportunities that align with individual skills and aspirations.
• Resume and LinkedIn profile optimization: Professional branding support to ensure that candidates are market-ready and will stand out to recruiters and hiring managers.
• Job search and networking tools: Access to premium job boards, curated employer introductions, and structured networking opportunities that shorten the job hunt.
• Skills training or reskilling programs: Courses and certifications that close in-demand skill gaps and position employees for roles in emerging sectors.
• Financial advisory services: Support in managing severance pay, budgeting during unemployment, and making informed benefits and retirement decisions.

These services serve both the employee and the organization. Providing tangible, future-focused support sends a clear message to both departing and remaining staff: “We value people beyond their last day.” That message protects morale, reduces brand risk, and strengthens alumni relationships, translating into faster rehires, stronger referrals, and even customer goodwill.

When organizations treat offboarding with the same strategic attention as onboarding, they turn a potentially negative moment into an opportunity to reinforce trust and demonstrate corporate responsibility.

Want to see the full report? Click below to download our 2025 report Improving Career Transition Support with relevant data, insights, and strategies to guide your next workforce decision with confidence.

Basic Package:	Strategic Package:
Lump-sum payment	Lump-sum payment
Minimal HR guidance	Dedicated career coach
Generic job listings	Tailored job-matching services
No resume support	Resume and LinkedIn optimization
No skills support	Training and reskilling programs
No follow-up	Ongoing placement tracking

The gap between a severance-only approach and a comprehensive career transition program will also result in different outcomes, brand perception, and long-term relationships. Organizations that provide only financial compensation risk slower reemployment, lower morale, and brand damage, while those offering transition support see faster placements and stronger alumni loyalty.

• Cash payment, often with minimal HR guidance.
• Slower reemployment rates for departing staff.
• Greater risk to the employer brand if alumni share negative experiences.
• Lower survivor morale, leading to disengagement and potential turnover.

• Resume help, career coaching, job boards, and networking opportunities.
• Faster time-to-employment for exiting employees.
• Boost in employer brand reputation.
• Improved rehire rates for alumni.
• Smoother exits that protect both morale and productivity.

As one HR leader put it, “Employees are guided toward meaningful careers, not just immediate jobs.” That guidance makes all the difference for both the individual and the organization.

Some companies attempt to manage transition services in-house, and a few of them even succeed in doing so. However, most organizations see greater value in partnering with specialized providers—and the reasons are compelling. Outsourcing allows organizations to tap into expertise, technology, and networks they may not have access to internally. 

For example, top-tier providers offer access to national and international job boards, advanced skills assessment tools, and certified coaches who work across industries. This depth of specialization ensures that departing employees receive guidance tailored to their career level, function, and industry instead of a one-size-fits-all program.

Respondents in our 2025 report say that the key operational benefits of outsourcing are:

• Reduced HR workload (44%)
• Lower compliance risk (34%)
• Cost savings compared to in-house programs (32%)

Another advantage is scalability. Layoffs often happen in waves or across multiple regions, requiring consistent delivery of high-quality support at speed. Outsourced providers can scale up instantly—deploying more coaches, adding digital resources, or tailoring services for different geographies and industries.

There’s also a brand protection factor. When your organization partners with a trusted, well-known outplacement provider, you signal to both employees and the public that you take workforce transitions seriously. You’ll show care, fairness, and a commitment to helping people land on their feet, which also strengthens alumni networks and improves future talent attraction.

HR leaders shouldn’t see outsourcing as a way to “do more with less.” It’s a way to ensure that every departing employee receives best-in-class support while the internal team stays focused on guiding workplace changes, managing remaining staff, and protecting productivity.

When evaluating your current severance offering, do you have a clear, structured approach to identifying gaps and opportunities? If not, a scorecard will come in handy. Use this tool to measure your offered packages against market benchmarks and organizational goals.

These should be the core questions in your severance scorecard:

1. Do we offer resume and LinkedIn support? This is one of the most frequently outsourced services for a reason, since it directly impacts how quickly alumni re-enter the job market.
2. Do we track rehire or placement metrics for alumni? Without tracking, it’s impossible to measure ROI or prove the program’s business impact.
3. How many types of support do we provide? Are they tailored? Research shows that 73% of companies offer four to five different transition services, often customized to the employee level.
4. Do we rely solely on internal HR, or do we partner with trusted vendors? Outsourcing these services brings greater scalability, quality, and operational relief.
5. Are we proactive about reducing brand risk during offboarding? This means managing messaging, maintaining goodwill, and ensuring consistent treatment.
6. Do our packages include both financial and career transition elements? A severance check alone no longer meets today’s workforce expectations.

From there, assign a simple scoring system (e.g., 1–5) to each question. Severance packages that consistently score 4 or higher are competitive; those that don’t are vulnerable to brand and retention risks.

Beyond being a benchmark against competitors, a strategic severance scorecard aligns offboarding with broader business priorities, from protecting employer brand to supporting talent pipelines. It can also be a helpful tool when building a case for expanding services or partnering with an external provider like Careerminds.

Make no mistake, people still value a nice, generous severance pay. However, cash alone isn’t enough. In an employment market where brand perception, alumni networks, and retention are closely linked, modern severance packages must go beyond paychecks. Career transition support isn’t charity—it’s strategy.

By investing in outplacement services, you will:

• Help employees land faster, better jobs.
• Protect your brand and strengthen alumni loyalty.
• Reduce legal and operational risks.
• Support internal morale and retention.

No one forgets a layoff. Just ensure that it’s for the right reasons.

If you want to see all of the insights from our recent research, click here to download the full Careerminds 2025 report Improving Career Transition Support. With that, you’ll access the complete stats and strategies to guide your next workforce decision with confidence.

Here at Careerminds, we specialize in comprehensive, results-driven outplacement programs that meet workforce expectations and deliver measurable business benefits. If you want to learn more about our modern, industry-leading approach to outplacement services, click below to speak with one of our experts today.