What is the strategic purpose of providing outplacement services during a RIF?

• A. To increase severance costs.
• B. To identify who to lay off.
• C. To help terminated employees find new jobs quickly, reducing the company's unemployment tax burden and protecting its Employer Brand.
• D. To extend non-compete periods.

Answer: (C)

Outplacement during a RIF is about smoothing the transition for departing employees by helping them find new jobs quickly, while protecting the employer’s brand and cost position. When former staff members secure new roles sooner, unemployment claims and related tax burdens can be reduced, and the company is seen as responsible and supportive, which preserves Employer Brand and trust among remaining employees and stakeholders. This combination—speedier reemployment for those exiting and a positive external image—captures the strategic value of providing outplacement.

This isn’t about increasing severance costs, identifying who should be laid off, or extending non-compete periods. Those actions relate to planning, enforcement, or legal constraints rather than supporting transition and reputation during a RIF.