Top Outplacement Trends for 2025: Technology Enabling Human Touch

Key Trends at a Glance

• Economic Shift and Job Realignment: Low unemployment masks deeper challenges as roles transform and skill gaps widen.
• AI Coaching Experiments: AI offers scalability and consistency but cannot replace human empathy and connection.
• The Hidden Job Market: Most jobs are filled through networks, making visibility and relationships key for success.
• Internal Mobility Challenges: Redeployment and mobility will be essential to maintaining employer brand in organizations undergoing significant change.
• Scalable Human-Centered Solutions: Tools must evolve to combine technology’s efficiency with the human touch.

At LHH, we believe the outplacement industry will continue to evolve in 2025. While advancements in AI and digital tools dominate the conversation, the need for human connection remains critical in supporting individuals through career transitions. Drawing from our insights and client experiences, here are the biggest trends we see shaping outplacement in the year ahead.

1. A Potential Economic Shift and Job Realignment

Layoffs and workforce shifts are expected to continue in 2025 at a similar rate to 2024. Workers affected by these shifts will require pivoting to new sustainable career paths, so while unemployment remains low, it can still be difficult to find a job.

This paradox reflects a realignment of skills and opportunities. Many roles are disappearing or transforming, leaving workers unprepared for emerging positions. Job seekers face challenges navigating this evolving landscape, leading to underemployment and frustration.

Individuals need to adapt, reskill, and reposition themselves for changing roles. Outplacement solutions must address not just practical job-seeking strategies but also the emotional and identity-based struggles of career transition.

2. AI Coaching Experiments Begin to Take Center Stage

While AI-based coaching may not fully mature in 2025, we expect significant experimentation.

• AI Advantages: AI tools can integrate and iterate across coaching methodologies—from cognitive behavioral therapy to career advice—adapting in real-time to individual needs. Unlike human coaches, AI draws from vast and evolving knowledge to provide consistent, reliable guidance at scale.


• The Human Element: However, AI cannot replace the empathy, trust, and motivation provided by human coaches. Career transitions are deeply emotional events. A skilled coach can offer validation and support during this critical time in a way technology cannot replicate.

The future of outplacement will likely combine AI’s scalability with human-centered coaching, ensuring job seekers receive both practical advice and emotional support.

3. The Hidden Job Market Remains Key

Despite advancements in job platforms, only 20% of roles are filled through postings. Most jobs are secured via personal connections and referrals in the hidden job market.

Many positions are created with specific individuals in mind. Managers, particularly in leadership, often rely on their networks when filling roles—long before they’re formally posted.

For job seekers, this underscores the need to prioritize networking and visibility. Outplacement providers must equip individuals with tools to tap into these unadvertised opportunities, emphasizing the enduring importance of human connections.

4. Internal Mobility: Building a Culture, Not Just Technology

Internal mobility has become a strategic priority for organizations seeking to retain and grow talent. While many SaaS platforms have emerged to support these efforts, their effectiveness often falls short without a cultural shift to back them up.

The Technology Gap

Internal mobility systems allow employees to showcase their skills and explore new opportunities within the organization. Yet, research from LHH reveals that only 8% of employees actively use these platforms to seek new roles, while 47% look externally for opportunities. This disconnect highlights the limitations of relying on technology alone to drive meaningful change.

Overcoming Barriers to Mobility

A significant challenge is manager resistance. LHH research shows that only 46% of employees feel their managers would support their move to another role within the company. This "talent hoarding" stifles mobility and prevents organizations from fully leveraging their internal talent pool.

Beyond Technology: A Cultural Shift

Organizations must move beyond deploying technology and foster a culture of mobility that encourages collaboration, transparency, and trust. Managers need to embrace the idea that developing and sharing talent benefits the entire organization, not just individual teams.

The Opportunity Ahead

With the right balance of technology and culture, organizations can unlock innovation, improve retention, and create pathways for employees to thrive. Internal mobility is not just about filling roles—it’s about building a dynamic workforce ready to meet the challenges of tomorrow.

5. Scalability Without Losing the Human Touch

The need for scalable solutions will drive innovation in 2025. Similar to how webinars and tools like Zoom made career coaching more accessible, new technologies must strike a balance between efficiency and personalization.

AI-driven tools and digital platforms can complement—not replace—human coaches. Combining technology with the emotional support of human interaction will ensure solutions remain both scalable and effective.

For more information on LHH outplacement support, please get in touch!