Purpose This study examines the impact of "Change in Direction," a counseling approach for long-term social assistance recipients in Switzerland.Method The results of the study are based on a randomized controlled trial (n intervention group = 31/32, n comparison group = 50/48). Outcome measures were obtained from a two-wave survey and administrative data.Results The intervention increased clients' mastery (= experience of competence, beta = .46, p = .038) and vitality (= one aspect of well-being, beta = .61, p = .008), reducing the gap with the general Swiss working age population by 35% and 54%, respectively. However, the intervention did not increase clients' general life satisfaction or earnings, nor did it reduce health expenditures or cash transfer receipt.Discussion Findings show that goal-oriented counseling can improve feelings of competence and well-being among long-term welfare recipients but that it cannot improve labor market outcomes and financial self-sufficiency.