FWIW I did some playing...  this is the script I used (pardon the JUNK prefix, it simply reminds me to clean this up when I am done)

IF OBJECT_ID ('JUNKDepartment_SRC', 'U') IS NOT NULL
DROP TABLE dbo.JUNKDepartment_SRC;

CREATE TABLE [dbo].[JUNKDepartment_SRC](
   [DepartmentID] [smallint] IDENTITY(1,1) NOT NULL,
   [Name] varchar(50) NOT NULL,
   [GroupName] varchar(50) NOT NULL,
   [ModifiedDate] [datetime] NOT NULL
) ON [PRIMARY]

declare @chgs table(
   [DepartmentID] [smallint],
   [Name] varchar(50) ,
   [GroupName] varchar(50) ,
   [ModifiedDate] [datetime]
)

Insert into [dbo].[JUNKDepartment_SRC]([Name],[GroupName],[ModifiedDate])
Values('Engineering','Research and Development','5/24/2017' );

insert into [dbo].[JUNKDepartment_SRC]([Name],[GroupName],[ModifiedDate])
output inserted.DepartmentID, inserted.name, inserted.GroupName, inserted.ModifiedDate
Values('Sales','Sales & Marketing',getdate());

-- this is something different I tried 
update [dbo].[JUNKDepartment_SRC]
set [GroupName] = 'Sales, Marketing & Promos'
output inserted.* into @chgs
where [DepartmentID] = 2

delete [dbo].[JUNKDepartment_SRC]
output deleted.* into @chgs
where [DepartmentID] = 1

select * from @chgs
-- the last query returns this
DepartmentID    Name    GroupName                          ModifiedDate
2                      Sales    Sales, Marketing & Promos    2017-05-25 11:36:18.830
1                   Engineering    Research and Development    2017-05-24 00:00:00.000

It works on UPDATE too. Enjoy