Outplacement is a "soft" form of employment termination and is designed to ease the transition of a proven manager or specialist into a new domain.
An organisation which engages in outplacement takes its social responsibility seriously both internally and externally. Outplacement is considered to be an image-building measure. Not only employees but also business partners such as suppliers and clients, form definite opinions about how an organisation deals with established employees who simply no longer "fit" into the company structure.
Outplacement allows for a low-conflict severance and can help time-consuming and costly lawsuits to be avoided. The difficulties surrounding the situation can be minimised and positive perspectives emphasised.
For someone who has spent many years in the same company, the prospect of applying for new jobs can be daunting. Often the chances of gaining new employment following outplacement can also seem remote. The support and guidance of an experienced, professional and personable coach is far more valuable for a new career start, than financial compensation.