Industry statistics position coaching as a cost-effective business resource

Coaching Industry Statistics

According to industry statistics, organizations are increasingly recognizing coaching as a strategic and valuable business, leadership and self-development resource.

The Corporate Leadership Council’s (CLC) report, Building the High Performance Workforce identified employee personal performance as one of nine drivers that lead to performance increases of more than 25%. Results include:

Fair and accurate feedback - 39.1% Increase
Understands performance standards - 36.1%
Emphasis on performance strengths - 36.4%
Manager knowledgeable about employee performance - 30.3%
Feedback that help employees do jobs better - 25.8%

Employee - Manager Relations

According to the Harvard Professional Group, the relationship between an employee and their direct manager is the number one indicator of job satisfaction.

Benefits of Coaching

A Manchester Consulting Group study of Fortune 100 executives found that executive coaching was effective for all participants, including women and ethnic minorities, and resulted in ROI, averaging $100,000 or 5.7 times the initial investment. The following organizational benefits of coaching were cited:

Improved Relationships 77%
Improved Teamwork 67%
Improved Job Satisfaction 61%
Improved Productivity 53%
Improved Quality 48%
Improved Organizational Strength 48%

Another study published in Public Personnel Management Journal examined the effects of executive coaching amongst public sector managers and reported that productivity increased by 88% when coaching followed managerial training, compared to a 22% increase with training alone. Coaching was recognized as a safe, personalized environment providing the trainee with practice and constructive feedback to integrate the new learning.

The impact of executive coaching on a Fortune 500 telecommunications company found a ROI of 529%, according to a MetrixGlobal study . The financial benefits from employee retention, when added, increased the overall ROI to 788%

Coaching Impact

Michigan-based Triad Performance Technologies, Inc studied and evaluated the impact of coaching on a group of regional and district sales managers within a large telecom organization. The third party research study cited a 10:1 return on investment in less than one year with positive results achieved in several key areas leading to an estimated $2 million profitability impact.

The following business outcomes were directly attributed to the coaching intervention

A positive work environment was created, with a focus on strategic account development and achieving higher sales volume.

Customer revenues and customer satisfaction were improved due to fully staffed and fully functioning territories.

Revenues were increased, due to managers improving their performance and exceeding their goals.

Top performing staff, who were considering leaving the organization, were retained, resulting in reduced turnover, increased revenue, and improved customer satisfaction.