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Benefits of Coaching

A career-coaching program within an organization (whether carried out by internal or external coaches) offers many benefits:
  • Return on Investment - A Manchester, Inc. study in 2001 demonstrated a 7-fold return on investment from coaching. And while every organization's results may not be identical, Jack Phillips' work in developing financial models to measure coaching (e.g., Return on Investment in Training and Performance Improvement Programs) further demonstrates the value of coaching in "hard dollars" to the organization.

  • Significantly increased productivity improvement - when training alone is offered to "fix" or improve employee performance, productivity improves an average of 22 percent, but when follow-on coaching is added to the equation, the improvement goes up to 87 percent! (Public Personnel Management Magazine)

  • Improved job/employee fit - many employees simply need objective feedback, competency modeling and coaching to better determine what they want to do and the best position within the company to do it in

  • Improved morale - the Hawthorne effect still applies today: when employees feel their needs are valued, they perform better and feel better about the company.

  • Bottom-line improvement - the Gallup organization's research has found that when employees are "engaged," meaning they are doing work they love and putting forth their best efforts (as measured by 12 key criteria), increases automatically follow in sales, customer loyalty, and profits, with a corresponding decrease in employee turnover ("Taking Feedback to the Bottom Line," James Harter, Gallup Management Journal Spring 2001).

  • Enhanced change management efforts - the #1 reason that most mergers, acquisitions, and other consolidations do not succeed is that management failed to accommodate the human side of the change and the people that must implement them (Sacred Cows Make the Best Burgers, by Kriegel and Brandt, Time-Warner 1996). Coaching can allow an outlet which helps employees process the change in a healthy way.

  • Sustained and enhanced high performance -rather than using coaching only to address performance problems, coaching can optimize the high performers by keeping them moving on to new challenges to contribute to the company.

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