Coaching’s ROI — The Findings

 

Return on investment is a deciding factor for any service your organisation pays for, so just how effective is coaching at driving the bottom line?

 

Kevin McAlpin

 

At PCI, we have found that coaching not only affects the person being coached, but also the employees in the organisation who are in turn receiving management or coaching from that individual. It’s what gets us out of bed in the morning — knowing that we’re positively affecting organisations of all shapes and sizes.

Even if we look at one of our clients — Transport for London — we’ve demonstrated a £3 million saving (You can read more about it in our case study). But what about industry surveys, reports and studies that measure the power of coaching?

CIPD Training

According to the results of the CIPD training and development survey, two-thirds of respondents reported that they felt their coaching activities had been effective in meeting objectives. Almost all (99%) felt that coaching had brought tangible benefits to both individuals and organisations.

The Manchester Inc Study

Manchester Inc. released a study of 100 executives that quantifies the business impact of external executive coaching. Companies that provided coaching to their executives showed improvements in productivity, quality, organisational strength, customer service, and shareholder value. They received fewer customer complaints and were more likely to retain executives who had been coached. In addition, a company’s investment in providing coaching to its executives showed an average return on investment (ROI) of almost six times the cost of the coaching.

Among the benefits to companies that provided executive coaching were improvements in:

  • Productivity (reported by 53% of executives)
  • Quality (48%)
  • Organisational strength (48%)
  • Customer service (39%)
  • Reducing customer complaints (34%)
  • Retaining executives who received coaching (32%)
  • Bottom-line profitability (22%)

Among the benefits to executives who received coaching were, improved:

  • Cost reductions (23%)
  • Working relationships with direct reports (reported by 77% of executives)
  • Working relationships with immediate supervisors (71%)
  • Teamwork (67%)
  • Working relationships with peers (63%)
  • Job satisfaction (61%)
  • Conflict reduction (52%)
  • Organisational commitment (44%)
  • Working relationships with clients (37%)

The IPMA Study

Research by the International Personnel Management Association (IPMA), concluded “ordinary training typically increased productivity by 22%, while training combined with life coaching increased productivity by 88%”.

The ‘Coaching at Work’ Study

The Chartered Management Institute and Campaign for Learning published the results of their “Coaching at Work”, an in-depth analysis of the benefits of coaching.

Results showed —

  • Four out of five executives believe they would benefit from coaching at work and dismiss the suggestion that coaching is just another fad
  • Virtually all managers (96%) think coaching should be available to every employee, regardless of seniority
  • 85% of managers say the main value of coaching is in enhancing team morale
  • 80% of managers value coaching for generating responsibility on the part of the learner

The International Coach Federation Study

  • 70% of clients said their investment in a coach was VERY valuable
  • 81.9% of coaching clients said it was important to them that their coach has special training in coaching

The outcomes that clients most often attribute to their coaching are —

  • Higher self-awareness (68%)
  • A better balanced life (61%)
  • Smarter goal-setting (62%)
  • Lower stress levels (57%)
  • Greater self-confidence (52%)

Championing Productivity

The right coaching can make a huge impact to organisations at every level. Our track record speaks for itself — our results show we can make a measurable difference at an individual, team and organisational level.

Explore our Case Studies to show coaching’s huge benefits and ROI at work.

2017-11-17T08:58:00+00:00