Return on Investment in Coaching Studies
– 11 Study Summaries
Return on investment in coaching studies show 150% to 689% yield. Here are a few:
“Coaching at Work” - Results issued in a press release dated May 16, 2002:
80% of executives say they could benefit from coaching and dismiss the suggestion that coaching is just another fad
96% of managers think coaching should be available to every employee, regardless of seniority
85% of managers say enhancing team morale is the main values of coaching
80% of managers say coaching generates responsibility-taking (i.e. leadership development)
supported by Lloyds TSB
- 33% of respondents had received coaching themselves
- 80% believe they would benefit from coaching/more coaching in their workplaces
- 93% believe that coaching should be available to all employees.
Coaching was perceived as great benefit in a range of areas including:
development of task-specific skills
“soft skills” within the working environment
Managers responded that they wanted more support to develop personal effectiveness, emotional intelligence, assertiveness or communication skills.
Conclusion: Coaching supports “hard” and “soft” skill development
Published Jan, 2001
- Productivity increases 22% from standard training
- Combining coaching with standard training increases productivity 88%
Lee Hecht Harrison surveyed 488 Human Resource professionals about coaching:
55% of respondents said that their organization uses coaching as a one-on-one process intended to maximize management and leadership potential
54% do so to change behaviors.
|From Jan, 2001
April, 2004, study found:
- 95% of leaders who were coached made positive behavioral changes.
- 58% said they worked better with peers and team members, which seems low in my experience.
- Leaders who were coached also found positive impact on their quality of consulting and on client satisfaction as well as improvement in their promotion and retention rates.
- According to the 2004 MetrixGlobal Study, the return on investment in coaching: 689%
Here’s their conclusion:
Coaching has positively impacted the ability of leaders to build competencies and deliver bottom-line value to the business. While all competencies were positively impacted, leadership behavior, building teams and developing staff were especially improved. The data
suggest that building these competencies led directly to positive impact on the business.
Teamwork and team member satisfaction were the top business impact areas cited by leaders. Combined, these two areas alone produced over $1.5 M in annualized benefits. Better integrating executive coaching as a centrally managed initiative with other corporate human
resources initiatives and development activities could potentially further accelerate building the required competencies.
The very positive ROI for coaching indicates that any further investment in coaching will more than pay for itself. The focus of decision-making regarding the future of coaching should shift from just what the cost of the coaching would be, to focus on the kind of value that coaching can provide to the business. ”
The study was done by:
ROI and Learning Evaluation, Leadership Coaching and Consulting
MetrixGlobal, LLC www.metrixglobal.net
- Price Waterhouse Cooper Global Study Findings on Coaching ROI
global study w/ASSOCIATION RESOURCE CENTER INC.- 2008
survey pool - 2,165 coaching clients from 64 countries
- 80% of coaching clients report positive change in work performance, communication skills, interpersonal skills, and relationships
- 82.7% of coaching clients check “very satisfied”
The Sherpa survey asked coaches, HR professionals and coaching clients to share the ways they saw coaching used. Coaching is becoming a more widely used leadership development tool. Over three years’ time, the use of coaching primarily for leadership development has picked up from 43% to 50%. In the same timeframe, coaching to address a specific problem or challenge has dropped from a previous high of 37%, down to 32% in the 2008 survey. The remaining 19% of respondents tell us that executive coaching is most needed by people in transition: promotions, transfers and new hires.
Compared to 2006, about seven percent of coaching has moved from specific problem-solving to general leadership development. In a billion-dollar business, that represents re-allocation of $70 million dollars over 2006.
Among those who purchase or use coaching services, 70% feel executive coaching is most appropriate for people who need leadership development.”
“The amount of money spent on coaching is significant, and it’s growing. In increasing numbers, coaches and HR professionals say coaches are engaged for “people who need leadership development." So, we have a growing industry, a shift toward coaching for every emerging leader, and nobody seems to be tracking return on investment.”
Return on investment in coaching is hard to track. We haven’t yet developed adequate measuring sticks for assessing the full value of devoting resources to leadership coaching. But using the best practices available, Sherpa found a 144% return on investment in coaching.
The Sherpa data on coaching fees suggests a high value on every coaching dollar invested.
Vision Quest Reports that of all clients interviewed:
- 100% felt that coaching enabled them to deal 75% better with challenges
- 88% found coaching increased job satisfaction by 75% or more
- 80% improved ability to stay focused under pressure
- 78% increased productivity by at least 50%