Read MoreContinuing our exploration of how coaching benefits organisations, here’s benefit…
An article published by the Institute of Coaching claims that 86% of companies report that they recouped their investment in coaching.
As the bottom line for most organisations is their Return On Investment, the question that frequently arises is – what is the ROI on coaching?
A study by The Manchester Consulting Group suggests an ROI of between 5.5 and 7.9 times the cost of the engagement for executive coaching. This, combined with a variety of soft benefits includes:
• Improved working relationships between managers and direct reports.
• Better teamwork.
• Better working relationships with peers.
• Greater job satisfaction.
• Reduction in conflicts.
• Increased organisational commitment.
• Better working relationships with clients.
However, these results may not be immediately visible as coaching takes time, effort and long-term commitment.
None-the-less, coaching is a practice that can add great value to an organisation by bringing about a significant improvement in the overall organisational output in a few key areas:
a) Coaching helps organisations identify High Potential Employees, who – according to a study conducted by People Analytics – generate 91% more value than other employees.
High-potential employees are those passionate people with the capacity to take on and move quickly through various roles in a company, simultaneously at times. These are employees who tend to make stellar contributions, achieving performance targets far superior to their peers.
Identifying such talent requires that managers recognise how an employee’s behaviours, attributes, and skills are distinct from other employees. And that is precisely where coaching comes in.
Coaching gives managers the time and opportunity to connect with employees more frequently, helping them build a certain level of familiarity and giving them deeper insights into the employee’s true capacity – their strengths, areas of improvement, knowledge, skill-set and career aspirations.
And once managers identify the high-potentials in their team, it becomes easy for them to work with those employees to develop advanced competencies.
b) Coaching is great value for money: As mentioned earlier, the average payoff from coaching is over 5.5 times the cost incurred, which indicates that investing in coaching is totally worth it!
c) Coaching increases employee productivity: A study conducted by Richard Kopelman from the University of New York and his fellow researchers found that training can increase productivity by 22.4%. But when this is combined with coaching, that number rises to 88%.
Need we speak more about the value that coaching adds?
Coaching is not a one-time activity, but a consistent process, which – according to numerous research studies – can be immensely beneficial to managers, employees and the organisation alike.
A few benefits enumerated in this course are:
I. The Benefits of Coaching to Managers are:
1. Employee Retention and Engagement
2. Improved Employee Performance
3. Gain Employee Trust
II. The Benefits of Coaching to Employees are:
1. Increased Self-Confidence
2. Improved Performance and Productivity
3. More Growth and Development Opportunities
III. The Benefits of Coaching to Organisations are:
1. A Continuous Learning Culture
2. Return on Investment (ROI)
Done with the lesson? Please take the accompanying quiz.
Happy Quizzing!