Here’s some industry statistics and a general overview of the value and ROI executive coaching offers.
A study by the International Professional Management Association found that training plus coaching was up to four times more effective than training alone.
~Wright, D. Global Trends in Coaching, in Human Capital, April-May 2006, p.80-83
A survey in the United Kingdom demonstrated that only 16% of respondents thought training courses were the most effective way for people to learn at work, while 96% thought coaching is an effective way to promote learning in organizations.
~Van Kessel, L. Coaching, A Field For Professional Supervisors? in Ljetopis socijalnog rada 2007., 14 (2), 387-432 str., p. 392
According to a 2010 study by the International Coach Federation (ICF) , overwhelming majority (83%) of people who have experienced professional coaching, are satisfied and would recommend coaching to others.
In a previous research, the ICF found that coaching is generating a very good return on investment (ROI) - a median return of seven times the initial investment for businesses, and nearly 3.44 times for individuals who use coaching.
~Aligning Leader Coaching to Business Outcomes, Right Management 2009, pp.3-4
~ICF Global Consumer Awareness Study, International Coach Federation, December 2010
In another research by DBM in partnership with the Human Capital Institute in 2008 on trends and emerging best practices in Executive Coaching, out of the 472 respondents, 77% estimate the ROI to be at least equal to the investment and as high as 500%.
In one study conducted by MetrixGlobal LLC, companies including Booz Allen Hamilton received an average return of $7.90 for every $1 invested in executive coaching.
A recent study of Executive Coaching in a Fortune 500 firm by MetrixGlobal reported a 529% return on investment and significant intangible benefits to the business.
An internal report of the Personnel Management Association showed that when training is combined with coaching, individuals increase their productivity by an average of 86% compared to 22% with training alone.
A Hay Group study of Fortune 500 companies found that 21 to 40% utilize Executive Coaching; Coaching was used as standard leadership development for elite executives and talented up-and-comers.
A 2001 study on the impact of executive coaching by Manchester Inc. showed an average ROI of 5.7 times the initial investment or a return of more than $100,000, according to executives who estimated the monetary value of the results achieved through coaching*.
Among the benefits to the companies that provided coaching:
- Productivity (reported by 53% of executives)
- Quality (48%)
- Organizational strength (48%)
- Customer service (39%)
- Reducing customer complaints (34%)
- Retaining executives who received coaching (32%)
- Cost reductions (23%)
- Bottom-line profitability (22%)
Among the benefits to executives who received coaching were improved:
- 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%)
- Organizational commitment (44%)
- Working relationships with clients (37%)
*The respondents were executives from large (mostly FORTUNE 1,000) companies who had participated in either "change oriented" coaching, aimed at improving certain behaviors or skills, or "growth oriented" coaching, designed to sharpen overall job performance. The programs lasted from six months to a year. About 60% of the executives were ages 40-49, a prime age bracket for career retooling. Half held positions of vice president or higher and a third earned $200,000 or more per year.
Author - Anil D Dagia, ICF Credentialed Coach, NLP Trainer member of ANLP, UK, Foremost NLP Trainer in Mumbai & Pune (India).
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