Coaching ROI: Here's the hard evidence you need to get buy-in (Part 2 of 2)
As I mentioned in part 1 of this article, now is the right time to gain buy-in to create a coaching culture.
More and more companies all over the world are suffering from low employee engagement, and using coaching to tackle the problem head on.
In this second part of this article, I’d like to show you how you can justify the ROI of coaching, and something you’ll really need to think about before you start preparing your presentation.
Though the ROI of coaching services and training is stereotypically hard to pin down, real studies are now being done to support these important engagements:
“The ICF Global Coaching Client Study Executive Summary (April 2009) reports, "The vast majority (86%) of those able to provide figures to calculate company ROI indicated that their company had at least made their investment back.
“In fact, almost one fifth (19%) indicated an ROI of at least 50 (5000%) times the initial investment while a further 28% saw an ROI of 10 to 49 times the investment. The median company return is 700% indicating that typically a company can expect a return of seven times the initial investment."1
And if you don’t have enough stats on employee engagement and its effect on business outcomes handy to support your case, here are 32 from Kevin Kruse, and their sources.
If (and only if!) your organisation is modern enough to accept infographics, here's a very modern one, shared by Human Resources Today. If not, the statistics towards the top of the article may come in useful, particularly those on corrective feedback.
But before you jump into your buy-in challenge...
Don’t forget to be prepared regarding what you might need to do to start the creation of a coaching culture once you do get buy-in.
According to Kathleen Stinnett, BS, MS, the Master Certified Coach of the International Coach Federation, with tight budgets in a tough economic climate, many organizations are looking for internal solutions for greater performance and capability—instead of hiring external coaches, which can be a costly solution to a simple problem.2
I hope this was useful to you. If you’d like more tips on how to create a coaching culture, please see my next article, or subscribe to get my articles sent straight to your inbox.
Trayton Vance, from Coaching Focus
Trayton is the CEO of Coaching Focus, and has been helping leaders and teams in major organisations overcome complex challenges for over 15 years.
Coaching Focus partners with organisations to create sustainable, performance-focused coaching cultures.
They offer ILM Level 7 Certificate in Executive Coaching and Mentoring courses for senior managers or HR/LD professionals who want to develop their expertise, Manager as Coach skills programmes, and other courses, to UK companies like Tesco and BSI Group.
They also offer coaching consultancy services to companies internationally.
1. The Business Case for Executive Coaching – The ICF Coaching ROI Global Study | The Society for the Advancement of Consulting, The Business Case for Executive Coaching – The ICF Coaching ROI Global Study, https://www.consultingsociety.com/business-case-executive-coaching-icf-coaching-roi-global-study
2. Results! Why leaders need to be great coaches https://www.unthsc.edu/administrative/wp-content/uploads/sites/23/Choice-Magazine-Article-Coaching-Gets-Results.pdf