Coaching Delivers Solid ROI

From Workplace HR by Douglas Publications

Learn how TABIC can put together a cost-effective suite of tools for executive assessment, development and coaching.

A majority of business leaders and HR professionals who responded to a recent study say that executive coaching is a credible and effective way to enhance organizational performance. In Trends in Executive Coaching: New Research Reveals Emerging Best Practices, DBM, a global outplacement, coaching, and career management firm, and the Human Capital Institute (HCI), a professional association, found that organizations are using executive coaching to enhance performance across an enterprise by grooming high potential employees, but also supporting high-performing executives and leadership teams. Organizations responding to the study believe that coaching can help address issues of talent shortages in the future by maintaining a ready pipeline of talent.

The study of approximately 500 top business and human capital leader reports the following findings:

  • Organizations are receiving a high return on investment (ROI) for their executive coaching programs. Leaders who answered the survey reported return on investment of 100 percent to 500 percent.
  • More than three-quarters of enterprise executives view executive coaching as credible.

"DBM's research reinforces that executive coaching can generate significant rewards within an organization," said Karen O'Boyle, President of DBM North America. "Businesses that invest in human capital by effectively leveraging executive coaching to groom talent throughout the enterprise are witnessing a significant impact on both operational excellence and the bottom line."   To measure ROI on executive coaching, organizations are using the following factors:  

  • Executive output, such as sales revenue and productivity
  • Quality improvements
  • Cost savings
  • Turnover  

Organizations also considered qualitative factors to measure the impact of executive coaching:  

  • Achievement of objectives
  • Anecdotal evidence
  • Assessment from the coach
  • Other's perception of the coach
  • Executive's readiness for promotion or to accept new responsibilities  
"Executive coaching is clearly an important tool for organizations seeking to embrace the talent economy," said Allan Schweyer, Executive Director and SVP of Research at HCI. "Talent management executives recognize that executive coaching can not only enhance situational learning, but also lead to enhanced performance and a competitive advantage in the marketplace."