Return on Investment in Coaching Studies

Return on investment in coaching studies show 150% to 689% yield

11 Study Summaries

1. Chartered Management Institute and Campaign for Learning Coaching Studies Results

“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)

2. Institute and Campaign for Learning Study

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

3. International Personnel Management Association (IPMA)

Published Jan, 2001
Productivity increases 22% from standard training
Combining coaching with standard training increases productivity 88%

4. Lee Hecht Harrison Survey on Coaching

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.

5. Manchester Group Study on Coaching ROI

From Jan, 2001

“Executive Coaching yields return on investment of almost 6 times the initial investment in a typical coaching assignment.”
“Companies who have provided coaching to their executives and their teams have realized improvements of over 48% in productivity, quality and organizational strength.”
“Executives who have received coaching have reported improvements of over 60% in working relationships with direct reports and peers, teamwork, job satisfaction and conflict resolution.”

Tangible (hard/yang) Impact on business:

  • Productivity

53%

  • Quality

48%

  • Organizational Strength

48%

  • Customer Service

39%

  • Reduced Complaints

34%

  • Own Retention

32%

  • Cost Reductions

23%

  • Bottom Line Profitability

22%

  • Top Line Revenue

14%

  • Reduced Turnover

12%

  • Other Business

7%

Intangible (soft/yin) Impacts on business:
  • Improved Relationship: Reports

77%

  • Improved Relationship: Stakeholder

71%

  • Improved Teamwork

67%

  • Improved Relationship: Peers

63%

  • Improved Job Satisfaction

61%

  • Reduced Conflict

52%

  • Increased Organizational Commitment

44%

  • Improved Relationship: Clients

37%

  • Other Intangibles

31%

6. MetrixGlobal Study: 689% Return on Investment in Coaching
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:
“The Bottom-Line:
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

7. 1000 Ventures Study: Return = 5.7 times the investment in coaching

http://www.1000ventures.com/design_elements/selfmade/coaching_at_work_benefits_6x4.png

8. 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”

  • 96.2%  would repeat coaching under same circumstances
  • Median return of 3.44 times the investment.

 9. Sherpa Study: Coaching best for Leadership Development vs. Problem Solving

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 time frame, 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.”

10. Sherpa Study: Coaching Pays

“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.

11. Vision Quest Consulting Study

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%