Organisational Benefits of Coaching
There are many benefits of coaching, but we will list the key benefits coaching has for an organisation:
A most common use case for coaching is leadership development, particularly coaching the soft skills leaders require today. In fact, 77% of top managers report soft skills as the biggest weakness despite training, whereas 85% of top managers who receive coaching, perform better than their peers in soft skills (Accenture, 2019; Ashridge Executive Education, 2019).
The most frequently cited activities for change management are classroom training, e-learning and face time with senior leaders. However, coaching activities are rated as the most helpful in achieving the goals of change management initiatives (Human Capital Institute & IOC, 2018). Furthermore, using coaching to lead an agile culture is correlated with greater confidence in employees’ capabilities in planning and executing change.
Coaching is increasingly being cited as one of the most effective methods to engage your employees (Insala, 2019; Forbes, 2020). In fact, 60% of employees in organisations with strong coaching cultures were rated as highly engaged and report higher levels of revenue when compared to organisations without coaching cultures (HCI/ICF, 2015, Mazar, 2017). Coaching helps improve communication between team members and also helps foster a leadership based on trust, where feedback and goal setting will be easier. In this way, employee engagement is fostered and turnover is reduced.
Career development is increasingly cited as one of the top reasons why employees leave an organization (Work Institute, 2019,) In fact a CareerAddict (2020) study found that 82% of employees would leave their company due to lack of career development. Career development is particularly important for the younger generations. By offering a personalised coaching experience, a company will attract much more talent.
O’Reilly et al. (2014) actually found that employees who are ignored and neglected in the workplace are more likely to quit their jobs. In particular, when employees are not given clear guidance for skills or career development, they are far more likely to become disengaged and leave the company (Business2Community, 2020). Thus, engaging employees through methods such as coaching, is fundamental for strengthening retention.