The Actual ROI of Coaching

As more and more companies, big and small, are looking to support and empower their executives, managers, and employees with Professional or Executive Coaching, a key question that is raised frequently is:

What is the actual ROI of Coaching?

Here are the real questions behind the ROI of coaching question that we need to understand.

Is the company looking at their Professional and Executive Coaching Program as:

• A checkbox to be ticked off to make employees feel they are being supported
• An employee performance improvement and better job satisfaction program
• A program that will positively impact the bottom line for the company

If you or employees at your company are requesting a Professional or Executive Coach and you are beginning to explore options, this article can help answer many of your questions while addressing any concerns you may have.

The insights in this article also help you make a business case for the company to provide coaching to you or other employees at your work.

Start of the Coaching Movement at MMS NorCal

We, at MMS NorCal, feel very strongly about coaching because San Francisco was ground zero, if you will, for the coaching movement with Dr. Chérie Carter-Scott in 1974.

Dr. Carter-Scott discovered she had the skill to help others become attuned to their inner wisdom and she created a coaching methodology which focuses on personal development in a systematic way.

In these almost 50 years, thousands of individuals have graduated as credentialed coaches from the MMS Institute and hundreds of corporations have used the coaching services offered by the institute and its coaches.

Executive Coaching: Productivity, Profitability, & 4-8X Return

With fees for some Executive Coaches climbing upwards of $1,000 – $2,000 an hour, you might wonder what the ROI is for employers who pay for Executive Coaching. 

If you spend a few minutes searching for “ROI for Coaching” on the internet, you will find plenty of research studies including articles on the ROI of Coaching from prestigious publications, such as Forbes and others.

Before I talk about what I have noticed from sitting in the seat as an Executive Coach and Director of the MMS NorCal Institute and the transformation I see in my clients, I would like to share the research on the benefits and ROI of coaching. 

The ROI numbers are actually fairly impressive. 

The International Coach Federation (ICF) has conducted a number of studies that show that Coaching generates an ROI of between $4 and $8 for every dollar invested.

Benefits of Coaching for Coachees

For those being coached, the benefits reported by those being coached include:

• Improved overall satisfaction
• Improved working relationships with direct reports, immediate supervisors, peers, and external clients/relationships
• Better teamwork
• Greater job satisfaction
• Reduction in conflicts
• Greater organizational commitment and loyalty
  

Benefits of Coaching for Companies

The benefits of coaching for companies were reported as:

• Increased productivity
• Increased employee engagement
• Improved customer service and reduced customer complaints
• Improved retention (especially by those receiving coaching)
• Increased bottom-line profitability

One Fortune 500 company studied the impact and ROI of Proforessional Coaching for the employees and employers and found the ROI as high as a whopping 529%! 

In fact, 77% of respondents indicated that coaching had a significant impact on at least one of nine business measures.

Further, the results found that overall productivity and employee satisfaction were the most positively impacted areas (which in turn has an impact on customer satisfaction, employee engagement, quality, annualized financial results, employee retention, and more).

ROI of Coaching: Shape up or Ship out

I have been hired by companies as a benefit to and investment in an employee, as well as, as a last resort, to see if we can get someone to shape up, before they are shipped out. I’ve seen this as a huge ROI in both cases. 

If individuals can be happier and performing at their best, without challenges getting in the way, they are a happier, more engaged, and more dedicated employees.

On the other hand, if an employee is struggling in one way or another, through coaching, it becomes apparent that the role isn’t a fit and the company then benefits by the employee leaving and not keeping the business back from running at maximum capacity. 

Employee & Personal Coaching: How much is Joy Worth to You?

Rates for personal coaches vary widely. You can find some recent grads who might charge less than $100 and some coaches who may or may not be credentialed run between $120-$600 an hour. (MMSNorCal Coaches on average charge between $100 and $300 an hour).  

So how can an individual who is footing their own bill, justify the Return on Investment if they were to work with a coach for 12 sessions, or approximately, $3,600? 

When looking to work with a Coach, you might consider the following questions: 

• How much is it worth for you to be happier?
• How much would it be worth to have improved relationships in your life? 
• If you are looking for a career change but feel stuck, what would be the value as a result of coaching, you have a career that is moving forward smoothly? 
• If you are working with a Coach on your health, what is it worth for you to feel healthy every day? 
• How much is Joy worth to you? 

Once you answer the above questions, your will be able calculate your own ROI and put your own value on Coaching.

More Resources

Here are two articles on this blog that can also help you further understand the value and benefits of a coaching program at your company:

• When you Need a Professional or Executive Coach
• How a 40 Billon Dollar Global Company Launched an Internal Professional Coaching Program

Have more questions? Looking to give Coaching a try? Reach out and let’s find a Coach you can work with!