Research from the International Coach Federation (ICF) suggests that companies that invest in coaching have an average return on investment (ROI) of seven times the initial investment.
Specifically, the research found that when managers change as a result of coaching, direct reports change, too:
· 90% of employees report developing new skills as a result of their manager being coached.
· 51 % of respondents shared that their manager has helped encourage them to learn continuously (for example, by encouraging a growth mindset).
· 67 % of respondents agreed they’re more likely to seek out opportunities to develop new skills.
But one of the biggest benefits—and one that will almost certainly ensure leadership buy-in—is the return on investment organisations reap from coaching. In today’s context coaching isn’t just a mere employee perk or motivational boost, it is an indispensable strategic imperative, driving measurable and impactful financial returns. The compelling 51 % revenue uptick reported by organizations fortified with robust coaching cultures serves as irrefutable evidence.”
We, @Quint Consulting Services, are seeing a change from team training to personal coaching. The effect of personal coaching is much more impactful and the learning is more practical and doable.
Coaching – combined with Mentoring is a deadly combination and has tremendous impact on an organisation’s performance and success.
We need to empower small and medium enterprises with the resources, knowledge, and confidence to deliver coaching and mentoring (both internally and externally). The idea is to find and certify internal coaches and mentors, so that the organization can work with teams at a more holistic and deep level, impacting real and tangible improvements
The process
Before you start the coaching process, one needs to understand the coachee’s behavioural traits. There are a lot of global psychometric assessment tools available like The Omnia Group, Inc. , TalentSmart® , Harrison etc. which can help you understand the current behavioural insights of the person.
Some of the key insights that these tools cover includes:
– ASSERTIVENESS / STRONG PERSONALITY / OVERBEARING
– RISK TAKING ABILITY
– RESILIENCE
– RELATIONSHIP BUILDING
– EMOTIONAL ALIGNMENT
– ANALYTICAL ABILITY
– MULTITASKING / VARIETY
– IMPACT OF CHANGES
– METHODICAL
– SPEED & AGILITY
– ADAPTABILITY
– DECISION MAKING ABILITY
– ABILITY TO DELEGATE
– COMPLIANT – FOLLOW LAID OUR PROCESSES / PROCEDURES
– ENERGY – PRODUCTIVITY
– PERSPECTIVE – MATURITY OF JUDGEMENT
– INTENSITY – STRENGTH OF BEHAVIOUR
Once you have the above key traits identified in the person, it becomes easier to understand and connect with the person to be able to coach and mentor in an effective way.
ROI Evaluation
Only 18 % of projects are analysed at the level of ROI as depicted in the graph below:
Why ROI is difficult to do
It has been observed that the a majority of organisations, do not undertake ROI studies and some of the reasons are mentioned below:
Although the trend is seen of moving from training to personal coaching, however the impact analysis or ROI of coaching is time consuming and difficult to ascertain.
Only a few forward looking organisations have moved over to majority coaching style of learning, most organisations are still focused on the classical training / learning methodologies. It will take time to move to the full coaching style due to the complexities of time and cost involved.
In my next article, we will explore further in the realm of coaching and mentoring.
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The 7x ROI number always gets attention, but what convinced me is the downstream effect: when a manager changes, their whole team changes. That compounding is where the real return hides.
Coaching is one of the few development interventions that pays for itself in retention alone. People rarely leave a job where they feel they are genuinely growing.
Agree that this is a strategic imperative rather than a perk. Framing it that way is usually what finally gets leadership to sign off on the budget.
The 90% figure on new skills stands out. It suggests coaching does not just make one person better, it seeds a learning culture around them.
Mentoring plus coaching really is a strong combination. The coach helps you see the pattern, the mentor shows you the path they already walked.
Practical and doable is exactly the point. The best coaching I have seen ties directly to a live challenge the person is facing that week.
Our own experience matches this. After a round of coaching for team leads, the volume of unsolicited development requests from their reports went up noticeably.
Coaching cultures take time to build, but the compounding effect on performance once they take hold is real. Three years in you can feel the difference.
It is telling that 67% become more likely to seek out new skills on their own. That is the multiplier: self-directed learning after the formal sessions end.
Nice framing of coaching as an investment rather than a cost. The way it is budgeted often says everything about whether it is taken seriously.
The shift from team training to personal coaching is something we noticed too. The learning sticks better when it is tailored to one person’s situation.
This is why measurement matters. Simple before-and-after goals agreed at the first session make the return visible without overcomplicating it.
The ICF research is a useful anchor for the conversation, especially when you are trying to persuade a sceptical finance team.
Leadership buy-in is the whole game. Once senior people are visibly coached themselves, everyone else stops treating it as remedial.
Coaching plus mentoring really can be a deadly combination, in a good way. One keeps you accountable, the other keeps you inspired.
The connection between coaching and psychological safety is underrated. People take more risks when they know someone has their back.
It is easy to forget that coaching benefits the coach too. Having to explain your own thinking sharpens it.
The numbers on new skills and continuous learning suggest the real output of coaching is a habit, not a one-off improvement.
Good read. The takeaway for me is to treat coaching as part of the operating model, not an add-on you dip into once a year.
The 7x return story is compelling, but I would love to see how it breaks down by seniority. My guess is the effect is strongest for first-time managers.