Effectiveness of Coaching: Research Summaries
Maximizing the Impact of Executive Coaching, The Manchester Review, 2001, Volume 6, Number 1, Joy McGovern, et.al.
- Manchester, Inc. surveyed 100 executives, most of which were from Fortune 1000 companies.
- Their research showed that a company’s investment in Executive Coaching realized an average ROI of almost six times the cost of the coaching.
- 86% of organizations saw an ROI on their Coaching engagements
- 96% of those who had an Executive Coach said they would repeat the process again.
- Behind these results were tangible as well as intangible factors:
- Tangible factors were areas such as increased productivity, higher levels of overall employee performance, reduced costs, growth in revenue and sales, higher employee retention, and higher engagement of employees.
- Intangible factors were increased confidence of those being coached, improved communication, stronger employee, and peer-to-peer, and key stakeholder relationships.
IPEC Coaching Summary
- Individuals increase their productivity by an average of 86% when training is combined with coaching, compared to just 22% with training alone. The Personnel Management Association, internal report
- A third of all Fortune 500 companies utilize Executive Coaching as standard leadership development for their elite executives and talented up-and-comers. Source: The Hay Group
- For every $1 invested in Executive Coaching, companies surveyed received an average return of $7.90. MetrixGlobal LLC
- 86% of companies rate their ROI favorably for their investment in coaching, stating that the investment at least paid for itself.
- ROI figures for coaching have been reported at estimates of:
- 221% Phillips, 2007
- 545% McGovern et al., 2001
- 788% Kampa-Kokesch & Anderson2001
- Figures of between 500% and 700% commonly reported as being a reliable ROI for executive coaching, Anderson, 2008.
The Institute of Coaching
- Over 70% of individuals who receive coaching benefited from improved work performance, relationships and more effective communication skills.
- 86% of companies feel that they recouped the investment they made into coaching plus more on top.
- Studies show that coaching is effective at reducing procrastination and facilitating goal attainmentand there is a growing body of empirical research that supports the findings that business coaching really does facilitate goal achievement.
“How’s Your Return on People?” (Harvard Business Review, March 2004)
- Laurie Bassi and Daniel McMurrer note that three stock portfolios comprised only of companies that “spend aggressively on employee development” each outperformed the S&P 500 by 17 – 35% during 2003.
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