Effectiveness of Coaching: Research Summaries

Maximizing the Impact of Executive CoachingThe Manchester Review, 2001, Volume 6, Number 1, Joy McGovern,

  • 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.

International Coaching Federation (ICF)

  • 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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