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ROI on Coaching

Coaching in the organization often targets executives and senior managers. In one study involving Fortune 1000 companies, the value of executive coaching and ROI of coaching showed the following:

  • Observable productivity increases reported by 53% of executives

  • Increase in Quality – 48%

  • Increase in Organizational strength – 48%

  • Increase in Customer service – 39%

  • Reducing customer complaints – 34%

  • Retaining executives who received coaching – 32%

  • Cost reductions – 23%

  • Increase in Bottom-line profitability – 22%

  • Improved working relationships with direct reports – reported by 77% of executives

  • Improved working relationships with immediate supervisors – reported by 71% of executives

  • Improved teamwork – reported by 67% of executives

  • Improved working relationships with peers – reported by 63% of executives

  • Increased job satisfaction – 61%

  • Conflict reduction – 52%

  • Increased organizational commitment – 44%

  • Improved working relationships with clients – 37%

Statistics on the Benefits of Coaching – a survey from Clear Coaching Limited, February 2007 found that tangible benefits from coaching showed the following results for a large range of companies:

  • New or improved skills – 50%

  • Work relationships within a team – 50%

  • Seeing others’ perspectives – 47%

  • Clarity in work life – 43%

  • Increased motivation – 43%

  • Improved atmosphere – 40%

  • Sales and revenue – 23%

  • Obtained goals – 20%

The International Coaching Federation (ICF) surveyed coaching clients (n = 210) about the value and use of coaching. The study included 197 employed professionals, all of whom had a formal, on-going relationship with a coach (average duration = 9 months), over 80% of the respondents had undergraduate degrees and over a third had Master’s degrees or higher. The results:

  • 70% believed business coaching is “very valuable.”

  • 50% confide in their coach as much as their best friend, spouse or therapist

  • 12% confide in their coach more than anyone else.

Some of the outcomes of coaching were:

  • 62.4% smarter goal-setting

  • 60.5% more balanced life

  • 57.1% lower stress levels

  • 52.4% more self-confidence

  • 43.3% improvement in the quality of life

  • 25.7% more income

 

But what is the literal ROI?

  • In a study conducted by Metrix Global, companies received an average return of $7.90 for every $1 invested in executive coaching, another showed a 529% ROI.

 

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