The Dollars and Sense
of Coaching

What is the monetary payoff for coaching? Over the years various studies have looked at how coaching affects an organization's return on investment (ROI). This research is easily found on the internet, but what it says boils down to this: Coaching pays, and then some. A quick survey:

One Fortune 500 company found a 529% return on investment and significant intangible benefits to the business. When the financial benefits from employee retention was added in, the overall ROI jumped to 788%." Read more.

Fortune Magazine reports that in one study, when managers of a major firm were asked for a conservative estimate of the monetary payoff from the coaching, they claimed an average return of more than $100,000, or about six times what the coaching had cost their companies. Read more.

And it turns out that coaching and training are a profitable pair. In a study featured in Public Personnel Management Journal it was reported that managers who underwent a managerial training program showed an increased productivity of 22.4%. However, a second group was provided coaching following the training process and their productivity increased by 88%. Meanwhile, Business Wire has reported that Xerox Corporation carried out research that showed that in the absence of follow-up coaching to their training classes, 87% of the skills change brought about by the program was lost. And an International Personnel Management Association survey found that productivity increased by 88% when coaching was combined with training compared to a 22% increase with training alone.

Finally, in an oft quoted study by the Manchester Group, organizational benefits from coaching included ROI figures ranging from $100,000 to $1 million, plus intangible benefits, including:

• Improved Relationships—77%
• Improved Teamwork—67%
• Improved Job Satisfaction—61%
• Improved Productivity—53%
• Improved Quality—48%

The bottom line is that coaching makes real financial sense for the organization as well as stakeholders at all levels.

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