"Unpacking the Impact: Exploring the ROI of Executive Coaching"

The ROI (Return On Investment) of Coaching

The executive coaching industry is growing.  More and more people are going into coaching and more organizations are integrating coaching into their business.  The executive coaching business is over $9 billion and some estimates project continued growth of 10% a year.  One of the main reasons for this growth is the outstanding ROI of coaching.  This article clarifies what executive coaching is, its benefits, and how to consider its Return on Investment (ROI). 

What is executive coaching?   

The International Coach Federation (ICF) defines coaching as the thought-provoking and creative process where coaches collaborate with clients to inspire them to maximize their personal and professional potential. Its goal is to unlock an individual’s untapped sources of productivity, leadership, and imagination for personal and professional advantage. Coaching is typically delivered in one-on-one 60-90 minutes sessions.  My approach starts with 6 sessions that occur every 2-3 weeks.  I start with defining goals, confirming logistics, and creating an alliance to support my client.       

What are the benefits of coaching?

Coaching provides a confidential advisor who will support and challenge you, leading to improved performance and job satisfaction. Benefits include: 

• Improved performance

• Improved goal setting and accountability

• Improved problem solving

• Reduced stress and increased job satisfaction

These benefits sound too good to be true but they consistently show up in top-notch coaching engagements.  I have coached hundreds of executives and have consistently seen impact and transformation.  This is not a sales pitch; it highlights the impact a skilled coach can deliver on a consistent basis.  

How can you measure the ROI of coaching?

Over the past ten years, there have been several approaches to measuring the ROI of coaching.  Central to the ROI is an improvement in performance, employee retention, and well-being.  

Impact	Leads To
Improved relationships with direct reports, peers and other key stakeholders	Increased productivity
Improved goal setting and accountability	Increased customer satisfaction
Increased commitment to the organization	Increased productivity
Increased job satisfaction	Reduction in turnover

Based on Forbes - The ROI Of Executive Coaching: A Comprehensive Guide - Espeland, 2023

Many organizations have taken the basic framework above and quantified the results based on internal metrics.  Three widely stated ROI surveys are the following:

• A study of Fortune 500 companies by M.C. Anderson, Ph.D. of MetrixGlobal, LLC, concluded 788% ROI, or a 529% ROI when excluding benefits from employee retention.

• The Manchester Review revealed that companies investing in executive coaching realized an average ROI of almost six times the cost of the coaching. 

• PwC and the Association Resource Center report an average ROI of seven times the cost of employing a coach.

Drivers for ROI were improved employee productivity, engagement, and satisfaction which led to  improved quality, service, and customer satisfaction, which then led to improved financial results.

How can I explore if coaching is good for me and my organization?

Based on the ROI outlined above, it could be extremely worthwhile to invest in coaching.  Coaches use a range of pricing models, but experienced and certified coaches charge from $300/hr to over $1,500/hr.  Most coaches will offer a free 30-minute consultation to determine if there is a good fit.  Clients can usually sign up for three to six sessions at a time so they can experience coaching and determine the value.  Based on this initial investment, you will be able to determine if the ROI is good for you and your business. 

My mission is to help clients achieve their goals and increase job satisfaction.  We all have the capacity to grow, realize sustainable change, and forge incredible careers.  I encourage you to experience executive coaching and let me know if I can help.