As I mentioned in Part 1 of this article (Read here), now is the right time to gain buy-in to create a coaching culture.
More and more companies all over the world are suffering from low employee enagement, and using coaching to tackle the problem head-on.
In this second part of this article, I’d like to show you how you can justify the ROI of coahing, and something you’ll really need to think about before you start preparing your presentation.
Though the ROI of coaching services and training is stereotypically hard to pin down, real studies are now being done to support these important engagements:
“The ICF Global Coaching Client Study Executive Summary (April 2009) reports, "The vast majority (86%) of those able to provide figures to calculate company ROI indicated that their company had at least made their investment back.
“In fact, almost one fifth (19%) indicated an ROI of at least 50 (5000%) times the initial investment while a further 28% saw an ROI of 10 to 49 times the investment. The median company return is 700% indicating that typically a company can expect a return of seven times the initial investment."
And if you don’t have enough stats on employee engagement and its effect on business outcomes handy to support your case, here are 32 from Kevin Kruse, and their sources.
If your organisation is modern enough to accept infographics, here's a very modern one, shared by Human Resources Today.
If not, the statistics towards the top of the article may come in useful, particularly those on corrective feedback.
But before you jump into your buy-in challenge
Don’t forget to be prepared regarding what you might need to do to start the creation of a coaching culture once you do get buy-in.
According to Kathleen Stinnett, BS, MS, the Master Certified Coach of the International Coach Federation, with tight budgets in a tough economic climate, many organizations are looking for internal solutions for greater performance and capability—instead of hiring external coaches, which can be a costly solution to a simple problem.
References:
1. The Business Case for Executive Coaching – The ICF Coaching ROI Global Study | The Society for the Advancement of Consulting, The Business Case for Executive Coaching – The ICF Coaching ROI Global Study, https://www.consultingsociety.com/business-case-executive-coaching-icf-coaching-roi-global-study
2. Results! Why leaders need to be great coaches https://www.unthsc.edu/administrative/wp-content/uploads/sites/23/Choice-Magazine-Article-Coaching-Gets-Results.pdf