3 Benefits of Coaching Most People don’t know.
In any business decision there should be the question of what is the rate of return on my investment. The decision to use a business coach should be no different. Unlike buying a piece of machinery or securing a new facility with more production space, hiring a coach may not seem to yield measurable results. We will look at the benefits of coaching, the results of studies by organizations reviewing coaching and what advantage coach might bring your company.
A Judgement-free zone!
Business coaches offer a unique perspective for their clients. “For CEOs, founders, and executives, it gets lonely at the top. Without a mentor and accountability partner, many business leaders find themselves hitting the ceiling of what they can achieve.” (Hubspot). Coaches can offer an unbiased accountability relationship, or a safe sounding board, free of judgement.
Coaches also are not focused on the results, but rather on how the results are achieved. If you do the right thing, the right things are bound to happen. In an established relationship coaches can point out a self-limiting belief or pattern.
Coaches are not part of the organization so they typically aren’t swayed by the results the same way that staff can be. Their main focus is that the coachee (or client) grows and finds value in their service. The result is typically growth for both the individual and the organization they lead.
2. A great return on your investment.
If someone told you that if you spend $1 you would get $1.70 back? You would probably ask how many times you could do it. Or run to the bank to get the biggest loan you could afford. There is also the story of the CFO who cautions the CEO who wants to put new employees through expensive training “What if they leave?”. To which the CEO retorts “What if we don’t train them and they stay?”
The Institute of Coaching published a report that;
80% of people who receive coaching report increased self-confidence
70% benefit from improved work performance, relationships, and more effective communication skills
86% of companies report a 100% return on investment and more (IFC 2009)
Research by the International Personnel Management Association (IPMA) concluded that "ordinary training typically increased productivity by 22%, while training combined with coaching increased productivity by 88%” (IPMA 2001)
These studies are not alone in their assessment of the benefits of coaching. A quick search on the internet shows a belief in the value of coaching from Human Resources departments through to high-level-executives from large firms.
3. A competitive edge.
Statistics Canada published “In June 2021, there were 1,291,424 employer businesses in Canada and 2,961,476 non-employer businesses” (Statistics Canada 2022). Ibis World on their website claimed that there were 4,044 coaching businesses (Ibisworld.com 2022)
Viewing only employer business, there are 319 business per coaching business. Although some coaching companies may be quite large (80 to 100 coaches), the largest of employers are many multiples of the largest coaching company size. That means that in all likelihood less than 10% of companies are currently engaging a business coach.
While that doesn’t mean that business is easy if you hire a coach. The rewards of business coaching range from personal accountability and balanced lifestyles to increased productivity in your business. Where could you most use a coach? Talk to one of Drive’s coaches today.
