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The ROI of Executive Coaching and Workforce Training

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  • Are you worried about attracting and retaining employees?

  • How could you improve engagement and productivity?

  • Do employees have the opportunity to learn and grow in their jobs?

 

Why You Should Consider Executive Coaching and/or Workforce Training

 

Many businesses recognize that they could be doing a better job developing and managing their workforce but they hesitate to introduce executive coaching and/or employee training programs because of the cost. What they don’t know is that such programs have a great return on investment that has been proven in multiple studies.* In fact, the ROI can be as high as 788%.

 

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Benefits to Companies

Companies can reap substantial rewards from executive coaching and employee training programs including:

  • Increased productivity

  • Reduced turnover

  • Attracting top talent

  • Improved employee engagement 

These effects in turn often lead to more revenue, higher profitability, and greater customer satisfaction and retention.

Productivity gains are particularly important. One study found that training increased productivity by 22%, while executive coaching improved it by 88%.

 

According to the International Coaching Federation (ICF), executive coaching can result in a:

  • 70% increase in individual performance

  • 50% increase in team performance

  • 48% increase in organizational performance.

 

Benefits to Managers and Employees

 

Managers and employees who receive coaching and training typically report higher job satisfaction and improved work performance. They also tend to feel more strongly invested in and engaged with the company.

Training gives managers and employees the skills they need to be more effective in their jobs and the opportunity to advance in their career.

 

Executive coaching teaches managers how to be stronger leaders, including helping them make better decisions; attract, retain and motivate employees; and address business challenges.

Importantly, when managers provide coaching and training to those below them, they are viewed more favorably by senior executives as well as junior managers and staff.

 

By learning both hard and soft skills, including communication, leadership, emotional intelligence, and stress management, managers and employees are more likely to be successful and satisfied with their jobs and work-life balance.

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Calculating ROI

While there are substantial benefits to coaching and training, determining the precise ROI can be challenging in some cases. Increases in productivity in terms of work output can be calculated quantitatively but improvements in work quality are harder to measure.

 

Similarly, savings from decreased turnover are relatively easy to determine by looking at average recruitment, interviewing, and onboarding costs. The less turnover, the more money saved. However, the qualitative benefits of higher employee satisfaction and engagement, better communication within the company, and more effective leadership are more difficult to value in dollars and cents.

 

Despite the challenges of making qualitative assessments, companies should include them in calculating ROI. Businesses should survey their managers, employees, and customers to understand the impact of coaching and training. Enough research has been done showing that workplace culture and employee satisfaction matter. Companies that invest in coaching and training, provide growth opportunities, and encourage employee engagement are often rewarded with increased profitability and a more committed and productive workforce, which ultimately creates a stronger business.

 

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Next Steps

 

Learn more about our Corporate Coaching, Workplace Training, and Leadership Training. Then contact me for a free consultation on how your company can leverage executive coaching and workforce training programs to improve its performance.

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