Statistics
"97% of the people who hire Business Coaches, receive at least 3 times their R.O.I.
Business Coaching is a major growth industry with at least 10,000 coaches working for businesses today and is expected to increase by 50,000 in the next 5 years.
The Executive and Business Coaching industry is growing by about 40% a year.”
-The Economist, Dec. 2007
ICF (International Coaching Federation) surveyed 210 clients for feedback/opinions about the value of business coaching. Of the respondents, 197 all had a formal and on-going relationship with a Coach. Over 80% of them had Undergraduate degrees and over 1/3 had their Masters or higher.
"Coaching produced a 529% return on investment and significant intangible benefits to the business. Including the financial benefits from employee retention which boosted the overall ROI to 788%"
-Executive Briefing: Case Study on the Return on Investment of Executive Coaching Prepared by Merrill C. Anderson, PH.D. MetrixGlobal, LLC
“I absolutely believe that people, unless coached, never reach their full potential.”
- Bob Nardelli, CEO, Home Depot
“Many of the world’s most admired corporations, from GE to Goldman Sachs, invest in coaching. Annual spending on coaching in the U.S. Is estimated at roughly $1 billion”.
- Harvard Business Review
“Recent studies show business coaching and executive coaching to be the most effective means for achieving sustainable growth, change and development in the individual, group and organization.”
– HR Monthly
“A major benefit of coaching is having someone who helps you see your strengths and weaknesses and uses them to accomplish your goals.”
– Minneapolis Star-Tribune
- The Hay Group research indicates between 25% and 40% of the Fortune 500 now use executive coaches. And here in Australia, 17 of the top 25 ASX listed companies have an executive coaching or mentoring program.
- Leadership Management Australia, a business training organisation, found leadership coaching was beneficial in 95% of cases in a 2001 study of the Australian market.
- A US public service agency experience found training alone delivered a 22% improvement in productivity, whilst training coupled with coaching delivered an 88% improvement.
- And a much quoted extensive study by the US Manchester Consulting Group found the average return on investment (ROI) for executive coaching was over 500%
A 2001 study on the impact of executive coaching by Manchester Inc. showed an average ROI of 5.7 times the initial investment or a return of more than $100,000 - according to executives who estimated the monetary value of the results achieved through coaching*.
Among the benefits to the companies that provided coaching:
- Productivity (reported by 53% of executives)
- Quality (48%)
- Organizational strength (48%)
- Customer service (39%)
- Reducing customer complaints (34%)
- Retaining executives who received coaching (32%)
- Cost reductions (23%)
- Bottom-line profitability (22%)
Among the benefits to executives who received coaching were improved:
- Working relationships with direct reports (reported by 77% of executives)
- Working relationships with immediate supervisors (71%)
- Teamwork (67%)
- Working relationships with peers (63%)
- Job satisfaction (61%)
- Conflict reduction (52%)
- Organizational commitment (44%)
- Working relationships with clients (37%)
*The respondents were executives from large (mostly FORTUNE 1,000) companies who had participated in either "change oriented" coaching, aimed at improving certain behaviors or skills, or "growth oriented" coaching, designed to sharpen overall job performance. The programs lasted from six months to a year. About 60% of the executives were ages 40 to 49 -- a prime age bracket for career retooling. Half held positions of vice president or higher and a third earned $200,000 or more per year.
A 2001 study MetrixGlobal to determine the business benefits and return on investment of for an executive coaching program, found that:
"...coaching produced a 529% return on investment and significant intangible benefits to the business, including the financial benefits from employee retention boosted the overall ROI to 788%."
A major research study found that 43% of CEO’s and 71% of the senior executive team reported that they had worked with a coach. 92% of leaders being coached say they plan to use a coach again. Both indicators provide a strong endorsement of coaching.”
-FastCompany.Com, June 2007
“Recent studies show business coaching and executive coaching to be the most effective means for achieving sustainable growth, change and development in the individual, group and organization.”
– HR Monthly