Facts and figures are how we find our way to the truth!
Well, here’s a truth bomb for you! 90% of business leaders could get a massive benefit from executive coaching, but 14% have not heard that coaching exists and only 1% of those business leaders will seek out a coach.
Way too soon for a truth bomb? Don’t worry, I will make things easier for you as we move forward and lay important coaching statistics out.
Coaching for entrepreneurs, CEO’s and business owners is essential for business growth.
To further our research, we’ve scoured the internet and multiple companies for various facts and figures related to coaching, and we have gathered some interesting results.
Let’s dive in!
Business and Executive Coaching
It has often been seen that organizational coaching is more targeted towards executives and senior management. According to a statistical analysis done by Monte Wyatt, http://www.montewyatt.com, the general value and return on investment of business and executive coaching have been the following:
Observable productivity increases reported by 53% of executives
Increase in quality – 48%
Increase in organizational strength – 48%
Increase in customer service – 39%
Reducing customer complaints – 34%
Retaining executives who received coaching – 32%
Cost reductions – 23%
Increase in bottom-line profitability – 22%
Improved working relationships with direct reports – reported by 77% of executives
Improved working relationships with immediate supervisors – reported by 71% of executives
Improved teamwork – reported by 67% of executives
Improved working relationships with peers – reported by 63% of executives
Increased job satisfaction – 61%
Conflict reduction – 52%
Increased organizational commitment – 44%
Improved working relationships with clients – 37%
Here are some statistics on the benefits of coaching
A survey from Clear Coaching Limited, February 2007 found that tangible benefits from coaching showed the following results for a large range of companies:
New or improved skills – 50%
Work relationships within a team – 50%
Seeing others’ perspectives – 47%
The clarity in work-life – 43%
Increased motivation – 43%
Improved atmosphere – 40%
Sales and revenue – 23%
Obtained goals – 20%
The International Coaching Federation (ICF) has surveyed around 210 of their coaching clients to find out if they benefitted from various coaching programs. The study showed that of the 210 coaching clients, around 197 were executives and business professionals, all of whom had a formal, on-going relationship with their coach. The average duration of their relationship was around 9 months. Around 80% of the respondents were graduates while over a third had Master’s degrees or higher. The result of the survey is:
70% believed business coaching is “very valuable.”
50% confide in their coach as much as their best friend, spouse, or therapist
12% confide in their coach more than anyone else.
Some of the notable outcomes of coaching were:
62.4% smarter goal-setting
60.5% more balanced life
57.1% lower stress levels
52.4% more self-confidence
43.3% improvement in the quality of life
25.7% more income
Let’s not forget sales coaching
We have gathered the following statistics from Tim Hagen, Sales Progress, who has researched coaching and training sales staff.
It has been noticed that training and coaching have led to an increase in productivity by 88% as compared to the 22% increase from training alone.
Your return on investment will increase significantly if coupled with counseling. From 22% to 88%, to be exact.
Around 45% of the sales staff coached by the sales manager rated the practice as the most effective way of reinforcing new skills in the sales team.
This research is furthered by Kevin Micalizzi, also from Sales Progress, by providing more information on the ROI in sales coaching:
Coaching explains the 17% performance difference between those who are coached and those who are not coached
For teams that received less than two hours of coaching per month, they achieve around 90% of the sales targets for the month, whereas teams that have received more than three hours of sales coaching the month achieve around 107% of their sales target.
He provides the following sales metrics impacted by coaching:
Close rates increased by 17%
Expired deals decreased by 63%
Close date changes decreased by 25%
Days since the last customer interaction by the sales department decreased by 73% thereby improving customer engagement
Other statistics that are equally important:
In a study conducted by Metrix Global, companies received an average return of $7.90 for every $1 invested in executive coaching
A study of executive coaching in a Fortune 500 firm, by Metrix Global, reported a 529% return on investment and significant intangible benefits to the business
A survey by Manchester Inc. of 100 executives, found that coaching provided an average return on investment of almost six times the cost of the coaching
An internal report of the Personnel Management Association showed that when training is combined with coaching, individuals increase their productivity by an average of 86% compared to 22% with training alone
A Hay Group study of Fortune 500 companies found that 21 to 40% utilize Executive Coaching The same study reports that Executive coaching is used as standard leadership development for elite executives and talented up-and-comers
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
Let’s face it…
It’s clear that coaching has a great deal of impact on the way organizations and people work. And the best part is that if you engage a coach now, you have a competitive advantage over others that just don’t get it.
Get an experienced coach on board and see your teams and business flourish!
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