Many athletic coaches refer to that ‘magic moment’ when a player they’ve mentored demonstrates that they have been listening and learning—that moment when a coach knows that their work has made a difference. More business leaders are taking those same lessons to heart, understanding that coaching can positively impact the performance of individuals at every level of the organization.
Today, over 65% of employees say that the coaching they’ve received improved one or more of their professional skills and has been a vital tool to help them cope with a constantly changing work environment.[1]While there is much anecdotal evidence to support the benefits of coaching, evaluating its return on investment continues to be the number one challenge of corporate coaches.[2]
Amid an ongoing pandemic, a challenging economy, a shortage of talent with vital soft skills and highly scrutinized corporate budgets, human resources and organizational leaders need to ensure they have metrics in place to strengthen the case for coaching. Here are four ways to measure the value of coaching.
Agree on What Success Looks Like
The starting point of any coaching interaction should be to develop a clear purpose that is agreed upon at the organizational level and by individual participants.
Coaching conversations, whether in person or virtually on-demand, can help employees develop a plan and goals for the future and engage employees to gain momentum with the work. Determining specific desired outcomes will ultimately strengthen the employee’s growth trajectory and help the company achieve success.
Lynsey Kitching, Coach for ManpowerGroup’s Right Management team, notes that coaching is all about results. “It’s all about getting tangible actions that you can take forward, take back to your business, take back to your own development.”
Align with Business Goals
Goals for coaching should include helping participants determine how their desired outcomes are aligned with business goals, whether that be profitability, company growth or instilling a more inclusive culture. Coaches should help employees determine how they are connected to the organizational big picture, what key performance indicators (KPIs) will be relevant and develop qualitative and quantitative measures to evaluate the extent to which they are impacted.[3]
Global financial firm Fisher Investments kicked off their company-wide coaching by having CEO Damian Ornani broadcast his own personal career goals first. This provided transparency into organizational objectives and enabled employees to see leaders role-modelling mentoring behaviors which they are then more likely to emulate. Then, employees were then encouraged to develop their own goals in alignment and meet quarterly with managers to discuss progress. Following implementation, 99% of full-time employees set goals and 99% also completed their check-in for the quarter.[4]
Conduct Pre- and Post-360 Assessments
One of the most effective ways to measure coaching ROI is through pre- and post-coaching assessments, which are completed by both coaches and participants. Pre-assessments involve gathering insights about an employee’s strengths and needs, how they are perceived and what they need to do to achieve a higher performance level. This feedback can be gathered in a variety of ways, including automated online surveys or one-on-one interviews and helps set the stage for more impactful training that aligns with corporate goals. Those companies that combine coaching with training can increase company productivity by over 80%.[5]
CareSource, a nonprofit-managed U.S. healthcare provider, used before-and-after surveys to track their coaching program’s success, focusing on several key metrics, including confidence, accelerated transition and retention. These surveys found that 77% of respondents credited coaching with either their or their team members’ retention and 80% attributed coaching to accelerating their transition.[6]
Measure Team Impact
As organizations face increasingly rapid changes and shifting priorities, there has been a realization that coaching needs to extend well beyond the C-Suite to all levels of the company to ensure that employees are prepared with the technical and soft skills, such as the resilience, emotional intelligence and collaboration needed to succeed in today’s complex world.
Measuring the ROI of coaching becomes more complex since it involves both collective and individual outcomes, which may or may not be compatible. Coaching methods used by Right Management address these challenges with training and evaluation that go beyond executives to impact managers and employees at every level.
References
[1] Right Management Employee Data 2021
[2]https://trainingmag.com/the-effective-way-to-measure-the-impact-of-coaching/
[3]https://www.trainingzone.co.uk/community/blogs/kevin-oubridge/7-steps-to-measuring-roi-in-coaching
[4]https://trainingmag.com/training-top-125-best-practice-performance-coaching-at-fisher-investments/
[5] International Coaching Federation Data 2021
[6]https://trainingmag.com/the-effective-way-to-measure-the-impact-of-coaching/