Executive Coaching Return on Investment – 5 Studies

There are many claims made about the benefits of executive coaching. In this article the summary of 5 ROI studies are listed. The studies identify returns of up to six times the cost of the original investment.

MetrixGlobal Study: 689% Return on Investment in Executive Coaching

April, 2004, study found:

• 95% of leaders who were coached made positive behavioral changes.
• 58% said they worked better with peers and team members, which seems low in my experience.
• Leaders who were coached also found positive impact on their quality of consulting and on client satisfaction as well as improvement in their promotion and retention rates.

According to the 2004 MetrixGlobal Study, the return on investment in coaching: 689%

Here’s their conclusion:
“The Bottom-Line:
Coaching has positively impacted the ability of leaders to build competencies and deliver bottom-line value to the business. While all competencies were positively impacted, leadership behavior, building teams and developing staff were especially improved. The data suggest that building these competencies led directly to positive impact on the business.

Teamwork and team member satisfaction were the top business impact areas cited by leaders. Combined, these two areas alone produced over $1.5 M in annualized benefits. Better integrating executive coaching as a centrally managed initiative with other corporate human resources initiatives and development activities could potentially further accelerate building the required competencies.

The very positive ROI for coaching indicates that any further investment in coaching will more than pay for itself. The focus of decision-making regarding the future of coaching should shift from just what the cost of the coaching would be, to focus on the kind of value that coaching can provide to the business. ”

Manchester Group Study on Coaching ROI

Executive Coaching yields return on investment of almost 6 times the initial investment in a typical coaching assignment.”

“Companies who have provided coaching to their executives and their teams have realized improvements of over 48% in productivity, quality and organizational strength.”

“Executives who have received coaching have reported improvements of over 60% in working relationships with direct reports and peers, teamwork, job satisfaction and conflict resolution.”

Price Waterhouse Cooper Global Study Findings on Coaching ROI

2008 global study – survey pool -  2,165 coaching clients from 64 countries

• 80% of coaching clients report positive change in work performance, communication skills, interpersonal skills, and relationships

• 82.7% of coaching clients check “very satisfied”

Median return of 3.44 times the investment.

Institute and Campaign for Learning Study

supported by Lloyds TSB

• 33% of respondents had received coaching themselves
• 80% believe  they would benefit from coaching/more coaching in their workplaces
• 93% believe that coaching should be available to all employees.

Coaching was perceived as great benefit in a range of areas including:

• development of task-specific skills
•  “soft skills” within the working environment

Managers responded that they wanted more support to develop personal effectiveness, emotional intelligence, assertiveness or communication skills.

Conclusion: Coaching supports “hard” and “soft” skill development

International Personnel Management Association (IPMA)

Published Jan, 2001

• Productivity increases 22% from standard training
• Combining coaching with standard training increases productivity 88%

Based on an article Written by Dr. Joni Carley

Keywords; Coaching ROI, Coaching Return on Investment, Coaching Evaluation, Executive Coaching ROI