When organizations pay to coach their leaders – what’s the ROI of Executive Coaching?

What’s the real ROI of Executive Coaching?

You know, we often get questions from senior leaders in organizations like…

“I know coaching is good for the individual being coached, but what’s in it for our company?“


“I hear of other companies paying for their team to be coached – is that just an executive perk?”

But in fact, executive coaching not only helps the person being coached, it brings enormous benefit to the company too.

A study by Hecht Harrison (a global recruiting company) found the top five reasons why companies provide coaching to their leaders:

  • For leadership development—70%
  • For skill development or style differences—64%
  • To retain top talent—40%
  • As part of management succession planning—34%
  • To ensure success after promotion or with a new hire—30%

From “How Is Coaching Used in Your Organization?”

– Lee Hecht Harrison

Another well-known study in the Manchester Review surveyed 100 executives from Fortune 1000 companies, who had participated in coaching.

The execs were:

  • 30-60 years old
  • 34 women, 66 men
  • 50% of them holding VP or higher jobs
  • 28% earning in the low 6 figures
  • 19% in the mid six figures

They also interviewed, where possible, the executive’s’ boss and the HR Director.

The Manchester Review study found the average return on investment (ROI) from coaching was nearly 5.7 times the cost of coaching. In other words, for every $1 they spent on coaching they gained nearly $6 in savings, benefits, efficiencies, etc.

Execs in the study confirmed tangible and intangible benefits to their companies, including:

Tangible Benefits

 Source: The Manchester Review

Intangible Benefits

Source: The Manchester Review

Since the Manchester study, numerous other organizations have quantified the ROI that organizations have found through coaching. An ICF Study found it was, on average, 7x the price of the coaching.

A Harvard Business Review study of companies that spent aggressively on employee development (How’s Your Return on People?) found that each outperformed the S&P 500 by 17-35%.

Of course, by looking at the financial ROI we may have a tendency to overlook some intangible benefits to the company that often are crucial.  

  • Leadership can be lonely. A trusted advisor outside is a big help when times are tough — ensuring a leader had a thinking partner and trusted confidante when they are leading others through difficult times can bring almost immeasurable benefit.
  • Coaches typically work on the leader’s most pressing challenges– one of the reasons the ROI of Executive Coaching is so much higher with coaching than most training and development is that it is customized.
  • Focus. A great coach cuts through the noise of 1000 emails and competing priorities to help the executive find the 2-3 levers that will have the most impact on results – theirs and the company’s.

Coach’s Questions

If you’re a leader looking to grow, how might you approach your company for support so 2017 is your best year yet?

What investments do you need to make to boost your success and your team’s success? What’s that success worth? What’s the cost of not succeeding?

What exactly is executive coaching – and could it be right for you?

It’s pretty much the standard question in our culture when meeting someone for the first time – “So, what do you do?”

I find my short answer, “I’m a Certified Executive Coach,” draws some curious and interested looks and I tend to fill in the details with something like, “I help people who lead others in organizations to be even better at what they do. I help people lead, guide and inspire their staff, adapting themselves to each person’s needs, developing trust with colleagues, creating a strong vision and motivating others to help achieve it.”

Essentially I help them, their team and their organization become more successful.

Sure, sometimes that doesn’t clear up the confused look but it often leads to a LOT more interesting questions.

Through the course of many of these conversations over the last few years I’ve noticed a lot of folks, once they get a better understanding of WHAT a coach does and a little bit of HOW we do it, their next query is usually along the lines of, “Would you be able to help with X?” and sometimes my answer is “absolutely” but sometimes it’s “hmmm, coaching might not be the right solution in that situation,” and I offer them some other ideas they might pursue.

You might be surprised to hear me, a coach, and owner of a coaching company, tell an interested potential client that executive coaching might not be right for them. But, you see, we not only love working with leaders and earning a living from that – we love working with leaders when we can truly help them boost their success.

We get rave reviews from our clients and if I were to be completely honest – I freakin’ love that. I love knowing we help good leaders become GREAT leaders and we help strong teams become EXTRAORDINARY teams.

I love hearing astonishment and delight from clients when they realize how much better things have become for them and their organization, with our help.

I love that 94% of our clients over the four years we have been in business, have either renewed with us and/or referred their friends and colleagues to us.

If we were to push coaching, when coaching might not be the right fit, that wouldn’t be the case.

So maybe you’re wondering, is executive coaching a fit for you or a colleague right now?

Or, “How much does it cost, and will I get my money’s worth?” Sure, you can always click on “Contact Us” up above, or click on my email address at the bottom of this page and you will reach me directly and you can ask those questions.

But I know for myself, I feel like if I send an email, I’m going to be “sold to” and I don’t want that.

So, we’ve come up with a way that you can test the idea of having a coach, without feeling the pressure of calling me – you can do it in your own time with no obligation of any calls.  What am I talking about?

Our new online fun and engaging quiz – Is Coaching Right for Me? You can take the quiz online, in about 3 minutes and you will receive a customized recommendation – not just a “yes, you should get a coach” email but in fact, an honest, heartfelt response of whether it is or isn’t a good option for you right now.

If executive coaching is a good fit, our email will tell you what you might do about it.

If it isn’t we’ll also tell you what you might do about it – what else might be worth trying without us.

Give it a try – CLICK HERE to take the quiz.

Coach’s Questions

What might get much better if you had an executive coach? Where are you holding back in your career and your team, that might be overcome with a coach? How will you know what you might be missing out on, if you don’t check?