The workplace is changing fast. As contract cuts and layoffs ripple through both the public and private sectors, even seasoned leaders are feeling the strain. Many are seeking support to navigate the turbulence.
But with shrinking budgets, an uncomfortable question has been pushed to the surface: Is leadership coaching really worth it?
First, it’s important to understand what executive coaching brings to the table. We all know that leaders are critical to employee and team performance, but who is helping the leaders become more effective at work?
The best coaching harnesses underutilized natural strengths and builds the mindsets, behaviors and soft skills that leaders need.
There’s only one answer – leadership coaching. Working directly with executives, leadership coaches co-create an overarching vision for workplace culture that is based on client feedback. From this, they will then recommend frameworks, approaches, and program roadmaps to achieve specific leadership goals, be that increased communication, higher productivity or higher employee retention.
The best coaching harnesses underutilized natural strengths and builds the mindsets, behaviors and soft skills that leaders need to increase their relevance and impact in today’s workplace.
The meteoric rises of Amazon, Google and Microsoft are often cited as textbook examples of coaching done right. Jeff Bezos and Bill Gates have both credited outside counsel for helping them navigate high-stakes leadership moments. It’s no surprise, then, that nearly 90 percent of executives report a significant return on investment from executive coaching. Here are three reasons why:
Talent x investment = strength
As codified by Gallup, ‘talent x investment = strength’ is a rule of thumb for increasing performance in business, and executive coaching is no exception. Leadership coaches turn talents into strengths by investing time and effort, supplementing existing strengths with newfound knowledge and skills.
Sometimes, an executive may even have a strength – like verbal communication or the ability to share constructive criticism – without even knowing it, and the executive coach is there to bring it out of them.
Does executive coaching work? Absolutely – and the ROI proves it.
The results are profound. From executives to those they manage, people who use their strengths every day at work are more engaged and more productive. They are also more likely to stay with their current employer and climb the ranks, gaining more and more responsibility over time. Coaching and employee retention are inextricably linked, making it easier to build and maintain a healthy workplace culture.
Mental health benefits
Speaking of health, coaching isn’t just about making better decisions in the boardroom. It is also a powerful tool for addressing mental health.
Nothing affects employee mental health more than their leader. Research from The Workforce Institute has shown that leaders impact employees’ mental health more than doctors or therapists and on par with spouses or partners. Three in five workers say their job impacts their mental health more than anything else. Poor leadership is a clear driver of poor mental health, while strong leadership creates safety, purpose and resilience.
Without crossing into therapy, coaching helps leaders reduce stress, build resilience and be more present and engaged – benefits that ripple outward to their teams. For example, a key driver of C-suite stress is isolation. Over half of CEOs report feeling lonely in their role, and 61 percent say it affects their performance.
Leadership suffers when leaders feel alone. Coaching offers what few others can: A trusted advisor who listens, challenges and helps leaders grow. It brings collaboration into roles that can otherwise feel solitary.
Measurable, actionable data
How do we know that coaching improves wellbeing and cascades out to improve others’ wellbeing as well? It can’t just be guesswork.
At Churchill Leadership Group, we use an ROI estimator that tracks changes in wellbeing, among impacts on communication, efficiency, engagement and other metrics.
Leadership suffers when leaders feel alone. Coaching offers what few others can: A trusted advisor who listens, challenges and helps leaders grow.
ROI metrics indicate that coaching routinely reduces stress, improves engagement and retention, increases efficiency, and strengthens communications and strategic thinking, while accelerating the development of specialized leadership skills. The financial impact often adds up to hundreds of thousands of dollars. At scale, that becomes a powerful business case.
Based on global research and my own experiences, the numbers don’t lie. Managers who receive strengths-based feedback see a 12.5 percent increase in productivity, leading to 8.9 percent greater profitability within their business units. They are naturally more likely to be successful as leaders than those who do not receive strengths-based feedback, with their teams reaping the benefits as well.
But this only happens if coaching’s impact is measured. We use empirical evidence, not just anecdotes.
So does executive coaching work? Absolutely – and the ROI proves it.
