The ROI of Executive Coaching

Posted by jprochera on July 26th, 2012

The ROI of Executive Coaching

There is a reason why the CEOs and top executives of the world’s most successful companies have relied on Executive Coaches for years.

Whether the objective is an executive’s behavioral change, interpersonal effectiveness or aggressive organizational goals, business coaching is an investment that produces results and pays dividends.

To support you in determining where coaching fits in your professional journey and the future of your business we have gathered some of the more notable data on coaching’s effectiveness and client Return On Investment.

Retain Your Top Performers By Investing In Their Success:
Corporations believe that coaching helps keep employees and that the dollar investment in it is far less than the cost of replacing an employee.

~ David A. Thomas, Fitzhugh professor of Business Administration, Harvard Business School

The Manchester Study Shows ROI At 6X The Cost Of Coaching:

Results of a coaching poll of 100 executives at FORTUNE 1000 companies showed that “participants valued the coaching at 5.7 X the cost paid by their company. So, an $18,000 program investment generated value at approximately $108,000. -Fortune Magazine ”

Benefits to companies that provided coaching to executives included improvements in:


· Productivity (reported by 53% of executives)

· Working relationships with direct reports (reported by 77% of executives)

· Working relationships with immediate supervisors (71%)  · Teamwork (67%)

· Working relationships with peers (63%)

· Job satisfaction (61%)

· Retaining executives who received coaching (32%)

· Conflict reduction (52%)

· Quality (48%)

· Organizational strength (48%)

· Cost reductions (23%)

· Bottom-line profitability (22%)

 · Organizational commitment (44%)

· Customer service (39%)

· Reducing customer complaints (34%)

· Working relationships with clients (37%)

 Who Participated:


60% Aged between 40-49  years of age

50% held Vice President position or higher

33% earned $200k or more


Employees at Nortel Networks estimate that coaching earned the company a 529 percent “return on investment and significant intangible benefits to the business,” according to calculations prepared by Merrill C. Anderson, a professor of clinical education at Drake University. ~ Psychology Today

MetrixGlobal Sees A 5X Return on Investment and Increased Retention in Coached Leaders:

A survey of 43 leadership development participants of a Fortune 500 telecommunications firm reported a ROI of 529% which was raised to over 788% when they considered the financial benefits of increased retention.

Coaching proved to be a very effective developmental tool, producing financial as well as intangible benefits for the business such as improved decision-making, team performance and the motivation of others.

The participants, comprised of potential leaders and executives, appreciated their coaching experiences and would highly recommend coaching to others.

· 77% reported that coaching had “significant” or very “significant impact” on at least one of nine common business measures:  in particular, work output and quality of work were most frequently cited as being “significantly increased.”

· 60% identified specific financial benefits that came as a result of their coaching.

· 60% said productivity was positively impacted.

· 53% saw an increase in employee satisfaction  – viewed as both an increase in their personal satisfaction and the ability to increase that of their team members.


Kodak has initiated a coaching program focusing on employee productivity and retention for a 1,000 employee unit. The coaching results obtained to-date confirm double-digit productivity increases. ~ Society for HR Management

 98% of Participants in ICF Survey Say Their Coaching Investment Was Valuable:

The International Coach Federation conducted a comprehensive survey of the client experience of the coaching relationship  and the results coaching produced (in both business and life coaching engagements). The group consisted mostly of employed degreed professionals with over a third holding a masters degree  or higher.

The results demonstrated the unique partnership that a coach plays in the client’s life with half of the respondents reporting that they confide in their coach as much as their best friend, spouse or therapist – 12% say they confide in their coach more than anyone else.

In fact, coaches were identified as filling a number of essential support roles including:


Motivator  78.1%

Friend 56.7%

Mentor 50.5%

Business Consultant 46.7%

And teacher 41%

Results produced through coaching spanned the range from increased productivity to greater health and included the following:


· A higher level of self-awareness: 67.6%

· Smarter goal-setting: 62.4%

· A more balanced life: 60.5%

· Lower stress levels: 57.1%

· Self-discovery: 52.9%

· More self-confidence: 52.4%

· Improvement in quality of life: 43.3%

· Enhanced communication skills: 39.5%

· Project completion: 35.7%

· Health or fitness improvement: 33.8%

· Better relationships with boss or co-workers: 33.3%

· Better family relationships: 33.3%

· Increased energy: 31.9%

· More fun: 31.9%

· More income: 25.7%

· Stopped a bad habit: 25.7%

· Change in career: 24.3%

· More free time: 22.9%

· Increased profitability of business: 17.1%

· Started new business: 12.9%

· Empowered employees: 11.0%

98.5% of the respondents said their investment in coaching was well worth the money.


43% of CEOs and 71% of the senior executive team reported that they had worked with a coach. Most telling, is that 92% of leaders being coached say they plan to use a coach again.” – FastCompany.Com


To learn about how Professional Coaching has impacted the careers and businesses of Coach Joelle Inc.’s clients, read more in our Success Stories section.  

To explore how coaching can make a difference for you and your company, request a consultation by email at or call 216 320 9298.

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