Five Incredible Benefits Coaching Can Bring To Your Organization
Coaching has taken the business world by storm, and what used to be an exclusive service for C-Suite executives is now being used readily throughout companies to develop their employees.
I remember an instance where I was brainstorming with the CEO of one of our clients about the benefits of coaching. During this time, the term EROI, an acronym for Employee Return on Investment, came to light. Out of that session, came five game-changing ways in which coaching can increase the return on your workforce investment
- Employee Retention
A growing concern in the marketplace is employee retention. Unlike days past, today, people are holding jobs for shorter periods of time than in previous generations. Instead of employees spending decades at a company, they are spending on average 4.2 years according to the Bureau of Labor Statistics.
While there are many factors that influence this shift, companies with cultures of high engagement show 24% to 59% percent lower turnover. This represents astounding savings as that same study mentioned that the loss of an employee can cost up to 1.5 times their annual salary! On the low side, if a disengaged team would typically see 20 people leave in a year, an engaged team would only see 8-15 – ultimately adding up to a total savings of between 600k-1.4MM.
The biggest factor in employee engagement is management, which to this day remains a typical position for coaching. The study offered coaching services as one of the recommendations to support management in increasing employee engagement.
Companies that have used coaching in the past say that employee engagement is always among the top benefits they’ve seen after the fact. The EROI is incredible here, as you’ll not only see an improved workplace culture, but you’ll also save a ton of money as well.
2. Employee Development
The potential of your organization rests in the potential of your people. When your people grow, your potential grows.
One of the most common reasons we are hired to coach people is to help in their professional development. The desire for professional development also happens to be incredibly important to millennials. In a Gallup article titled, “Millennials Want Jobs to Be Development Opportunities,” they wrote:[
“Millennials care deeply about their development when looking for jobs and — naturally — in their current roles. An impressive 87% of millennials rate “professional or career growth and development opportunities” as important to them in a job…”
If you want to ensure that your team of employees remains motivated to come to work, you have to keep investing in them!
3. Employee Productivity
Productivity is going to increase once team leaders, and consequently their team members, have more clarity that allows them to understand their most important goals. This is a big deal, as 50% of employees and managers do not have a clear understanding of what their role entails.
Coaches work with employees not only to clarify their
4. Employee Selection
Our company help with employee selection through the use of EEOC compliant assessments. They can help the team go through the process of understanding the required behavioral skills, internal drivers, and competencies needed to drive production. We do this through the process of completing a job benchmark for our clients.
The behavioral skills will show whether or not the person applying for the role has the natural tendencies and abilities to do the job – and even if they don’t have the natural tendencies, they can adapt their behaviors. The key here, is to realize that the more adaptation required, the potential for increased job stress still remains.
The internal drivers may be the most important factor because this will help to show whether or not someone is a cultural fit with that specific workplace culture. Behaviors can be adapted, and skills can be learned, but an applicant who does not fit the culture raises a red flag.
Measuring one’s competencies helps to ensure that the person is ready for the position immediately. As mentioned above, skills can
5. Business-Owner Mindset
There is a big difference between an employee mindset and a business owner mindset. One goal in coaching is to help give the cleints a big picture mindset to help drive the company forward. Here are a few differences between an employee mindset and business owner mindset.
- An employee mindset focuses around working for the business, while a business owner works on the business.
- An employee spends resources to accomplish a task, while a business owner invests money on resources to fulfill a larger vision.
Once the potential benefits that coaching can offer are realized, it becomes easier to see just why more companies are hiring coaching firms to work with their employees, establish positive company cultures, and drive operational efficiency all across the board. Your company may be the best in its industry, but it can be even better with coaching!
For more information on message or contact us.