| |
RETURN ON INVESTMENT
Research
For many aspects of coaching and development, evidence is beginning to accrue. More research is required; however, there have been some studies such as those by the Industrial Society (now the Work Foundation) carried out a study in 2000, when they surveyed 3,000 organisations in the commercial sector (response rate 6%). The main drivers for coaching were:
- to improve individual performance, as based on their experience of coaching (81%)
- to support personal development (79%)
- to improve company performance (78%)
19% of the responding organisations had a policy for coaching, and the majority used coaching on a regular basis (79%).
51% used external coaches and 41% used trained internal coaches. In many there was a culture of line managers developing listening skills and routinely coaching the colleagues whom they line managed.
Return on Investment
Other studies (e.g. Manchester Inc 2001) showed some positive benefits, with the return on investment being 5.7 times the financial investment of the original coaching.
Two other studies (Matrix Global and Mary Beth O’Neill) have shown similar returns on investment.
Public sector
It can be more of a challenge to demonstrate return on investment in the public sector, where activity is not perhaps related to financial profit. However, these areas seem to be important:
- increased retention rates
- reduced absenteeism
- self- report improved job satisfaction
- improved leadership effectiveness
Emotional Intelligence
Evidence about the importance of emotional intelligence (by Goleman and others) is also important. The use of the emotional competencies in self-management and management of others is now starting to be used more frequently as the basis for appraisal in some organisations.
There are now tools being developed and researched to measure emotional intelligence. The researchers have found good evidence of the benefits of emotional intelligence in terms of the success of an organisation and its employees.
|
 |
 |
|
