Hiring an executive coach is an investment – and it’s one that’s well worth it. Providing personalised support, objective feedback and expert guidance, an executive coach empowers leaders to develop their strengths, propelling them – and the organisation – to new heights of success.
From significant returns on investment to stronger leadership bench strength, there are many reasons why an executive coach is a valuable investment. Here are our top five…
1. Executive coaching increases ROI
Investing in executive leadership coaching has been proven to have a high return on investment (ROI), especially in terms of productivity. According to this FMI report, 87% of respondents agreed that executive coaching had a high return on investment. The following reasons on this list will give you deeper insight into the contributing factors that make this high ROI possible.
2. Improved leadership effectiveness
Per the FMI report, 84% of respondents said that executive coaching increased leadership effectiveness. Indeed, there’s always room for improvement. In fact, the report goes on to reveal that 95% of leaders today believe they’re self-aware, when really, only 10-15% are.
Self awareness is crucial to good leadership. The bigger the gap between what a leader believes and what the reality is, the lower their influence and productivity. Working with an executive coach will bridge this gap by helping the leader:
- Face their blind spots and see the truth behind their strengths and weaknesses
- Improve their decision-making abilities and emotional intelligence
- Develop their leadership stamina and leadership influencing skills
- Identify how they can improve how they work or approach situations
As a result of all this, leaders become more effective in their roles, improving team performance and productivity. Not only will this allow the leader to realise their full potential, it will also positively influence the organisation’s bottom line.
3. An executive coach enhances goal setting and achievements
An executive coach enhances leaders’ abilities to set and achieve their goals. By supporting them in breaking down complex challenges into manageable steps and holding them accountable for their progress, an executive coach fosters a goal-oriented mindset that results in tangible improvements in leaders’ performance and accomplishments.
This could be why, according to these 2023 statistics, 63% of businesses offering leadership coaching beat their competition in terms of revenue and sales development.
4. Happier employees
Effective leadership fosters a positive work environment and improves employee happiness. When employees feel supported and valued by their leaders, they are more likely to be motivated, productive and loyal to the organisation. This reduces turnover and the associated costs of hiring new employees.
Executives will be happier, too. High-level leaders often face challenging situations that can be emotionally draining and stressful. Executive coaches are trained to help individuals navigate conflicts, manage stress, and maintain a healthy work-life balance.
In this 2023 report:
- 67% of executives reported improved teamwork
- 32% of companies reported increased retention of executives
- 63% of executives reported improved peer-to-peer relationships
- 52% of executives reported greater job satisfaction
5. Optimised succession planning
For organisations, executive coaching optimises succession planning initiatives. By investing in coaching for top-level leaders, companies can groom potential successors and ensure a smooth transition of future leadership. In fact, 48% of all executive coaches are being hired to coach on transitional leadership.
In this way, an executive coach primes talent, creating a high-performance work culture that enhances overall leadership bench strength and drives succession planning. Similarly, it empowers individuals to take charge of their careers and earn a place at the C-Suite.
In summary…
Investing in an executive coach contributes to long-term business success. Ensuring leaders continually develop their skills, gain objective feedback and achieve their goals, executive coaching is a valuable investment that yields significant returns for individuals and companies alike.
If you want to bring executive coaching into your organisation, look no further than our corporate executive coaching service. We also offer executive coaching for individuals looking to unlock their potential. To find out more about how we can help, contact our friendly team.