Benefits July 30, 2004

Executive Coaching Pays Corporate Dividends

July 29, 2004 (PLANSPONSOR.com) - Executive coaching can deliver both tangible and intangible results back to the company helping to pad the bottom line with a formidable Return on Investment (ROI).
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One hundred executives who participated in coaching programs said executive coaching delivers an ROI of nearly six times the initial cost of coaching. Further, 70% valued the ROI on their coaching at $100,000 or more, while nearly 30% put the ROI between $500,000 and $1 million , according to a release by Right Management Consultants, a career transition and organizational consulting firm.

Looking past the numbers, executives said the biggest tangible business results their coaching yielded were:

  • improved productivity (53%)
  • better quality work product (48%)
  • greater organizational strength (48%).

From an intangible business standpoint, executives reported:

  • better relationships with their direct reports (77%)
  • better relationships with their supervisors (71%)
  • improved teamwork (67%)
  • better relationships with peers (63%)
  • greater job satisfaction (61%).

Most of the 100 executives who participated in the survey were from Fortune 1000 companies. Half held positions of vice president or higher.

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