Coaching has become a staple of the modern organizational landscape. Indeed, there has been unparalleled interest in coaching the last several years, and it has been used a lot. Survey data from the Society of Human Resource Management has shown that 88% of European companies and 70% of Australian companies report using some form of coaching within their organizations. This 2005 survey of about 250 human resource managers found that 55% of organizations use formal coaching as an employee development method.
Not surprisingly, there has been a lot of attention on determining the return on investment (ROI) for coaching. One of the first studies by Manchester Consulting Group in the UK surveyed 100 Fortune 500 executives, and reported a ROI of almost six times the initial program cost. In 2009, the International Coaching Federation found that the median ROI for participating organizations was seven times’ their initial investment. Another impressive finding was that 96.2% of survey respondents said they would repeat the coaching engagement experience.