InsideOut Development

3 Big Benefits of Building a Coaching Culture

by Pivot Point


Your company hires talented, experienced people to work in and build the business. It provides training and advancement opportunities for them. There’s an effective and targeted recognition program. So you might be asking yourself why does my organization need to build a coaching culture on top of all that?

The answer is engagement.

Consider these statistics presented by the Association for Talent Development:

  • 80 percent of the workforce who have experienced coaching say it positively impacts their work performance, productivity, communication skills, and well-being.
  • 65 percent of those in a coaching culture are highly engaged.
  • Only 36 percent of organizations offer coaching-specific training to new leaders.

In addition to engagement, coaching also improves business performance. A recent Bersin & Associates study reports that providing managers with coaching skills can provide a 130 percent increase in business performance.

Consider the following benefits of a coaching culture and you won’t have to wonder why your company needs it; you’ll be wondering why everyone’s not doing it.

Employee Engagement

HR consultant Sharlyn Lauby quotes the BlessingWhite video about the ‘X’ model of engagement saying that it creates “maximum contribution for the business and maximum satisfaction for employees.” She explains that engagement leads to higher levels of productivity, creativity, profitability, and employee retention. 

But even knowing the importance of employee engagement, employers have to work at creating and sustaining engagement. Developing engagement involves the whole company, training managers and employees to communicate well, and building engagement into company culture.

Coaching fits each of these engagement aspects perfectly, and is exactly the type of ongoing business activity that sustains engagement. Forbes Coaches Council recommends coaching to support and develop employees enabling them to better contribute to the company.

 Increased Business Performance

Coaching makes employees feel valued and improves job and career satisfaction. But a coaching culture achieves those goals and goes far beyond individual employee satisfaction by creating and supporting optimal people and business performance.

Barbara A.F. Greene of Career Partners International explains that a coaching culture accelerates organizational success by alleviating issues such as mass executive retirement, inexperienced Gen X and Y workers, and employee retention.

Greene explains that a coaching culture improves skill development, creates a leadership pipeline, and impacts three important areas that affect business results. Aligned business strategy, optimal people performance, and knowledge management all come together in a coaching culture and result in better communication, conflict resolution, trust, and engagement.

 Strengthen Manager/Employee Relationships

Dr. Janet Lockhart Jones, writing for Training Industry, explains the power of coaching to strengthen organizations. She cites Gallup research that found workplace coaching is good business in several key areas. One of the most important areas it impacts is manager/employee relationships.

When coaching comes into the picture, employees feel more engaged and more valued, and experience higher productivity and produce strong bottom-line results. Executive coaching, performance coaching, and coaching for development all play different roles in a coaching culture, but all create stronger bonds and forge better working relationships that support business goals and performance.

Pro tip: Coaching routines, coaching training, and management accountability for coaching are just a few ways to begin building coaching into your culture.

A Human Capital Institute and International Coach Federation 2017 study found that a strong coaching culture includes six criteria. Check out this whitepaper to discover the 6 criteria and learn 10 things to consider when implementing a coaching program in your organization.

Category: Employee Engagement Coaching Performance Coaching Culture

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InsideOut Development is the world leader in workplace coaching. Quite simply, we help clients hold the conversations that energize people, motivate action, and lead to better—even incredible—business performance. PivotPoint is the voice of the InsideOut Development blog. We hope you’ll find inspiration to act as a “pivot point” in your trajectory (be it personal or professional) and to fuel your everyday breakthroughs.

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