The benefits of coaching have been widely researched and accepted internationally. Personal benefits to coached individuals include: increased ability to self-reflect, leading to increased self-awareness and understanding before taking action; improved self-esteem; greater self-confidence and self-efficacy; an opportunity for self-development; greater adaptability to change and work situations; the opportunity to work with an objective person; and the opportunity to receive feedback and support to sustain behavioural change. Within a workgroup, coaching: improves communication and interpersonal relationships; provides greater role clarity and improved work performance; leads to higher levels of collaboration and job satisfaction; increases organisational commitment; and reduces turnover. In a business context at least 20 benefits of coaching have been identified in the research including: increased client retention; increased job satisfaction; greater team coherence; reduced defensive behaviour; leaders’ ability to inspire and motivate higher performance; and the creation of powerful interpersonal and team relationships.  However these benefits are less understood and accepted by Australian counterparts.

The main organisational benefits of coaching include leadership development and talent management. Leadership development is the single most important human capital issue that organisations face.  As a leadership development strategy, coaching develops leaders for the future; it helps employees improve performance and develop long-term strengths. As a talent management strategy, coaching engages and commits those individuals whose skills and abilities are sufficiently developed to progress them into other positions or opportunities within the organisation.