Research conducted on behalf of the International Coach Federation (ICF, 2015) reported that organisations with a strong coaching culture have higher revenue growth; 63% of organisations participating in the survey reported above industry average earnings in the previous year compared with 45% of all other organisations. What this means is that investing in the growth of the organisation’s human capital leads to revenue gains above and beyond the industry average, which gives the firm a substantial competitive advantage from both performance and talent retention perspectives. Taking care of business is now all about taking care of people, because a skilled and talented workforce can increase revenue substantially, and conversely, cost the organisation dearly if they leave.
Coaching direct reports is a proven method of increasing performance and retaining talent. When employees are coached, their learning needs are personalised and they feel they are a valued member of the organisation. Managers have taken the time to get to know them as people, not just as employees. Their strengths have been identified, and plans are underway to utilise these strengths. Within the team, managers “mix and match” the various skills possessed by group members to create a dynamism that didn’t exist before. As a result the whole team buzzes as they engage in activities that have meaning and purpose. Team members are enthused and motivated to get to work and give their best all through the day. They are committed to the organisation and want to do their very best to achieve the organisation’s goals and objectives.
How do you retain talented and motivated employees in your organisation and keep them engaged and committed to the organisation’s agenda? Embracing coaching as an essential managerial skill is one proven way of achieving higher performance, higher employee engagement and higher revenue growth.