The ROI of coaching and its impact on your company’s bottom line
When it comes to investing in leadership development, coaching stands out for its measurable impact on productivity, retention, and team cohesion. Research shows that companies investing in coaching programs see tremendous returns, with 86% of companies reporting that coaching recoups their initial investment—and more than a quarter of those companies seeing an ROI of 10 to 49 times that amount. Here’s a closer look at the hard numbers behind coaching’s ROI and why it’s a transformative tool for companies dedicated to sustainable growth.
Higher employee engagement and productivity
Coaching programs have been shown to lead to a 70% improvement in individual performance and up to 50% improvement in team performance, as coaches help leaders focus on clear priorities, strategies for time management, and ways to inspire their teams to work effectively toward goals. In fact, organizations with high employee engagement—which is often fostered by engaged, well-coached leaders—see a 17% boost in productivity, according to Gallup. The positive impact of coaching is often felt beyond the individual leader, resulting in more engaged teams that are empowered to achieve their goals.
Higher retention (and reduced turnover costs)
Losing a senior employee and hiring someone new can cost up to twice that employee’s annual salary—a substantial burden that companies avoid when they retain more of their workforce. Coaching not only supports leaders in their own growth but also equips them to create positive, empowering team cultures that help retain high-performing employees. In a survey by BetterUp, employees who received coaching were 20% more likely to stay with their current employer, underscoring the correlation between coaching and reduced turnover. Companies that invest in ongoing training and development like coaching experience a 14.9% lower turnover rate compared to those that do not, according to the American Management Association. Retention is key to cost savings and continuity, especially as leaders who’ve received coaching go on to support and grow other team members.
Stronger decision-making (and fewer mistakes)
Leadership coaching is known to improve decision-making by increasing leaders’ self-awareness, emotional intelligence, and perspective-taking, resulting in more strategic and thoughtful outcomes. Companies with a high level of self-awareness among leaders—an attribute sharpened through coaching—report 36% stronger financial performance, according to Korn Ferry. In addition, emotionally intelligent leaders trained through coaching make fewer impulsive decisions, reducing costly mistakes and improving organizational outcomes. The value of coaching shines through in these results, where stronger decision-making leads to not only financial gains but also a more grounded, stable leadership approach across the board.
Higher team morale
Coaching equips leaders with skills that foster collaboration and empathy, transforming team dynamics and leading to improved morale and stronger bonds. According to ICF, coaching yields a 51% improvement in team cohesion, enabling leaders to align teams effectively, facilitate productive collaboration, and achieve unified goals. Deloitte’s research reinforces that these inclusive, coaching-based leadership styles can increase team performance by up to 30%, illustrating the power of empathy and cohesion within high-functioning teams.
Stronger leadership pipeline and future readiness
In fast-paced environments, companies need to develop leaders who can navigate tomorrow’s challenges with resilience and skill. By building coaching into leadership development, organizations can cultivate a robust leadership pipeline and prepare employees for greater responsibilities. Companies that prioritize coaching in their development strategies are 1.4 times more likely to financially outperform their competition, according to Bersin by Deloitte. A BetterUp study further found that 75% of employees who received coaching felt more prepared to step into leadership roles, helping to ensure that the company is ready for growth, market shifts, and generational changes in the workforce.
Final thoughts
The ROI of coaching is evident in everything from retention rates to productivity gains, providing both immediate and long-term value. Investing in 1:1 coaching for leaders isn’t just a commitment to their personal growth—it’s an investment in a more resilient, motivated, and productive organization. The numbers speak for themselves: coaching is one of the smartest, most impactful investments companies can make for sustainable success.
