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6 ways coaching in the workplace can supercharge performance (proven by data)

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Summary: Coaching in the workplace can truly transform teams. Learn how to elevate performance and unlock potential with these six data-backed strategies.

When it comes to business, it’s a fiercely competitive world out there. Many companies are starting to realize the value coaching gives to their organizations.

It helps them develop talent, navigate complex challenges with agility and resilience, and pushes them to excellence. And there are some eye-opening stats to prove it.

With coaching in the workplace on the rise, explore how to ramp up productivity and employee engagement and nurture future leaders.

What is coaching in the workplace?

Coaching in the workplace is a structured process where a coach assists employees in enhancing their performance and achieving their objectives within an organizational setting.

To illustrate this, let’s picture an organization, buzzing like a hive, full of talented folks. But there’s a snag: They’re finding it hard to fully tap into their potential. It’s like having all the pieces of a puzzle but not quite seeing the full picture.

Now, let’s add a coach to the mix.

Mentoring and coaching in the workplace can unlock individual and team potential to achieve organizational goals. The coach can identify strengths in employees and empower them to take ownership of their professional growth.

On a macro level, some coaching in the workplace examples are cultivating a culture of continuous learning, clarifying the company’s vision, and finding the bottlenecks for faster business growth.

Why is coaching in the workplace important?

Organizations that want to stay ahead of the curve need a culture that’s all about growth and employees who are top-notch. Coaching helps them get there by helping their employees get crystal clear about their roles, align their ambitions with the company’s vision, and acquire the skills they need to perform at their best.

What’s more, it functions as a mirror, helping employees reflect on themselves, understand their emotions, and build resilience to change and stress. It encourages them to dig deep, which ultimately leads to a more engaged, proactive workforce.

This is particularly important when you consider how diverse our workplaces are becoming. Coaching offers a customized approach to development that supports diversity and inclusion. It enables every employee to grow and flourish in a way that suits them.

What the stats say

The International Coach Federation (ICF) conducted a study and found that 86% of companies not only made their investment back but also saw additional returns. Additionally, 19% reported a return of over 50%.

This stat speaks volumes about the wide-ranging benefits of coaching, from driving productivity and fostering team spirit to developing leaders and sparking innovation. 

Another compelling study conducted by a Fortune 500 company sheds light on the impressive return on investment (ROI) of executive coaching. According to their findings:

  • A considerable 77% of participants reported that coaching had a significant impact on at least one key business metric.
  • There was an upward trend in overall productivity, employee satisfaction, engagement, and quality, indicating the far-reaching effects of coaching.
  • Most impressively, executive coaching yielded an astounding 788% ROI, proving its exceptional value within the corporate landscape.

When to use coaching in the workplace

Coaching methods in the workplace are diverse, just like the outcomes they can deliver. Let’s explore six instances where you can use coaching when working with companies and their employees.

1. To improve productivity

When we talk about productivity in the workplace, it’s more than just racing against the clock. 

Sure, it’s about accomplishing tasks and meeting goals. But it’s also about delivering quality work and fostering a workspace where people can perform at their absolute best. 

Especially today, with market trends shifting at the speed of light, productivity isn’t just a nice-to-have; it’s a must.

Coaching can help employees understand their tasks better, level up their goal-setting and problem-solving skills, and ignite the fires of motivation. It can also identify roadblocks in the workflow, streamline processes, help with conflict resolution, and motivate employees to take full charge of their roles. 

The result? 

Less absenteeism, lower turnover, and a work environment where everyone is primed to deliver their best—all of which lead to a significant surge in productivity.

Case in point: the ICF conducted a study involving several organizations across various industries. An impressive 86% of these businesses reported that they made their investment in coaching back, primarily due to a boost in productivity.

Some companies even saw returns that exceeded their original investment, cementing the fact that coaching isn’t an expense but an investment—one that pays dividends in workforce development.

These findings hammer home the fact that coaching isn’t just good for individuals; it brings real, tangible benefits to organizations. It’s an essential ingredient in any forward-thinking company’s productivity recipe.

2. To boost employee engagement

Employee engagement is a buzzword in the workplace, stretching far beyond mere job satisfaction. 

It paints a picture of employees who are more than content with their work; they feel a strong bond with the organization, a commitment beyond the paycheck. These engaged employees often outshine their peers in productivity, loyalty, and service. 

Why? Because they grasp their role within the broader context of the company’s goals.

So, how do you cultivate this engagement? Coaching.

It introduces the concept of personalized development plans, zeroing in on individual strengths and weaknesses. This tailored approach can kindle a sense of ownership and commitment. And as any skilled coach knows, listening to employee concerns, guiding them in setting achievable goals, and equiping them with the necessary tools can be a game-changer. 

Through this process, coaching can foster a deep-seated sense of purpose, enhancing engagement.

Gallup’s extensive research solidifies the bond between coaching and employee engagement. The results? Employees who affirm they’ve had meaningful discussions with their manager about their goals and strengths in the past half a year are 3.5 times more likely to be engaged. 

And these discussions often take shape in coaching sessions, where there’s a focused dialogue on performance and development.

This Gallup study underscores a crucial point: coaching isn’t an optional perk but an essential need in today’s workplace to foster engagement. 

By encouraging open conversations and concentrating on individual development, organizations can significantly boost engagement levels. 

The ripple effect? A host of benefits, such as increased productivity, decreased turnover, and a more harmonious workplace.

3. To help achieve goals faster

It’s no secret that goals give a clear sense of direction, purpose, and motivation. They’re like your very own GPS, guiding you toward your ultimate vision.

But what happens if you don’t have clear goals? 

That’s when things can get messy. Especially when it comes to business.

Without clear objectives, employees might find themselves lost and unsure about the purpose of their roles in the organization. This can lead to lower productivity and satisfaction.

That’s where coaching comes into play.

It offers a structured and supportive space where employees can set goals that are both realistic and challenging, aligning them with the company’s strategic objectives.

The process is like a personal workout for their career: identifying their strengths, the areas they need to focus on, and potential roadblocks. That way, employees can come up with their own tailored action plans.

Coaches can hand employees the toolbox they need to hit their targets, including accountability, feedback, and a hefty dose of motivation. They can help them break down big, intimidating goals into bite-sized, manageable tasks, making the journey to goal achievement smoother and more enjoyable.

Working with an organizational coach pays off; the ICF found that 70% of people who went through coaching reported better work performance, communication skills, and goal achievement.

With the right support, structure, and accountability, coaching can be the secret ingredient to achieving goals, which can mean better employee performance and, in the end, skyrocket the overall success of an organization. 

4. To improve leadership skills

Leadership is the secret behind successful change management and the driving force behind an organization’s success. If you want to stay ahead of the curve in today’s fast-paced business world, cultivating leadership skills is a must.

Coaching can fast-track that journey.

A coach can provide a neutral perspective and some much-needed personalized attention that can turbocharge the growth of those skills. They can help leaders spot their blind spots, buff up their decision-making abilities, and boost their self-awareness.

The coach-leader relationship is like a safe space—a sandbox where leaders can try out new strategies, gauge their impact on others, and learn from their experiences with someone cheering them on from the sidelines.

But coaching doesn’t stop there. 

It also helps leaders flex their emotional intelligence muscles, sharpen their communication skills, and become pro navigators of change—all essential skills for leading today’s complex business arena. 

These benefits have been proven by data; research conducted by the ICF found that 65% of people who got some coaching saw improved work performance, while a whopping 80% reported a boost in self-confidence. 

This shows that coaching can equip leaders with the skills they need to shine in their roles, foster a culture of continuous learning, and steer their organizations toward success.

It can help organizations breed leaders who aren’t just effective and efficient but also resilient, empathetic, and ready to guide their teams through the challenges of the modern business world.

5. To improve communication skills

Effective communication is the lifeblood of a thriving business, a powerful tool that can ramp up efficiency, bolster morale, and breed a culture of respect.

It’s more than just the exchange of information; it’s about understanding the emotion and intent behind that information. 

Listening, not just hearing. Clarity, empathy, and transparency. 

But here’s the catch: Not everyone was born a master communicator. Even the best of us could use a little help now and then. 

Coaching focuses on honing an individual’s ability to articulate thoughts clearly, listen actively, give and receive feedback effectively, and navigate difficult conversations gracefully. 

It equips employees with the tools they need to communicate with confidence, no matter the audience or the context.

And let’s not forget about non-verbal communication. 

Coaches can help employees master the art of body language, teaching them how to express positivity and openness without uttering a single word. Which translates into stronger relationships, smoother collaboration, and a workplace that truly communicates.

The bottom line is, coaching is an effective method to improve executive dialogue and communication. According to an empirical study run by the American Psychological Association, it helps well-connected teams become up to 25% more productive.

This isn’t about sprucing up our vocabulary or perfecting our grammar; it’s about transforming the way we connect in the workplace and making every conversation count.

6. To increase emotional intelligence

Emotional intelligence refers to the ability to positively understand, use, and manage your emotions to relieve stress, communicate effectively, empathize with others, overcome challenges, and defuse conflict.

It’s the secret sauce that transforms good leaders into great ones, fosters a healthy work environment, and drives meaningful and authentic connections among team members. 

But as essential as it is, emotional intelligence isn’t a skill that everyone naturally possesses.

Coaches can facilitate the development of emotional intelligence, encourage self-awareness, foster empathy, improve social skills, and guide emotional self-regulation.

Coaching provides a safe, reflective space where individuals can explore their emotional responses, challenge their assumptions, and experiment with new ways of interacting with others.

Through coaching, individuals learn to recognize and interpret the emotions of themselves and others, respond appropriately, and use this information to guide their thinking and actions.

A study published on ResearchGate demonstrated this by measuring the emotional intelligence of a group of leaders at a financial company. They found that coaching increased their intrapersonal competency, interpersonal skills, stress management, self-regard, and empathy.

This shows that coaching doesn’t just help us to navigate our work; it helps us to navigate our emotions and our relationships, both in and outside of the workplace.

The future of coaching in the workplace

The numbers don’t lie. Coaching drives productivity, sparks engagement, helps employees smash goals, and molds leadership skills like a boss. 

It can supercharge workplaces, transforming them into hubs of engagement, effectiveness, and innovation. 

Now, are you ready to create massive transformations within organizations?

Join the free Become a Mindvalley Certified Business Coach masterclass to learn the proven business coaching formula that solves any problem, delivers consistently outstanding results, and builds a lasting relationship with clients.

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Written by

Ana Sofia Espejo

Ana Sofia Espejo is a content marketing specialist for Mindvalley Coach, a content writer and editor, and a certified life coach. With more than seven years as part of the coaching and personal growth community, she enjoys creating content that enables individuals to live their best lives.
Picture of Ana Sofia Espejo

Ana Sofia Espejo

Ana Sofia Espejo is a content marketing specialist for Mindvalley Coach, a content writer and editor, and a certified life coach. With more than seven years as part of the coaching and personal growth community, she enjoys creating content that enables individuals to live their best lives.
How we reviewed this article
Mindvalley is committed to providing reliable and trustworthy content. We rely heavily on evidence-based sources, including peer-reviewed studies and insights from recognized experts in various personal growth fields. Our goal is to keep the information we share both current and factual. To learn more about our dedication to reliable reporting, you can read our detailed editorial standards.


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Fact-Checking: Our Process

Mindvalley is committed to providing reliable and trustworthy content. 

We rely heavily on evidence-based sources, including peer-reviewed studies and insights from recognized experts in various personal growth fields. Our goal is to keep the information we share both current and factual. 

The Mindvalley fact-checking guidelines are based on:

To learn more about our dedication to reliable reporting, you can read our detailed editorial standards.