Employees are a company's most valuable asset. However, if no investment is made in their professional development, talent will move to competitors who have recognized the value of employee development.
This is a significant issue facing HR professionals today: how do we best develop our employees? This blog post will explore how business coaching can help you grow your staff members.
Employees today expect the opportunity to grow and develop their skills at work. This is even more prominent in the younger generations: 87% of millennials believe learning and development in the workplace are essential. 59% of millennials claim professional development opportunities are extremely important when deciding whether they will apply for a position or not.
Establishing an employee development program is a critical challenge of any business. While there are many options available for career development, business coaching is the one that will yield the best return on investment. The Institute of Coaching reports that 86% of companiesfeel they recouped the investment made into coaching – plus more on top.
What is employee development?
Employee development refers to the process of improving employee performance. It takes place within any organization and requires active employee involvement. It may happen informally (when employees make mistakes and learn from them on their own) or formally (in structured training sessions).
Why is employee development important today?
In a modern, constantly changing working world, employees are permanently forced to acquire new skills. Due to its agility, business coaching is an extremely effective measure to accompany employees on this necessary development path.
What is business coaching?
Business coaching is a business and management process that supports and empowers managers, business leaders, and employees in achieving business goals. At its core, business coaching provides the tools to build greater self awareness to enhance performance and thus successful businesses. It helps employees overcome obstacles when pursuing business goals, align people with business strategies, better solve problems within an organization or prepare individuals for career transitions.
How is business coaching beneficial for employee development?
1. Improved employee retention
Employee loss is a costly problem that many companies face. The cost of replacing an employee ranges from half of to two twice of the employee's annual salary.It is obvious that a company wants to avoid these significant costs, i.e. not lose employees.
While there can be various reasons for why employees choose to quit, the most commonly cited ones are lack of personal growth opportunities, lack of communication and lack of feedback.
All these can be positively impacted by offering your employees business coaching sessions with their manager or an external coach. In the end, coaching offered to your employees will improve your company’s employee retention and prevent them from leaving your company for another.
2. Improved performance
Not only can business coaching mean your employees stay longer, but it can also help them bring more value to the table during the time they work for you. Through coaching you can help your employees develop a so-called Growth Mindset - a fundamental trait of high-performing individuals.
In addition, business coaching empowers employees to improve their own development and performance in a self-directed way. More than 70% of business coaching participants report positively on their experience. They emphasize improved work performance, more fulfilling relationships and more effective communication.
3. Constructive communication
Coaching is not only about supporting each employee individually. Also, it is crucial to promote a climate of respect and constructive dialog to enhance performance and experience. Business coaching methods follow a solution-oriented and cooperative approach. If this know-how applies in regular one-on-one meetings, this can be considered a model for internal communication.
The value of M&A deals, according to a study by the Harvard Business Review, companies that implement effective internal communication practices, such as regular coaching sessions and open communication channels, experienced a 47% higher total return to shareholders over five years than companies that did not prioritize communication. Not only that, according to another popular survey, organizations with strong communication practices experienced employee engagement levels that were 20-25% higher than those with weak communication practices.
By prioritizing constructive communication through business coaching, companies can improve employee performance and engagement and also drive overall business success in the long run. Effective communication fosters collaboration, encourages creativity and innovation, and helps to resolve conflicts and issues quickly and efficiently. In addition, coaching sessions open up opportunities for employees to work with their coaches on specific communication challenges, such as delivering feedback, active listening, and conflict resolution. By developing these skills through coaching, employees can become more skilled communicators and better equipped to handle challenging situations in the workplace.
4. Improved employee experience and engagement
Business coaching can significantly improve employee experience and engagement by providing employees with the skills and tools to communicate more effectively with their leaders. Leaders can create a safe and supportive space for employees to express their thoughts and feelings through coaching methods such as open questions, reflection, and openness.
The value of M&A deals, according to a study by Gallup, companies with high levels of employee engagement experienced a 21% increase in profitability compared to those with low levels of engagement. In addition, engaged employees report high motivation, job satisfaction, and productivity. Furthermore, those employees are less likely to leave their company.
Effective communication is a fundamental factor in building employee engagement. Employees who feel heard and supported are more likely to feel invested in their company's success and more committed to their work. By fostering constructive communication through business coaching, leaders can establish a culture of openness, trust, and empowerment that encourages employees to perform at peak levels and contribute to the company's goals. Moreover, coaching sessions allow leaders to learn more about their employees' goals, strengths, and areas for improvement. That promotes employee growth and shows a genuine interest in employees as individuals, which can go a long way in improving engagement and loyalty.
5. Thriving coaching culture for greater accountability and self-leadership
Organizations provide vital learning opportunities for their employees by adopting a coaching leadership culture and style. Business coaching is an effective way to increase self-leadership and accountability in an organization. That is because it encourages employees to think more deeply about their behavior and work outcomes and to work on improvements openly and collaboratively.
The value of M&A deals, according to a study by the IJEBCM, business coaching is particularly effective for executives, leading to sustainable increases in self-development, self-knowledge, self-confidence, and self-leadership. Also, a study by the International Journal of Evidence-Based Coaching and Mentoring found that executives who received coaching reported significant improvements in their leadership-related skills, including communication, delegation, conflict resolution, and goal-setting.
By extending coaching practices beyond the executive level, companies can create a culture of self-leadership and accountability across the organization. Encouraging employees to take ownership of their development and growth leads to a greater sense of responsibility for their actions and results, which translates into higher engagement and productivity. Moreover, coaching provides employees with opportunities for both personal and professional growth. By reflecting on their behavior and results with a coach, employees can independently identify areas of improvement and set goals by reflecting on their behavior and results with a coach. In the process, those employees can also ensure those goals align with the company's objectives. That leads to more motivated, competent, and confident employees who can better contribute to the company's success.
Business coaching for employee development has the potential to improve several areas within your organization. The coaching methodology empowers employees to grow in their roles, take more responsibility, and contribute more to the company. It also contributes to a better workplace in general, where people are healthier and happier.
The advantages of Business Coaching at a glance:
- Improved performance
- Higher employee retention
- Constructive communication
- Improved employee experience
- A culture of self-leadership
Sparrks brings you these 5 benefits in an effective and scalable way
Our work is guided by a genuine appreciation and respect for people's individuality, and we offer solutions that have an enduring, positive impact on people and their organizations. Driven by an optimistic yet reflective worldview and always maintaining a positive can-do attitude, we help businesses empower their people to build great workplaces where everyone performs at their best.
Our work is based on the latest research and it combines the convenience of a digital platform with the warmth and ease of human guidance.
Don't hesitate to book a demo if you are interested in how your business in particular can benefit from business coaching. In a 30 minute demo call we can advise you further on this subject.
FAQ: Benefits of business coaching
What is the main purpose of business coaching?
Business coaching aims to achieve desired and intentional change in an organizational context. Such a goal enables the process of moving executives from excellent to peak performance. At peak levels, effectiveness skyrockets.
How does business coaching develop employees?
Business coaching improves employee well-being, enhances communication, promotes self-confidence, encourages independent and critical thinking, reduces stress, helps planning and coordination, reduces performance gaps, facilitates adaptation to change or transitions, and so on.
How do you measure staff or employee development?
Measuring staff or employee development depends on the organization and the type of learning intervention. Some common measurements include direct discussions between managers, HR staff, and employees, surveys, questionnaires, post-program quizzes, and exams. Some measurement models are Philip’s ROI model, CIRO model, Anderson’s model of learning evaluation, Kirkpatrick’s Four-level Training Evaluation model, and Kaufman’s Five Levels of Evaluation.