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 and every employee individually. It is also important to promote a climate of respect and constructive dialog in order to enhance performance and experience.
Business coaching methods follow a solution-oriented and cooperative approach. If this know-how is applied in regular one-on-one meetings, this can be considered a model for internal communication.
4. Improved employee experience
Employee engagement is directly dependent on the communication skills of their leaders. A conversation conducted according to a business coaching method is characterized by open questions, time for reflection and openness. This creates a safe space for employees to express their thoughts and feelings.
5. A culture of self-leadership
By adopting a coaching leadership style, companies give their employees great learning opportunities. Business coaching is an efficient way to increase self-leadership and accountability in an organisation, as it encourages every employee to reflect more deeply on their behaviour and results and work towards improvements in an open-minded and collaborative way.
According to a study by the IJEBCM , business coaching is extremely effective for executives. It sustainably increases self-development, self-knowledge, self-confidence and self-leadership of executives.
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.