• ROI of LEADERSHIP COACHING

    Estimation Exercise

  • Let's get started! 

    Please enter name and email addresses for the coach and coachee.

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  • PART 1: COACHING COSTS

  • Next, in order to calculate ROI, we need to know how much the person or company paid for coaching, including the costs of 360s or other resources. Another significant cost is time: the client's time, their administrative assistant's time, HR's time, the time of those who contributed to giving feedback, etc. 

    Please note that at this time, our calculator only works in $USD. Please use a currency converter if necessary. 

  • *If you choose "don't know / prefer not to say", our calculations will default to the average US salary for a Senior Leader (~$193,000 for 2023)

  • Thanks for estimating the costs of coaching. 

    Click "Next" to begin Part 2, our Impact of Coaching interview.

     

     

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  • ROI of EXECUTIVE/LEADERSHIP COACHING

    Estimation Exercise

  • INSTRUCTIONS

    Reflect on the ways in which the coaching you've received has impacted you, and by extension, the ways in which the changes you've made have impacted the people around you. Skip sections that aren't applicable to you, and respond to those that are.

  • Capability

  • Many people find that working with a coach elevates their overall capability. Follow the prompts below to indicate the shift you've experienced.

  • Communications

  • Coaching often helps leaders improve their communication, for example, by helping them communicate more clearly and concisely, more influentially, more authoritatively, more empathetically, and/or with more executive presence.  

  • Source: https://www.researchgate.net/publication/349082997_Empirically_derived_guidelines_for_effect_size_interpretation_in_social_psychology

     

    Analysis of empirically derived distributions of 12,170 correlation coefficients and 6,447 Cohen's d statistics extracted from studies included in 134 published meta-analyses revealed that the 25th, 50th, and 75th percentiles corresponded to correlation coefficient values of 0.12, 0.24, and 0.41

  • Source: The State of Business Communication by the Grammerly Business Team / The Harris Poll. (2023)

    https://www.grammarly.com/business/business-communication-report --

    "the study estimates a $1.2 trillion annual loss among U.S. businesses due to poor communication—or approximately $12,506 per employee every year."

    "This study was conducted by The Harris Poll on behalf of Grammarly Business from October 14 to 31, 2022,
    among 1,001 knowledge workers and 251 business leaders.

    It also references findings from a similar study conducted from October 1 to 12, 2021, among 1,001
    knowledge workers and 251 business leaders.

     

    Previous Source (less conversative): David Grossman, The Holmes Report, July 2011

     The total estimated cost of productivity losses resulting from communication barriers per employee, per year, = $26,401.

  • Stress & Wellbeing

  • People often say that coaching helps them to reduce stress and improve wellbeing, for example by talking through challenges, better prioritization, better habits, adopting stronger stress management techniques, perspective-taking, and even re-framing stressful circumstances and events.

  • The shifts you make can impact others' stress and wellbeing, too.

  • Reference: Bui T, Zackula R, Dugan K, Ablah E. Workplace Stress and Productivity: A Cross-Sectional Study. Kans J Med. 2021 Feb 12;14:42-45. doi: 10.17161/kjm.vol1413424. PMID: 33654542; PMCID: PMC7889069

    https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7889069/

    Metric: R = -.35

  • Engagement 

  • Coaching often helps you focus your energy and identify areas of greatest impact and fulfillment. If this is true for you, please indicate your shift in engagement using the options below. 

  • Reference: Don Rheem, Thrive by Design

  • Changes you make can impact others' engagement, too.

  • Additional Areas of Impact

  • Development of Specialized Skills/Capabilities

  • Coaches often help their clients strengthen specialized skills and capabilities more efficiently than training courses or programs. Consider the skill and capabilities you've gained through working with your coach.

    Then estimate the amount of class time it would have taken you to acquire these same skills, in days.

  • Strategic Thinking/Planning

  • Many individuals find that coaching helps them to make time for strategic thinking, to develop their strategy, and/or to execute on their strategic plans.

  • Retention

  • Coaching often impacts retention, for example by helping people to see opportunities for advancement, both within their organization and outside of it. Note: Your responses to all items on this form are confidential and will not be shared outside of your coaching conversations.

  • The impact you have on others within your organization can be profound. Your interactions can directly influence whether or not someone decides to stay with your organization, or leave.

  • Primary Source: https://workinstitute.com/blog/breaking-down-the-direct-costs-of-employee-turnover/

    "What gets measured gets managed. With the estimated costs of employee turnover ranging from 33% up to 200% of the departing employee’s salary, it is imperative for organizations to understand exactly what goes into the overall cost of employee turnover." 

    Costs associated with high employee turnover
    It is estimated that employee turnover cost employers about 33% of an employee’s annual salary to find and hire a replacement. This cost comes from factors such as:

    Hiring costs including advertising, screening and interviewing
    Onboarding costs
    Costs of lost productivity
    Cost of errors made by new inexperienced employees
    Training costs
    Cost of wages for employees or supervisors to work extra shifts
    Cost to conduct a background check
    Number of days the position stays open

    Our metric: R = .5 (50% of the person's salary)

  • Work Efficiencies

  • Many people leverage coaching to work more efficiently, and/or are in positions to influence the efficiency of their team, for example, through the automation, simplification, or streamlining of business processes. All of these have real impacts on people's time, and time is money.

  • Revenue

  • For those with business development, product/service development sales, customer service, and/or marketing responsibilities, coaching can have a very direct impact on revenue.

  • What else? And how would you describe the impact of coaching?

  • Nice Work!

    Please note: Your responses to the questions in this ROI interview are confidential. If not stated clearly in your coaching agreement, please clarify with your coach how your ROI Report and/or the overall ROI metric (%) will be shared.

    With your permission, you can also contribute to emerging research on the impact of coaching across industries, levels of leadership, and important demographic factors. If you elect to contribute your ROI metrics to this database, they will be stripped of any identifying information. 

  •  Questions or concerns? Don't hestitate to contact us: info@creatingopenspace.com.

  •  Click "Submit" to receive your ROI of Coaching report

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