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The Human Resources Institute of New Zealand

Human Resources Institute of New Zealand (HRINZ) is the professional body for those involved in Human Resource Management and the development of people.

HRINZ represents the interests of 3,000+ individual members who make up around 45% of the known New Zealand HR market. Read More

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Impact Of Coaching

The role of coaching as a central element in human development initiatives in organisations worldwide has accelerated dramatically over the last 15 years to the degree where the coaching industry in United States is one of the fastest growing industries after IT. In this article I will point to a few central facts about why coaching is a valuable investment in today’s training of the leaders of tomorrow’s organisations here in New Zealand.

Manchester Inc. of Florida, USA recently released the results of a study that quantifies the business impact of external executive coaching. The study included 100 executives. Companies that provided coaching to their executives realised improvements in productivity, quality, organisational strength, customer service, and shareholder value. They received fewer customer complaints, and were more likely to retain executives who had been coached.

In addition, a company's investment in providing coaching to its executives realised an average return on investment (ROI) of almost six times the cost of the coaching.

Among the benefits to companies that provided coaching to executives were improvements in:

  • Productivity (reported by 53 percent of executives)
  • Quality (48 percent)
  • Organisational strength (48 percent)
  • Customer service (39 percent)
  • Reducing customer complaints (34 percent)
  • Retaining executives who received coaching (32 percent)
  • Cost reductions (23 percent)
  • Bottom-line profitability (22 percent)

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Disclaimer: This information has been written for and submitted to HRINZ for publication and has been published in good faith for the general information of HRINZ Members of the Institute. HRINZ accepts no legal responsibility for the contents of the Knowledge Base and appropriate professional advice and assistance should be sought in particular cases.

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