"General Electric, Sony and Johnson & Johnson use coaches. Ernst & Young will spend $2 million this year on them. Hewlett-Packard ... spend(s) a lot of time finding coaches for hundreds of employees." (Forbes Magazine, March 6, 2000)

Conclusion: Coaching is rapidly becoming a standard tool for increased performance, results, and employee satisfaction. Top companies know that coaching unlocks the doors to greater profitability.

Conclusion: Every CareerLab coaching engagement produces business results that you will be able to measure against your investment. Specific, actionable results, measurable outcomes and, progress reports are an integral aspect of the coaching process. Although strong case study results have been available for over 10 years, this new study provides a benchmark for companies to integrate coaching into their financial planning process. What would a 5% increase in productivity or sales mean for your bottom line?

"A new employee is at 50% productivity for their first 3 to 6 months on the job." (Gartner Group Survey)

Conclusion: Most companies haven't calculated the true costs of hiring new employees or the impact of lost productivity for getting employees up to speed matched against production cycles-easily 150 percent of their annual salary for mid-level managers. Coaching brings focused action plans and early "course correction" to the critical first few months of a new employees' tenure. Coaching in the critical first weeks and months on the job can ensure a smooth assimilation into the company and a clear flight-plan for breakthrough performance. A coaching program that begins on Day 1 acts as an insurance policy to ensure quick results AND lasting success from new employees.

"Over 80 percent of 700 employees surveyed in 1999 said that their boss was a "lousy manager," up a third from 63 percent just two years ago." (Delta Road, 1999 Research Results of over 700 employees)

Conclusion: This research is not surprising considering that most managers have no experience or training in dealing with our new economy workforce, where workers rule due to the tight labor market. Bad management is a leading reason why employees job ship. Research shows that over a third of the employees surveyed plan to change jobs in 2001. The good news is that the research also points to the solution. Almost as many employees who said they have a lousy manager say they would consider staying in their current position if their boss knew how to be a mentor, not a manager.

"Turnover of IT employees averages just below 16%, but some companies in the study reported turnover rates as high as 35%. The average time reported for filling an IT position was three months. Twenty-eight percent of companies reported at least 10% of their high tech positions were vacant." (Hewitt Associates Press Release 7/29/99)

"92% of companies interviewed believe employee hiring and retention is their number one problem for years to come, but only 18% of them plan to invest in programs to improve employee retention. " (DeltaRoad Research results, 1999)

Conclusion: Coaching for retention provides a superior ROI and delivers a competitive advantage.

"Allamerica, the $ 2.8 billion financial services company, used coaching as a means of improving retention among their 850 person IT staff. They saw turnover fall to 8% in just one year." (So You're a Player. Do You Need a Coach? Fortune, February 2000)

"This year, Cisco's turnover rate was 8.75%, compared to an average rate in Silicon Valley of 12-15%. I believe that coaching has had a lot to do with these results." (Cisco employee and corporate coach Dottie DeSelle, Today's Coach, December 1999)

Conclusion: Coaching is a powerful tool to increase retention and ensure productivity results, especially in industries where losing a key player may jeopardize the success of a project.

Using the 150% salary calculation as an average cost to replace a mid-level employee, Cisco's coaching saved the company somewhere between $96 and $275 million. (Assuming a $ 50,000 average salary. Annual savings with an expected rate of 12% = $96.8 million. With an expected rate of 15% = $186.2 million. With an expected rate of 18% = $275.6 million.)

Executive coaching provides an insurance policy that challenges employees to invent and execute how they will succeed at their job-the kind of challenge and opportunity that top-flight employees crave. Employers who can offer this kind of experience will win the war for talent-and find themselves in the enviable position of keeping high-performing people who drive revenue and innovation.

Conclusion: As this example shows, a lowered turnover rate leads directly to increased profits. CareerLab coaching programs allow new employees to leap from the starting gate with a plan for success--focused action plans, results to meet, and the resources to identify and overcome barriers to success.

Conclusion: Coaching is a successful strategy for increasing revenue, especially in high-technology and high-risk companies, where the ability to invent creative solutions in an environment of change is a do-or-die necessity. Coaching supports an environment of win-win negotiation and individual accountability to produce results. An executive coach provides an additional resource focused on performance results that will net an increase to the bottom line. Even a modest increase in productivity can reap revenues well in excess of the coaching investment.

Conclusion: These results clearly link what is common business knowledge-investing in employees with meaningful benefits, such as professional development, correlates to greater job satisfaction. Satisfied employees are more likely to go the extra mile translates into shareholder value.

"With the use of an executive coach, the New England branch of Met Life experienced a sales boost of 60% by the end of the year."

"An AT&T sales force had a revenue growth of 16% by the end of the year." (So You're a Player. Do You Need a Coach? Fortune, February 2000)

Conclusion: Coaching programs have a demonstrated powerful impact on sales results-CareerLab coaching creates customized success plans that focus on each person's strengths, and create a culture of challenge, action, and results. Increased sales results translate into greater bottom-line profits.

"Chris Mills, Vice President of Mills and Associates, a business brokerage, says that he has had a 50% increase in income and is building a business with the help of his coach.

Colleen Mangeot describes her own experience of having a coach when she was in corporate sales, "When I hired my first coach it was a stretch financially, but when my sales increased by 200% AND I was loving my life, the fee became a drop in a bucket." (Dayton Business News "Executive Coaching Gets Results" by Jo McDermott, February 2001)

Conclusion: Small-to-medium sized business are perfect laboratories for showing the impact of coaching on a company's bottom-line-simply because a smaller scale and fewer variables to control makes assessing the impact of coaching easier to observe. But what all companies share is a need to measure expenses against profits-results show that coached employees perform at a higher level-and contribute increased company performance.

To discuss any of our services, contact Bill Frank, President/CEO.
Bill Frank: 303-790-0505 wsfrank@careerlab.com.
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