When assessing the benefits of employee training and development, companies usually monitor employee performance in relation to behavioural changes, using 360-degree feedback or various satisfaction and engagement questionnaires. However, a tool for measuring return on investment in employee coaching is lacking. Let's see what such a tool could look like.
The ICF website has recently published an article recommending companies to measure the benefits of coaching using the ROI methodology developed by the ROI Institute. This methodology is commonly used to measure the return of non-capital investments, and helps companies obtain data that may help them improve their processes. It consists of ten steps.
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Identification (review) of coaching objectives based on the business needs of the company
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Creation of a coaching evaluation plan with the participation of all key stakeholders
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Collection of data during coaching implementation (employee reaction and learning data)
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Collection of data after coaching implementation (data on the measures applied and their impact)
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Determination of the impact of coaching on business results (isolation of the data from other impacts)
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Conversion of the data related to the individual measures implemented to a monetary value
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Determination of intangible benefits (satisfaction, commitment, teamwork, etc.)
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Creation of a table of all coaching costs needed to calculate the ROI
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Calculation of return on investment (net benefits divided by costs)
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Compilation of a results report for four basic groups of stakeholders: coaches, direct superiors of the coaches, sponsors of the coaching programmes and employees (team members)
How do you measure the value of coaching for your employees or clients?
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