Understanding the Value of Coaching in the Workplace

Last updated: November 20, 2024

In workplace coaching, three main strategies come together to boost employee development and performance: equipping supervisors with coaching skills, utilising internal coaches, and bringing in external coaching expertise. Each plays a crucial role in fostering skill development, wellness, and high performance. The most effective approach blends all three, creating a coaching culture that harmoniously integrates these elements for maximum impact. Read on for a comprehensive guide for HR leaders considering building a coaching culture within their organisation.

Coaching Skills for Supervisors

In any workplace, a thriving coaching culture thrives among colleagues and teams. It's most effective when it becomes a part of everyday interactions, guiding staff and leaders towards peak performance through regular communication and support. This is where coaching skills for supervisors play a crucial role in nurturing this culture and maximising its benefits.

But what exactly do trained supervisors entail?

Simply caring for and developing staff isn’t enough to be considered coaching. True coaching involves trained supervisors using research-backed methods, like the GROW (Goal, Reality, Options, Way Forward) model, to foster development. This model helps supervisors work collaboratively with staff to set clear goals, assess current skills, explore development options, and create a plan for progress.

The GROW model not only promotes personal and professional growth but also enhances team management and performance. Implementing this model effectively requires supervisors to master questioning, listening, and empathy, adapting their approach to individual team members' needs.

Effective coaching in leadership isn’t straightforward; it involves balancing staff development with organisational goals and personal motivations. Quality training programs for supervisors are essential for mastering this balance and using coaching to elevate their teams.

Core Elements to Include in the Program

HR should be looking for the following curriculum elements when considering a coaching skills program for managers within the workplace:

1. Understanding the Role of a Supervisor-Coach

• Differentiation between managing, mentoring, and coaching.
• Exploration of how coaching fits into the supervisor’s daily role.
• Emphasis on the shift from directive to empowering conversations.

2. Foundational Coaching Skills

• Active listening and asking powerful, open-ended questions.
• Building trust and psychological safety with team members.
• Structuring productive coaching conversations using established frameworks (e.g., GROW Model).

3. Goal Setting and Accountability

• Techniques for setting SMART goals with employees.
• Strategies to align individual goals with organisational objectives.
• Encouraging ownership and accountability in team members.

4. Feedback Delivery and Development

• Giving constructive, actionable feedback in a coaching style.
• Receiving feedback from employees to foster a growth culture.
• Addressing performance issues through supportive coaching.

5. Emotional Intelligence and Empathy

• Training on self-awareness and emotional regulation.
• Recognising and responding to the emotional needs of team members.
• Building strong interpersonal relationships through empathy.

6. Coaching for Diverse and Hybrid Teams

• Understanding cultural sensitivities and communication styles.
• Coaching remotely or in hybrid work environments.
• Addressing challenges unique to diverse teams and individuals.

7. Coaching for Career Development

• Identifying employees’ strengths and areas for growth.
• Guiding employees in crafting career development plans.
• Supporting internal mobility and succession planning.

8. Real-World Application and Practice

• Role-playing scenarios to practice coaching conversations.
• Peer coaching exercises to reinforce learning.
• Case studies to contextualise coaching in the supervisor’s work environment.

For HR leaders, investing in a high-quality coaching skills program ensures supervisors become active contributors to organisational growth and employee development.

For a deeper insight into how leaders can act as coaches, here’s an insightful article on the subject.

Internal Coaches

In large companies, supervisors often collaborate with internal coaches and HR professionals, who are trained in coaching and career counselling, to enhance staff development. This collaboration ensures supervisors are not working in isolation but are supported by professionals skilled in navigating corporate culture and career pathways.

The rise of dedicated internal coaches is significant, with LinkedIn's 2022 survey revealing that 78% of top companies invest in coaching for employee growth, including well-being, leadership, and diversity. Internal coaches are crucial for maintaining coaching standards and measuring ROI, directly coaching within the organisation and aligning supervisors with best practices.

While not all companies have the capacity for internal coaches, those that do often combine their efforts with external coaches for a comprehensive approach. Interestingly, a trend is emerging where managers and executives are keen on receiving more coach-specific training, with many aspiring to be hybrid practitioners, offering both internal and external coaching services. This shift indicates a growing commitment to a coaching culture within organisations.

As organisations increasingly recognise the value of coaching in enhancing employee performance and engagement, HR leaders face a key question: How can we build an internal coaching capability that meets our unique organisational needs? Developing an internal coaching team can provide accessible, cost-effective coaching while embedding a coaching culture into the organisation. Here’s a step-by-step guide to getting started.

Step 1: Start by Training Existing Staff

The easiest way to begin is by identifying individuals within your organisation who show an aptitude for coaching. This could include HR Business Partners, Learning and Development professionals, or senior leaders who have a natural talent for mentoring and communication.

Benefits:

• Cost-effective and quick to implement.
• These employees already understand the company culture, values, and strategic goals.

Challenges:

• Internal staff may be perceived as biased or less confidential compared to external coaches.
• Balancing coaching responsibilities with their primary roles can lead to workload concerns.

What to do:

• Invest in accredited coaching training for selected employees. Consider programs aligned with the ICF (International Coaching Federation) or EMCC (European Mentoring and Coaching Council) to ensure quality.
• Define clear boundaries and processes to address confidentiality concerns and ensure impartiality.
• Provide supervision or access to external mentors for internal coaches to enhance their skills and mitigate bias.

Step 2: Monitor Demand and Evaluate Feasibility

As coaching demand grows, assess whether it’s time to hire dedicated internal coaches. Look at:

• The number of employees requesting coaching.
• Key areas of organisational need, such as leadership development or performance improvement.
• The impact of existing coaching initiatives on employee engagement and productivity.

Step 3: Framework for Hiring an Internal Coach

When the demand for coaching outstrips the capacity of trained internal staff, hiring a dedicated internal coach becomes a strategic investment. Here’s what to consider:

1. Define the Coaching Model

Choose a coaching model or framework that aligns with your organisational culture and objectives. Popular models include:

• GROW Model (Goal, Reality, Options, Way forward): Great for structured problem-solving.
• CLEAR Model (Contracting, Listening, Exploring, Action, Review): Useful for fostering deeper exploration and accountability.
• Solution-Focused Coaching: Focused on actionable outcomes rather than dwelling on problems.

2. Set Expectations for Utilisation

Determine how many coaching hours your internal coach will dedicate weekly:

• Full-time internal coaches typically spend 15-20 hours per week coaching, leaving time for session preparation, follow-ups, and administrative tasks.
• Ensure the coach has enough capacity to support a range of employees without overloading.

3. Establish Hiring Criteria

Look for candidates with:

• Accreditation from a recognised coaching body (e.g., ICF, EMCC, or AC).
• Strong interpersonal and communication skills.
• Experience in coaching within a corporate environment or a deep understanding of your industry.
• A balance of empathy and results orientation.

4. Address Confidentiality and Bias Concerns

Implement clear protocols to build trust, such as:

• A written code of ethics and confidentiality agreements.
• Processes for escalating sensitive issues while maintaining confidentiality.

Step 4: Measure the ROI of Your Internal Coaching Team

To justify and optimise the investment in internal coaching, HR leaders should implement a robust system to measure its return on investment. Key metrics include:

1. Employee Engagement and Retention:

• Survey coachees before and after coaching engagements to assess improvements in engagement, job satisfaction, and loyalty.
• Track retention rates among employees who receive coaching.

2. Performance Improvements:

• Use KPIs to evaluate changes in individual or team performance following coaching.
• Assess progress toward personal and organisational goals established during coaching sessions.

3. Cost Savings:

• Compare the cost of internal coaching versus engaging external coaches.
• Evaluate reductions in turnover costs or absenteeism related to coaching interventions.

4. Qualitative Feedback:

• Conduct regular reviews with coachees and managers to understand the perceived value of coaching.
• Gather testimonials to highlight success stories.

5. Manager and Leadership Development:

• Monitor how coaching impacts leadership capabilities, such as decision-making, communication, and team-building.

Step 5: Embed Coaching into the Organisation

Once your internal coaching team is operational, make coaching part of the organisational culture by:

• Encouraging managers to adopt coaching approaches in their leadership style.
• Offering group or team coaching for broader impact.
• Including coaching as part of leadership development and succession planning initiatives.

Building an internal coaching team is a strategic move that can drive employee development, improve retention, and foster a culture of continuous learning. Start small by training existing staff, monitor demand, and scale up by hiring dedicated internal coaches when necessary. By defining clear frameworks, managing confidentiality, and measuring ROI, HR leaders can ensure coaching becomes a key driver of organisational success.

External Coaches 

External coaches are key specialists in an organisation's coaching culture, working alongside supervisors and internal coaches as part of the 'three-legged stool of coaching culture.' They bring an unbiased perspective, which is crucial for addressing an employee's professional and personal development needs objectively.

These coaches are often engaged for their unique skills or when specific development programs surpass the internal team's expertise. They usually have qualifications from industry bodies and a background in psychology, making them suited for complex coaching needs.

External coaches offer objective, unbiased feedback and create a confidential space for employees to openly discuss challenges. This approach fosters improved employee engagement, personalised development, and enhanced productivity. Essentially, they're a significant asset in developing a successful, holistic coaching ecosystem within an organisation, impacting overall business performance.

Engaging an external coach can be a powerful strategy for personal and professional development. However, like any resource, it comes with advantages and potential drawbacks. Here’s a breakdown of the pros and cons to help you decide if an external coach is the right fit for your organisation or individual needs.

Pros of Working with an External Coach

1. Objectivity and Impartiality

• Benefit: External coaches bring an unbiased perspective, free from organisational politics or internal relationships. This impartiality helps coachees feel more comfortable sharing sensitive concerns.
• Why It Matters: Coachees often feel freer to express challenges or obstacles without fear of judgment or workplace repercussions.

2. Expertise and Experience

• Benefit: External coaches often bring a wealth of diverse experience across industries and organisational types. They may hold advanced certifications and specialised training (e.g., ICF, EMCC).
• Why It Matters: Their broader exposure provides valuable insights and strategies tailored to specific challenges, particularly for leadership development or strategic planning.

3. Enhanced Confidentiality

• Benefit: Coachees may trust that sensitive discussions with an external coach will remain private, fostering deeper, more open conversations.
• Why It Matters: A high level of trust ensures that coaching sessions are productive and focused on real issues.

4. Scalability for Organisations

• Benefit: For companies without an internal coaching team, external coaches provide flexibility to scale coaching efforts quickly, meeting the needs of employees across various levels.
• Why It Matters: External coaching can support initiatives like leadership development, onboarding, and team performance without requiring significant internal resources.

5. Access to Niche Expertise

• Benefit: External coaches often specialise in areas such as executive leadership, team dynamics, or managing specific challenges like burnout or career transitions.
• Why It Matters: These niche skills can provide targeted solutions that internal coaches may lack.

Cons of Working with an External Coach

1. Cost Considerations

• Drawback: External coaching is often more expensive than leveraging internal coaching resources.
• Mitigation: Ensure you measure the ROI of coaching to justify the investment and focus on the highest-priority employees or teams.

2. Limited Knowledge of Organisational Culture

• Drawback: External coaches may take time to understand the company’s culture, values, and specific challenges, which could limit their immediate impact.
• Mitigation: Provide context, access to relevant stakeholders, and a thorough onboarding process for the coach.

3. Potential Disconnect with Organisational Goals

• Drawback: If not properly aligned, external coaching engagements might focus too heavily on individual outcomes rather than organisational objectives.
• Mitigation: Work with HR to establish clear goals, align coaching objectives with business strategies, and include feedback loops with relevant stakeholders.

4. Dependency Risks

• Drawback: Over-reliance on external coaches may lead to a lack of skill development in managers or internal coaching staff.
• Mitigation: Balance external coaching with internal initiatives to build long-term coaching capacity within the organisation.

5. Scheduling and Availability Challenges

• Drawback: External coaches may have limited availability, particularly if they are in high demand or operating across multiple organisations.
• Mitigation: Plan ahead to ensure session schedules align with organisational and individual needs.

When to Choose an External Coach

An external coach is often the best choice when:

• Confidentiality and impartiality are critical.
• Niche expertise is required for specific challenges.
• You need to scale coaching quickly for short-term projects or initiatives.
• Your organisation lacks internal coaching resources or capacity.

While external coaches bring significant advantages, careful planning and alignment with organisational goals are essential to maximise their impact. By weighing the pros and cons, HR leaders can determine how to best integrate external coaching into their talent development strategies for sustainable success.

Looking for highly qualified, external coaches? Contact BOLDLY to explore tailored coaching solutions for your organisation.

Work With a Highly Qualified Coach

BOLDLY has a suite of coaching skills for supervisors programmes and career counselling for internal coaches and HR leaders. We also have the world's largest database of qualified coaches to deliver external coaching partnerships! BOLDLY collaborates with companies to build workplace coaching capability - no matter what you’re seeking. Start or continue your coaching journey with our help

If you're interested in learning more about how BOLDLY can help your organisation, we invite you to explore our website or write to us at connect@boldly.app.

About the Author:

Alexandra Lamb is an accomplished organisational development practitioner, with experience across APAC, North America, and MENA. With 20+ years in professional practice, conglomerates, and startups, she has collaborated with rapid-growth companies and industry innovators to develop leaders and high-performance teams. She is particularly experienced in talent strategy as a driver for business growth. Drawing from her experience in the fields of talent management, psychology, coaching, product development, and human-centred design, Alex prides herself on using commercial acumen to design talent solutions with true impact.