Applying ROI (Return on Investment) calculations to coaching not only proves the value of coaching initiatives but also helps HR professionals align development efforts with strategic organisational goals.

More generally, quantifying the change brought about by development initiatives – be they training, coaching, mentoring or other – is a step that is often overlooked. It is not uncommon to see a development decision for an employee or a team left without any form of follow-up once the development event has taken place.

The most optimal approach is to consider development as a process among other HR processes or, more broadly, within the organisation’s processes. This involves defining the objective upstream (your “why”, what do we want to achieve with this development initiative?) and observing the effects downstream (to what extent has the chosen development initiative contributed to the desired change described by the objective?)

This may seem obvious, but in practice, more often than not, people move on after training or coaching, thinking that new knowledge is acquired once and for all through training or coaching. And we’re happy with that.

The reality is that without an action plan or support following the development event (which we’ll talk about in a future article), the new knowledge doesn’t take root, and worse still, it evaporates, which is hardly conducive to the formation of new, more effective habits. In short, no lasting change.

HR professionals, on the other hand, have a whole range of tools at their disposal to provide a structured, factual and compelling case for the ongoing investment in people development while also evaluating the effectiveness of their people development decisions.

Here are a few ideas to help inspire you in the case of coaching, more specifically.

Maximizing the Value of Coaching

• Set a Specific, Measurable Goal: articulate an objective for the coaching initiative that aligns with key HR and strategic goals
• Link Coaching Outcomes to HR Key Performance Indicators (KPIs) that will serve as benchmarks for measuring success
• Use Baseline Data: establish a baseline by collecting existing data before coaching begins, both quantitative and qualitative
• Implement Regular Check-Ins with the coach and the coachee to assess ongoing progress, adjust the coaching plan if needed and keep all parties accountable
• Convert the Outcomes into Financial Terms by calculating the cost savings or revenue generation tied to improved performance or higher engagement
• Present Coaching ROI in a Strategic Context: position the results within the broader business context, like company culture, innovation, or competitiveness in the market

Targeted development leads simultaneously to personal growth and measurable business outcomes. It would be such a waste of resources – time, money, co-workers engagement,…- not to integrate these results into the calculation of individual and organisational performance.

An invitation for you:

What can you start doing to integrate the ROI of coaching in your HR practice? How will you approach it? What resources are available to you straight away? What resources do you need to acquire?

Let’s work together to strengthen your human skills, enhance your self-awareness and drive your growth. Learn more about your Talent Advisor’s coaching and training programs on the website or drop us a line: info@yourtalentadvisor.be