The executive coaching industry is becoming increasingly dense and demanded, which means the chances of an aching business to hire a coach who can actually help them is shrinking with time.
Fortunately, researchers from the Harvard Business Review mapped out what the market consists of today, an effort that could provide executives looking for a second, informed opinion an accurate read on what is out there.
Here are the survey’s major findings:
- Almost half (48%) of businesses engage executive coaches for the purpose of grooming employees with high potential or assisting in transitions. Only 12% dedicate their efforts in corrective action, while 26% are simply there to act as an advisor. According to executive coaches from Activate Group Inc., an agency based in Miami, companies have no reason to hire a coach for the sole purpose of getting delinquent leaders out the door, as it is an act superior employees should just do outright.
- The median cost of executive coaching is about as high as a top Manhattan psychiatrist’s hourly rate: $500. This makes a proper selection even direr, as a hired business coach must be able to provide valuable insight and spark positive change to the business as well as the manager’s personality.
- Speaking of personality, companies rarely (3%) hire coaches to guide their executives through life problems. But work issues do tend to stem from a person’s struggles out of the office, which is why 76% of executive coaches report dealing with an executive’s personal issues anyway.
Business coaching as an industry is far from an inflexible one. As many as there are executives in need of guidance, a number of coaches are willing to impart knowledge however specific or comprehensive an approach they may take. This is where the selection process for executive coaches tends to come to a head, since business have to get their pick right the first time around, lest they spend a considerable amount of their time and money on what was ultimately a fruitless engagement.