Wednesday, November 7, 2012
While it would seem that coaching might be an effective way to retain employees, the question remains: is it cost effective? That's what researchers set out to discover in a recent study utilizing coaching to retain employees (Edwards and Lounsberry, 2007).
The coaching solution included four team coaching sessions for new hires and up to eight individual coaching sessions for each new hire who participated in the coaching program, provided by an internal coach. The program lasted through the employee's first-year anniversary. Participants were not told that the purpose of the program was to retain them through their first-year anniversary.
Using historical trend data and isolating for the effect of the coaching program, turnover was reduced. This resulted in a 251 percent return-on-investment after all costs - including overhead and indirect costs-were captured. Moreover, employee engagement was improved by 11 percent.
This study demonstrated that coaching, provided by an internal coach, can be a cost-effective solution to retain employees.
Edwards, Lisa Ann and Lounsberry, C. (2007). Coaching for New Employees: Global Media Company in Managing Talent Retention: An ROI Approach. San Francisco: Pfeiffer.
Phillips, Jack J. and Edwards, L. (2009). Managing Talent Retention: An ROI Approach. San Francisco: Pfeiffer.
|Lisa Ann Edwards, M.S., ACC|