Is Coaching Worth the Cost?

How to calculate your own Return On Investment (ROI)

A common question for anyone considering investing in education is if it’s worth the cost in both
time and money. This document contains information to help you make that determination. It
contains links to articles and studies that show what education has done for others, and how to
consider the impact it can have for you.


Warren Buffett famously said: “The best investment you can make is in yourself.” We agree.
We’ve worked with thousands of people from over 70 countries. Because of this experience, we
see remarkable changes in people every day. Whether you’re an individual interested in
personal development or a global business executive, live training can help you achieve your goals.


How does it work?


Executive or life coaching isn’t like coaching for a sports team. You won’t be given drills or told
which strategies to employ. Rather, your coach will help you remove limiting beliefs or blocks
that you may have and find ways to help you become your very best. They are experts at the
process of changing behavior
– which you’ll find to be vastly more valuable than someone who
tells you what to do.


Coaching sessions are a process of discovery between the learner and their coach.


What Are The Impacts?


Coaching impacts many areas of your life. Conducted by PwC Research in 2017, over 27,000
people from 30 countries were asked what areas of their life were impacted by coaching:

  • Improved business management strategies (30%)

  • Expanded professional career opportunities (29%)

  • Increased self-esteem/self-confidence (40%)

  • Improved work/life balance (34%)

  • Optimized individual/team work performance (38%)

  • Increased productivity (39%)

  • Accelerated on-boarding into a new professional role (22%)

  • Improved communication skills (42%)

  • Increased well-being (32%)


No matter what areas of your life you want to improve, coaching has a positive impact for both
personal and professional development.


According to a Manchester Consulting Group study of Fortune 100 executives, the Economic
Times reports "coaching resulted in an ROI of almost six times the program cost as well as a
77% improvement in relationships, 67% improvement in teamwork, 61% improvement in job
satisfaction and 48% improvement in quality."


They also found that, “. . . individual clients reported a median ROI of 3.44 times their
investment in coaching. Bottom line, coaching is an investment that can produce monetary
rewards above and beyond the cost.”


CBS News found that most coaching engagements fall between $500 to $2,000 per month. This
is a high-leverage activity, as a small investment of both time and money can have an
astonishing return. Most coaches and students find that between 2 and 4 sessions a month for
30 minutes is ideal. This is why so many individuals, as well as executives, use coaches to
accelerate their careers and live more fulfilling and richer lives – it’s a smart investment that
yields an incredible return.


How Do I Calculate It?


ROI is a measure used to evaluate the efficiency of an investment. It measures the amount of
return relative to the investment’s cost and is calculated by dividing the benefit by the cost and
is expressed as a percentage or ratio.


ROI = (Gain from Investment – Cost of Investment) / Cost of Investment


Many of the changes you experience from coaching are qualitative and need to be converted to
a quantitative measure to calculate the return. For example, if as a result of coaching you become
more productive, you can assign a value to that productivity. If this change results in a
promotion or new job opportunity, you can derive value from that as well.


For this example, let’s say you invest $5,000 in a coaching program. As a result, you become
more productive at work for an increased value of $3,000 per year. As a result of this increased
productivity, you receive a promotion that increases your income by $12,000 per year. You
also experience less stress which you value at $2,000 per year, and your communication skills
have improved which you value at $2,500. Your calculation would look like:

This means that your investment has returned nearly 3 times what it cost – and that’s only in
the first year. These effects are cumulative over time, so the return on your initial investment
may double or triple in the following few years. This is precisely why investment in yourself has
such tremendous leverage. It impacts every area of your life and can add tremendous value
over time.


Achieve Today takes a unique approach to coaching. We not only offer world-class coaches to
help you develop, but also industry-leading technology to make your learning easy and fit your
lifestyle. In addition to your coach, you’ll have access to the iAchieveToday platform which runs
from your phone, tablet or computer. You have 24/7 access to hundreds of courses and
thousands of videos, eBooks and audio files. Following a brief self-assessment, our Artificial
Intelligence agent, Cue, will recommend content to fit your particular needs. This combination
of people + technology means that you are never alone and always have resources at your
disposal.


We work with the biggest leaders in Personal Development. We’re here to provide quality
learning experiences that help people better themselves and the lives of others.


Join us.

 

Referenced in this paper:

https://coachfederation.org/research/consumer-awareness-study

https://www.cbsnews.com/news/top-10-professional-life-coaching-myths/
http://www.lifecoachtraining.com/blog/entry/relevance_of_return_on_investment_for_personal_coaching

Contact

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701 E Timpanogos Parkway

Orem, UT 84097

​​

Tel: 801.ACHIEVE

Free: 800.748.5199

support@achievetoday.com

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