Managers as Coaches: Elevating Performance, Retaining Talent

One of the best-kept secrets of innovative companies is the time and resources they devote to turning their managers into coaches. They do this not for reputational reasons or because it sounds good to say that the company offers coaching programs to attract better talent but because the data shows that implementing these programs positively impacts the company’s numbers.

A study by Metrix Global has shown that executive coaching has an ROI of 788%. The International Coaching Federation expands on this statistic by showing that such programs increase individual performance by 70%, team performance by 50%, and organizational performance by 48%.

Gallup, which has studied the impact of managers as coaches in recent years, found that outstanding managers continually develop and position the talent they mentor. In addition, employees who are properly coached increase their sales by 10 to 19% and their profits by 14 to 29%.

Furthermore, managers have an outstanding impact on attracting and retaining talent. Gallup's "The Manager Experience" report surveyed hundreds of managers and employees over five years and found that 52% of departing employees say their manager or company could have done something to keep them from leaving. In addition, employees coached by their managers based on their strengths are more than twice as likely to stay engaged.

Despite the wealth of data available today to support the thesis that managers should integrate coaching elements into their practice, it is estimated that only 1 in 10 people have the talent to manage. Furthermore, 82% of the time, organizations fail to select candidates with the right talent for the job. 

Moreover, barely half (54%) of managers feel confident in their coaching abilities, and less than a quarter feel they get adequate support from HR.

In my experience, the first hurdle companies encounter regarding training programs to develop the coaching skill set in their managers is this question: How much will this cost me?

However, the real question should be: How much could it cost me not to do it?

At Collective, we have been working with executives and through their organizations for nearly a decade. They commission our customized corporate training programs tailored to their needs, and we have repeatedly proven how leadership skills can be taught and strengthened. This quickly leads to cultural change, building high-performing teams, and ultimately achieving business goals together.

Coaching: A Daily, Repetitive, and Effective Practice

Herminia Ibarra, an expert in organizational behavior, and Anne Scoular, an organizational psychologist, share in this article from Harvard Business Review that a manager trained in coaching asks questions instead of providing answers, supports employees instead of judging them, and facilitates their development instead of dictating what has to be done.

Although executive coaching requires training, there are simple and easy-to-apply recommendations summarized by Michael Bungay Stanier in his book “The Coaching Habit.” The book states a simple yet powerful premise for managers: ask more and talk less.

We mistakenly believe that coaching is about giving advice and imparting our wisdom to another person as if it were a monologue. In reality, coaching is about accompanying the mentee in discovering their potential and helping them to find answers by asking the right questions.

Here are the seven questions that Bungay Stanier recommends leaders ask their team members regularly:

1. “What’s on your mind?”

It serves as a check-in where you calmly begin to understand the coachee's concerns to help them understand the problem or need to be addressed in the conversation.

2. “And what else?”

This question encourages employees to express new insights and reflections. As Bungay Stanier notes, the first answer someone gives to "What else?" is rarely the only answer they have and rarely the best one.

That’s why asking "What else?" two or three times is a quick and easy way to uncover and create new lines of thought and possibilities. In any case, the key is to listen carefully to the answers.

3. “What’s the real challenge here for you?”

Before we look for a solution, we have to "fall in love" with the problem, which means spending a lot of time recognizing, understanding, and knowing its true causes and consequences.

We often find it challenging to recognize the real problem in a situation and usually confuse it with the first obstacle or blame it on someone else. While this may feel good, it does not help us move forward in finding a solution.

4. “What do you want?”

If the problem isn't identified, it may become clear here. When we think about what we want, we must ask ourselves if we understand what needs to change. Therefore, you may come up against an "I'm not sure" when you ask this question. In this case, it's worth defining the problem again. Otherwise, this is an excellent starting point to outline potential solutions and the steps needed to achieve the goal.

5. “How can I help?”

Although it may seem simple, the author explains that its power is twofold. On one hand, you encourage the employee to make a direct and clear request; on the other, it prevents you from assuming that you know the best way to help.

6. “If you’re saying yes to this, what are you saying no to?”

This strategic question helps the employee realize that all their ideas take up the same amount of time and resources, meaning they often need to decide what to pursue and leave alone.

In addition, this question can help individuals understand the impact of their decisions and positions on projects, employees, and processes within an organization.

7. “What was most useful for you?”

It is the quintessential closing question, aiming to summarize the conversation by identifying the key points and allowing the coachee to reflect and provide feedback to their manager to ensure that each conversation is more valuable than the last.

I encourage you to incorporate these seven questions into your next one-on-one with your team members. By doing so, you’ll uncover key challenges and foster a coaching culture that empowers everyone in the organization. Embracing this approach can enhance performance, strengthen relationships, and increase talent retention.