What is Leadership Coaching and How is it Beneficial?

Quick look: In today’s highly competitive business landscape, organizations constantly seek ways to gain an edge. While strategies, technologies, and products play vital roles in achieving success, leadership coaching is an often-overlooked aspect that can significantly impact employee engagement, profitability, and retention rates.

Retaining talent is a top priority for organizations today, and the key to keeping top performers might be right under business’s noses: leadership coaching.

In contrast, inadequate management techniques can be costly. An astounding 84% of U.S. workers state that poorly trained managers create a large amount of unnecessary work and stress, and subpar leadership can cause low productivity, reduced profitability, high employee turnover, and decreased employee engagement.

Qualities of a good manager

Being an impactful manager requires a mix of humanity and assertiveness. According to Top Workplaces, the 15 most important qualities of a good manager are:

1. Transparency
2. Good communication
3. Trust
4. Empathy
5. Decisiveness
6. Vision
7. Accountability
8. Employee development
9. Delegation
10. Availability
11. Responsibility
12. Optimism
13. Leadership and being a role model
14. Technical skills and industry knowledge
15. Fair treatment and evaluation

And even if someone wants to lead a team, they still need to gain the skills and emotional intelligence to supervise effectively. Gallup reports that only one in 10 people have the natural talent to lead, while performance management software 15five states that 65% of managers struggle to perform and feel less prepared and more challenged than ever, reinforcing the need for management training.

Further, according to SHRM, the top five skills managers need to work on include:

• Communicating effectively (41%)
• Developing and training teams (38%)
• Time management and work delegation (37%)
• Creating a positive and inclusive team culture (35%)
• Managing team performance (35%)

Manager and leadership coaching can help organizations develop productive, well-rounded leaders by recognizing and building upon their strengths, weaknesses, feelings, thoughts, and emotions.

What is leadership coaching?

Leadership coaching is designed to improve a person’s talents and competencies to enable them to lead more successfully. This instruction can be a formal course or can occur through a mentorship. Leadership training often includes education on:

• Business coaching
• Effective communication skills
• Various leadership styles

To help leaders build their skill sets, employers should determine their strengths and how they can benefit from continued learning. Next, organizations should develop programs that fit the leader’s learning style and pace. Progress should be regularly monitored to provide support and confirm leaders are on track, and improvement should be recognized and rewarded.

8 benefits of manager and leadership coaching

Manager and leadership training has become essential for sustainable growth and long-term success as it offers many benefits to businesses, from encouraging senior-level staff to grow to continually identifying and fostering future leaders.  

1. Improved employee performance and engagement 

Gartner found that 45% of managers lack the confidence to develop their direct reports’ skills for today’s jobs. However, this professional development is important—it prompts employees to feel more supported and more valued and can lead to improved engagement and performance levels.

Managers who receive coaching more effectively motivate their teams. They learn to provide constructive feedback, set clear expectations, fairly delegate tasks, and recognize and reward achievements. 

2. Talent retention and succession planning

Investing in coaching helps managers and supervisors become the type of leaders people want to work for. Strong, empathetic direction creates an environment where people enjoy their jobs and feel loyalty to the company, which can reduce employee turnover. 

This training also can help identify high-potential employees and develop their skills for future leadership roles. By nurturing talented individuals, organizations can create a pipeline of capable leaders.

This proactive approach to succession planning provides opportunities for employees to stay with an organization longer and reduces the risk of leadership gaps when key positions become vacant. 

3. Conflict resolution and effective communication

Frequent conflict can be detrimental to companies, as it costs the organization time and effort that should instead be focused on growing the business. Coaching equips leaders and managers with the skills to handle tense situations.  

Training often focuses on communication, a fundamental part of building trust. Speaking clearly and listening and interpreting information effectively minimizes team misunderstandings. During training, leaders may also learn how to handle difficult conversations, constructively resolve conflicts, and foster a collaborative work environment.

4. Enhanced problem-solving and decision-making

With obstacles occurring nearly daily, making the wrong choice on how to proceed with a problem can have significant consequences. Leadership coaching helps managers avoid this by improving their problem-solving and decision-making abilities. 

During training, they learn to analyze situations, consider multiple perspectives, think critically, and make informed choices. This leads to more effective problem resolution, better decision outcomes, and the ability to navigate complex business challenges.

5. A stronger organizational culture

Strong leadership and effective management have a direct impact on organizational culture. Leaders who receive coaching can shape a positive work environment, promote a culture of learning and development, and foster a sense of accountability among employees. 

While culture is built in every level of the business, the board of directors, CEO and senior management team, and middle managers should hold important roles, according to Harvard Business Review:

• The board of directors should guide the definition and development of the desired culture.
• The CEO and senior managers should define and nurture the ideal culture by establishing objectives, strategies, and key results that prioritize it.
• Middle managers should deliver experiences that reinforce the desired culture.

A healthy, positive culture contributes to greater employee satisfaction and increased productivity, ultimately improving corporate profitability and success. According to McKinsey, businesses with high employee engagement rates achieved 1-4% higher operating profit margins than those with low rates.

6. Increased adaptability and change management

Technology and workplace dynamics are evolving at rapid speed, and leaders must be capable of pivoting when needed.

Coaching encourages staff to develop the necessary skills to navigate change, embrace innovation, and effectively lead their teams through transitions. Adaptability is crucial for organizational growth, competitiveness, and long-term success.

7. Development of effective leaders

Leadership coaching ultimately improves individuals’ overall performance by developing their:

• Self-awareness 
• Emotional intelligence 
• Communication skills
• Decision-making capabilities
• Strategic thinking

These skills enable leaders to confidently guide teams and reach company goals by fostering a positive work culture and inspiring employees to put their best foot forward.

8. Return on investment (ROI)

While many benefits of leadership coaching may feel abstract and hard to track, the training can also lead to tangible advantages. The International Coaching Federation found that 86% of companies that invested in coaching saw ROI in their efforts. Businesses can unlock a wealth of benefits by providing the necessary support, guidance, and development opportunities for leaders and managers.

Industry-leading knowledge and tools—under one roof

Cultivating your personnel’s leadership skills may be uncharted territory. In that case, a professional employer organization (PEO)—whose experts understand the best techniques and tools to help people grow—could be helpful.

In addition to access to dedicated HR managers, PEOs like ExtensisHR offer affordable access to platforms like 15Five, a leading performance management platform. With this technology, managers can be effectively coached and upskilled by learning how to create objectives, motivate teams, deliver results, and offer coaching and feedback to develop their staff.

15five also provides engagement surveys, feedback gathering, weekly employee check-ins, one-on-one meetings, performance trend tracking, and more, allowing business leaders to monitor managers and equip them with the right tools.

If you’re ready to discover how manager and leadership training can take your business to the next level, contact ExtensisHR today.