A year ago, massive change came without warning as Covid-19 spread around the world. Company leaders were forced to pivot overnight in response to economic, financial and public health crises. The result has been an unprecedented increase in workplace stress, anxiety, burnout, and pressure.

Leaders must be resilient in the face of adversity. They must make intelligent decisions, navigate conflict and collaborate effectively, even in an environment where constraints exist.

So it stands to reason that improving executive leadership capabilities benefit organizations, their employees and the communities where they operate.

Is it possible to build executive capabilities in a largely virtual world? Absolutely. Executive coaching is a smart and necessary way for an organization to support resilience, leadership, l and professional development.

A coach’s role is to guide and support executive development. Even when the coach is paid for by the employer, their client is the executive, making this a very unique three-party relationship.

A great coach has proven experience as an executive AND a strong history of effectively managing the three-party relationship that involves them, the employer and the executive.

3 Trends that Support Hiring an Executive Coach

Why is it important to consider hiring an executive coach now? Experts have identified three key trends for 2021 that make executive coaching more relevant today than ever. They are:

1. An exodus of C-level executives: The pandemic has forced leaders to re-think their careers and goals. In addition, talent mobility is picking up steam after lagging for most of 2020. And younger employees want leadership training to move up the ranks — more than half (53%) say they want to take on leadership roles, but only 6% of organizations have strong leadership development programs in place, according to a Global Human Capital Trends report.
2. Startup leaders are becoming scale-up leaders: Tech startups are receiving investments, and that requires CEOs and founders to evolve so they can manage their company’s growth and scale at speed.
3. Diversity, equity and inclusion is entwined with leadership: It is no longer enough for leaders to value diversity; they must “walk the talk” as they work to bring systemic changes to life throughout every facet of their organization. Leaders will be asked to do more to promote and elevate DEI, and they should be ready to embrace these challenges head on.

Executive Coaching Has Immense Benefits for Employers

Organizations that take a strategic approach to leadership development reap the benefits. Here are some specific ways your organization may benefit from investing in high-potential leaders:

• Improved employee engagement and retention: Most employees don’t leave companies; they leave bosses. Employee turnover is expensive — it can cost as much as 33% of a workers’ annual salary to replace them. Good leaders create good employee engagement; conversely, bad leaders have poor engagement. Engagement is critical to retention.
• Greater loyalty and strategic alignment with organizational goals: Supporting leaders’ development shows them you’re making an investment in them — that motivates them and aligns them to your organization’s objectives and values.
• Increased diversity, equity and inclusion: Leadership development reduces personal biases around hiring, mentoring, and succession planning.
• Support and mentorship opportunities: An executive coach can work with recently hired or promoted executives to develop their skills and empower them to make an impact, or help those with key performance issues move past those issues to become better leaders and achieve business results faster.
• Focus and a fresh perspective: Senior leaders have an opportunity to view their work differently, adapt how they interact with others, and gain clarity and focus on issues and decisions that impact their daily responsibilities. This helps them cultivate personal accountability, and develop a culture of accountability throughout their teams and the organization.

In addition, executive coaching can help executives:

• Increase their emotional intelligence and presence
• Develop self-awareness and behavior change
• Identify key skills and areas for improvement
• Resolve personality conflicts
• Pinpoint personal and professional goals, and create roadmaps to achieve them
• Facilitate education and personal growth
• Determine the best ways for them to contribute to their organization’s success
• Build self-esteem and confidence
• Provide a toolbox of new skills and strategies

Weighing the Costs Against ROI

Although executive coaching may seem like a costly investment — the average six-month engagement typically ranges between $20,000-$40,000 — it’s worth considering. According to the International Coaching Federation, leaders who participated in executive coaching increased their work performance, time management and team effectiveness by 50-70%.

One way to potentially help mitigate the cost is to swap out executive incentive compensation for an investment in an executive coach. This often leads to stronger ROI for the company, and larger long-term financial incentives for the executive.

Choosing an executive coach requires careful thought and consideration. The coach must be a good fit for the organization. More importantly, they must be compatible with the individual receiving the coaching for the engagement to be successful. The best outcomes result when a coach’s expertise and temperament align with the coachee’s personality, needs and goals.

The Bottom Line

Simply put, organizations that embrace a culture of coaching and invest in their senior leaders outperform those that do not. If you’re questioning whether or not you can afford to hire an executive coach for your leaders, the reality is, you can’t afford not to. Executive coaching is a great strategy to help leaders and companies evolve, especially in times of unpredictability like these.