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29 benefits of coaching for individuals and businesses

February 23, 2024 - 16 min read
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    There are lots of products and services out there that claim to change your life — coaching might be the one thing that actually delivers on this promise. The benefits of coaching reach beyond the superficial and are as flexible as you need them to be.
    A friend of mine was ready to quit her job. Two months after coming back from maternity leave, she was stressed and unhappy. She had lost confidence in herself.


    Luckily — for her and her team — she got a coach instead. Her coach helped her learn to cut herself some slack and focus on what was most important. Within a couple of months, she was back to her competent, collaborative self. Instead of becoming a bad retention statistic, she was setting career development goals for her future.


    At BetterUp®, I get to hear stories about how coaches have helped people transform in big ways and small ones all the time.


    Let’s look at the many benefits of coaching, from its powerful, positive impact on self-confidence and wellness to overall work performance. 

    The benefits of coaching for individuals

    Coaching is a highly personalized and individualized well-being intervention. In the last million coaching sessions with BetterUp members, we’ve learned quite a lot about how to reliably deliver positive coaching outcomes for all kinds of people. 

    Whether you are pursuing business coaching for your company or career coaching for yourself, the relationship with a coach is unlike any other personal or professional relationship. A coach, through their training and expertise, sees the coachee holistically and encourages the coachee to bring their whole self to the coaching sessions. 

    A BetterUp® coach helps the individual build self-awareness around the various roles they play and dimensions in their lives through the Whole Person™ model. It’s a powerful intervention because the coaching process adapts to individual circumstances, meeting people where they are, with what they need, when they need it. 

    While coaching sessions are facilitated by a trained professional, they put the control squarely in the hands of the member. Good, expert coaching is designed to empower the individual to find their own answers within themselves. In the coaching partnership, it’s the coachee, not the coach, who sets the goals, defines the playbook, and determines what success looks like.

    The coach provides committed expertise, bringing insight, perspective, and a growth mindset to the coaching relationship.

    Up until recently, coaching was anecdotally sound but had yet to be empirically validated. BetterUp is changing that. The science behind coaching for mental well-being improvement is building to answer foundational questions about impact and ROI

    Data is also helping coaches home in on the interventions and exercises that are most effective for different people facing specific challenges. 

    With this information, growth is predictable — it follows patterns in terms of which areas grow first and fastest and which require more time. Understanding the uniquely human pattern of coaching, growth, and development helps people and organizations know how long to commit, what progress looks like, and when to expect results.

    12 personal coaching benefits

    Expert executive coaching can have profound impact on individuals in their personal and professional lives. The benefits can be immediate but continue to pay dividends over the years, from role to role, over the course of a career and a lifetime. Not many corporate benefits or training programs can make that claim. 

    One crucial way coaching helps individuals is by helping them to see themselves more clearly. A coach provides space and structure for the reflection that is necessary for learning and growth. They help you understand what your values are and where your actions diverge from your values or stated goals. 

    A good coach can help you reconnect with what you love about your life and your work.

    Contrary to the classical understanding that pressure is necessary for peak performance, we now know that high pressure actually makes individuals less efficient. Mental fitness, on the other hand, is associated with an increase in productivity, collaboration, innovation, and job satisfaction. 

    BetterUp’s research has found that people tend to build the skills of mental fitness in a certain order. Building these core competencies and skills sets the foundation for deeper, more nuanced competencies. Here’s a look at some key areas of growth for individual coaching:

    1. Self-awareness

    In a recent study, BetterUp’s research indicated that the first significant area of development for most participants is introspection. This is a foundational skill for both personal and professional development. Once this is in place, members can work to build deeper insight into what they want and future areas of growth.

    2. Resilience

    With feedback and improved self-awareness, people develop improved stress tolerance.  When leaders become more resilient, they’re better able to adapt to changing or unfavorable circumstances successfully. In turn, this decreases the likelihood of burnout and improves overall life (and job) satisfaction.

    3. Collaboration

    There’s something special about working on a team where everyone is committed to personal development. People are better able to understand the motivations and underlying commitments of everyone in the group. They benefit from reduced conflict and improved confidence in decision-making. Individuals are better at time management and contribute more effectively to the team.

    benefits-of-coaching-a-person-helping

    4. Self-efficacy

    The main components of self-efficacy are learning through another’s experiences and being affirmed by people you trust. These factors are key building blocks in the coaching relationship. Creating strategies to achieve goals and celebrating those successes with a coach is a prime way to build confidence in oneself.

    5. Communication

    All types of coaching have a beneficial effect on communication skills. Developing effective communication skills can help individuals in all aspects of their lives — both in and out of the workplace. This has its own positive impact on stress — which is certainly exacerbated by poor communication.

    6. Work-life balance

    With coaching, people take time to set their own priorities and work to make them a greater part of their lives. That empowers them to maintain a better work-life balance. These individuals tend to gain more job and life satisfaction. This can be attributed to both improved self-care and greater alignment with their goals.

    7. Increased mental health

    Within the first three months with a coach, BetterUp Members see a 38% decrease in languishing. Among other dimensions of mental health, life satisfaction, purpose, and social connection improve. These, along with emotional regulation, reliably improve mental health for coaching participants.

    8. Build personal awareness

    Acting as a catalyst for self-discovery, coaching enables individuals to delve into their core values, strengths, and areas ripe for development. This journey of introspection ensures that their actions are in harmony with their values, enhancing decision-making processes and overall life satisfaction.

    9. Encourage personal growth

    Through targeted conversations and actionable feedback, coaching nudges individuals toward continuous personal and professional growth. Coaches often prompt meaningful dialogues and provide feedback that is both actionable and personalized. This guidance and self-reflection help individuals set and achieve their goals, enriching their well-being and fulfillment.

    10. Fosters teamwork

    By highlighting the importance of mutual support and understanding, coaching strengthens the fabric of teamwork. It cultivates an appreciation for varied viewpoints, creating a supportive atmosphere where every team member feels valued, paving the way for more effective collaboration and problem-solving.

    11. Improved employee relations

    Coaching paves the way for healthier relationships at work by teaching empathy, active listening, and constructive feedback. By instilling key interpersonal skills, coaching paves the way for stronger workplace relationships. Employees learn to engage in healthier, more constructive relationships, fostering a work environment where support and positive collaboration are the norms.

    12. Accountability

    A cornerstone of coaching, accountability empowers individuals to own their actions and outcomes. Coaching highlights the importance of personal responsibility and motivates individuals to acknowledge their role in both actions and outcomes. This focus on accountability inspires a commitment to fulfill obligations and pursue excellence, nurturing a culture of dependability and integrity across the organization.

    8 organizational benefits of coaching

    Something is to be said for caring for the goose that lays the golden egg. That's why some companies narrow executive coaching to just a limited set of high potentials. However, employees all across the organization can benefit from supportive coaching whether they are taking on a new role, developing direct reports, or informally influencing their teams. 

    When your employees are happy, feel supported and competent, and have a sense of belonging, there are human benefits and bottom-line benefits as well. Productivity and performance go up. 

    When a manager receives professional coaching, their team members also benefit from the mentoring, leadership development, and coaching culture the manager brings back into the organization.

    1. Empowers individuals

    Coaching validates, supports, and empowers the individuals within an organization. It gives them a neutral party to tackle concerns about professional development with, as well as a safe space to practice having difficult conversations.

    2. Increases employee engagement

    When employees feel like they have to hide part of their life or identity in the workplace, it has a strong negative impact on both belonging and engagement. However, when people are encouraged to bring their whole selves to work, they’re more likely to be engaged, productive, and satisfied with their jobs. 

    benefits-of-coaching-three-people-talking

    3. Improves individual performance

    Even the most dedicated managers don’t have unlimited time to spend coaching their employees. Most end up taking time out only to address aspects of exceptionally good — or exceptionally poor — performance. Coaching provides an additional, growth-focused touchpoint for employees throughout the week. This, in turn, improves both individual and team performance.

    4. Deeper level of learning

    There’s a reason your corporate training is putting your employees to sleep. People learn better — and retain more information — when they’re personally invested in the learning process. Working with a coach appeals to a wide range of learning styles. Furthermore, connecting the new skills to current goals and real-life applications makes it easier to apply the new learnings.

    5. High employee commitment

    When companies show genuine commitment to their employees’ well-being, employees tend to respond in kind. Working with a coach improves retention, job satisfaction, engagement, and motivation.

    6. Attracts more talent to the company

    A robust coaching culture showcases an organization's investment in its people, making it a magnet for top talent. 

    7. Improves workplace culture

    Coaching elevates workplace culture by enhancing communication, fostering growth, and building trust. It promotes collaboration, empowers employees, and fosters resilience, transforming the environment into a collaborative, positive space. This approach boosts morale, encourages professional development, and drives the organization toward greater success and adaptability.

    8. Increased revenue

    Through the cumulative effect of improved productivity, employee engagement, and retention, coaching indirectly contributes to the organization's bottom line.

    9 benefits of coaching for both individuals and organizations

    You'll notice there is some overlap in the ways coaching benefits individuals and organizations. Companies are made up of individuals, after all. So it may come as little surprise that personal coaching goals often ladder up into career goals. Here's a more granular look at these overlapping benefits:

    1. Increased employee engagement

    Engaged employees are the lifeblood of any thriving organization. Coaching invigorates this engagement by aligning individual passions with organizational goals.

    2. Productivity

    Coaching boosts productivity by refining focus, enhancing efficiency, and reducing time spent on non-essential tasks.

    3. Builds confidence

    Confidence is contagious. As individuals become more confident in their roles, this self-assurance permeates their teams and projects.

    4. Improved leadership

    Effective leadership is cultivated through coaching, which benefits organizations by creating leaders who are adept at navigating change.

    5. Improves skills

    Both soft and hard skills are honed through coaching, enhancing individual competencies that contribute to the organization's success.

    6. Better communication

    The art of clear and impactful communication is often refined through coaching, leading to better understanding and collaboration within teams.

    7. Create better goals

    Coaching assists in the formulation of SMART goals, aiding individuals in their personal aspirations and organizations in strategic planning. Once armed with these goals, employees can more confidently work with leadership to build out plans to make the most of their time with the organization.

    8. Empowerment

    Coaching empowers individuals by giving them the tools, confidence, and autonomy to take charge of their careers. And empowered team members feel more comfortable speaking up and sharing their valuable ideas.

    9. Job satisfaction

    Job satisfaction soars when individuals feel supported, challenged, and valued. One benefit of coaching is that the difficult conversations or career development an individual walks through with their coach will feed into improved job satisfaction.

    Leaning into the benefits of coaching 

    It would be nice if there was an overnight fix to personal and professional growth. Coaching isn’t a secret fix. It’s a scientific one.

    Working with a coach is an incredible and powerful tool that helps create a more productive and engaging work environment. Life coaching can help you in your personal development goals. The benefits of coaching are profound both personally and professionally, for both individuals and teams. And as a leader, developing your coaching skills pays dividends for your organization. 

    Published February 23, 2024

    Allaya Cooks-Campbell

    With over 15 years of content experience, Allaya Cooks Campbell has written for outlets such as ScaryMommy, HRzone, and HuffPost. She holds a B.A. in Psychology and is a certified yoga instructor as well as a certified Integrative Wellness & Life Coach. Allaya is passionate about whole-person wellness, yoga, and mental health.

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