Whether you’re about to transition to a leadership position or need help reigniting your drive for success, executive coaching can help. Executive coaching can sharpen your business skills, help you set measurable goals, and cultivate a positive company culture.
One study found that working with an executive coaching firm yields an average ROI of 788%. What’s the initial investment and where does this hefty ROI come from?
There is no one-size-fits-all answer to the question, “How much does executive coaching cost?” However, we can point to some factors that will impact the investment you may find yourself making.
Read on to learn about the costs and benefits of executive coaching.
How Much Does Executive Coaching Cost?
When you start looking for executive coaches, you’ll quickly discover how vast the cost spectrum is. While some coaches are charging flat rates of $10,000 for a six-month intensive program, others are charging over $1,000 for each hour of coaching you receive. Let’s take a look at the different factors that impact the cost of hiring an executive coach.
Coach Experience
Executive coaching isn’t a regulated industry. Some executive coaches have long lists of certifications while others simply state their own experience as evidence of their abilities.
It’s important to pay close attention to coach experience when finding the right match. A newer coach should charge less than a coach with years of experience. However, depending on your industry and the amount of help you need, that experience may be worth the additional cost.
Coach Clientele
Some executive coaching firms make names for themselves by working exclusively with high-end clients. This could include celebrities looking to start their own businesses or up-and-comers from the Fortune500 list. These clients have serious money to spend and priceless influential power.
If you’re running a small or mid-sized business, there’s no use in trying to hire one of an executive coach with a list of famous clients. These are the executive coaches who can get away with charging $100,000 for their services. Not only are they too expensive but they may not have the expertise you need to operate a smaller-scale endeavor.
Payment Model
As we mentioned earlier, some executive coaches charge a flat rate while others charge per hour or per session. While an hourly fee may seem like the most approachable, make sure you’re doing the math. Some coaches will factor in discounts for flat fees because they guarantee payment upfront.
You may also find that executive coaching firms offer different payment models based on things like individual versus group coaching. For example, they may offer sessions shared with other company leaders at a reduced cost.
Number of Sessions
To reap the full benefits of an executive coach, you’re going to want to book multiple sessions. Some executive coaches will only sign clients on for long-term coaching (typically one-month, three-month, or six-month contracts). Others will let you customize your number of sessions based on your needs and goals.
Keep in mind that while more coaching means a higher price tag, it’s also going to yield a better ROI. While a handful of sessions may seem like a better fit for your budget, you may only scratch the surface in that time.
Intensity of Sessions
What will an executive coaching firm help you achieve? Some may take an individualized approach, helping company leaders develop their own confidence and skills. The idea is that with a stronger and more confident leader, the entire business will benefit.
Others will go a step beyond this almost therapeutic method and get into the nitty-gritty of your actual business. These executive coaches can help you identify blind spots in your current operations. They can help you set short-term and long-term goals.
Believe it or not, an executive coach that dives deep into your company’s needs won’t inherently cost the most. However, the lowest-cost executive coaches may not get you where you need to go.
The ROI of Executive Coaching
You can expect to pay anywhere from $10,000 to $100,000 to hire an executive coach. What is it that makes executive coaching so beneficial to business leaders? Take a look at the areas where you may see a return on investment.
Enhanced Productivity
After working with an executive coach, you can return to your business with new eyes and a fresh perspective. Rather than struggling toward large goals with no way to measure success, you’ll know what smaller milestones to strive for. This goal setting and growth mindset will enhance your productivity as a leader.
Better Team Performance
During your executive coaching sessions, you’ll also learn how to better manage your team of employees. From managing projects to delegating individual tasks, you’ll have the skills you need to boost your team’s performance. When both you and your employees are working at your optimal levels, you’re positioned to start growing your profits.
Increased Workplace Satisfaction
One of the biggest problems that an out-of-sync business leader will encounter is low morale around the workplace. When you come back from coaching with a positive attitude and new knowledge, you can start to improve your company culture. Workplace satisfaction reduces employee turnover and boosts performance.
Who Pays for Executive Coaching?
When we’re talking about executive coaching ROI, we’re talking about financial benefits for your business. Who is supposed to pay for your executive coaching?
Depending on the size and structure of your company, executive coaching is typically a business expense. In other words, it comes out of your profits. You may even be able to write off executive coaching, though there are strict limits around tax deduction eligibility.
Find the Right Executive Coach for Your Budget
When you get the boost in skills you need, your company can see a serious return on investment. We hope this guide has shed light on the executive coaching cost and why you’ll find firms charging such wildly different amounts.
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