My3Goals Blog

- Scott Shute

A few years ago we got a quote from three different carpenters to build a built-in entertainment center in our living room. It wasn’t supposed to be anything fancy, just a place to put the TV, stereo, and all the junk that goes with it.

The first guy came and offered to do the job for $10,000. I nearly had a heart attack. Guy #2 bid on the job for $2,500. Now I was really confused. As much as I thought the first guy was trying to rip us off, I thought maybe the 2nd guy wasn’t qualified because he was so much cheaper. Guy #3 offered to do it for $5,400. In the end we went with our gut instincts and found the solution that fit our needs.

People have the same confusion about the costs of coaching. Coaches themselves are even confused. Part of the challenge is that there are so many types of coaches out there. From general life coaching to very specific niche marketing, the topics run the gamut. Coaches also come from a variety of backgrounds. Many come from the world of psychology, but there are wonderful coaches with backgrounds as teachers, cops, business people, human resources executives, physical therapists, chiropractors, etc…

I’ve seen pricing as low as $50/hr for life coaches just starting out to executive coaches that work on retainer for $40k/year. So, when you’re looking for a coach, what should you pay?

Before answering that, consider this. Let’s say you want help from a coach to create a better marriage between you and your spouse. What’s it worth to you to not get divorced? Or what would it be worth to you to get out of your own way and have better self esteem? Or to lose 10 pounds? Ultimately, no matter the goal, what’s a better life worth?

Then consider the likelihood that the coach you’re considering using can help you get there. Nearly every coach offers an introductory session to see if the two of you are a good fit. Use that time to get a feel for their skill level. Follow your gut.

Ok, but really, what should it cost? Here are some very rough guidelines

* Life Coaching – $125 – $175/hr is typical. More for a very experienced coach with a great reputation and background. Less for someone starting out or with less relevant experience.
* Business Coaching – $250-350/hr when working at the Director/VP level. More when working with C-Level staff, less if working at the manager level.

In all cases, consider your ROI (Return On Investment). Set clear goals. Show up and be willing to make the tough changes.

What’s it worth to you to reach your goals?

- Scott Shute

Coaching in the workplace has grown tremendously in the past 15 years and continues to evolve and grow. Here are seven key reasons why companies use coaching to deliver better results.

1.  To improve individual performance or productivity

The company wants to get the most out of the employee, especially for the pricey C-level positions.

2.  To address leadership development / succession planning

Succession planning is a big deal. It costs companies a breathtaking amount to recruit and hire C-Level staff (especially CEO’s) from the outside. Coaching is a great way to help ensure that internal succession planning is successful and the next C-Level staff is grown, not hired.

3.  To improve organizational performance

Coaching can help the leader of the organization deal with the changes and challenges that they face while trying to get the most out of the entire group.

4.  To address specific workplace problems

Sometimes the coach is brought in to deal with a problem. This allows the group’s leader to put the attention that is needed on the problem without becoming personally consumed and letting the rest of the group fall apart. Coaching can help bring that nasty problem to closure more quickly.

5.  To boost employee engagement

Stock options under water? Layoffs all around? Growth prospects slim? If an employee is thinking “Well, at least they’re taking care of me and looking after my professional development”, then they’re more likely to stay and give their best.

6.  To improve employee retention rates

See #5

7.  To improve performance of employees whose supervisor is being coached

The rising tide floats all boats. When the leader is doing well, it sets the tone for the rest of the group and the whole team will perform at a higher level.

Coaching will continue to grow as long as clear ROI is established and maintained