Value Add from Coaching

Where is the 'Value Add' from coaching?

We know that coaching can make a real difference and that it adds value for both the individual who is coached and for his or her organisation.

A problem for those who purchase coaching is that its benefits are often thought to be intangible, incapable??of measurement.

But the reality can be very different.

If I look at the sort of things that are being measured in client organisations many of them have a monetary value.

Consider for example the costs of?

• Labour turnover
• Absence
• A reportable accident, a Lost Time Injury or even an accident that leads to a 5 minute trip to the first aid box

And the gains that can be made from

• increasing productivity - by 1%
• increasing profitability - by 1%
• cutting the cost of quality - by 1%
• improving employee engagement - by 1%

Coaching can support setting targets and achieving results in each of these important metrics.

Looking at the numbers

Labour Turnover

In their report, for Unum, Oxford Economics conclude that the average cost of turnover per employee is ￡30,614.

They state that this cost comes from 2 components: firstly lost output while a new worker gets up to speed and secondly the?more direct costs of finding and absorbing a new worker.?

If you’re interested in understanding more about what labour turnover is and how to measure it the Make UK report on labour Turnover in the Manufacturing Sector is a great start.??You can access it here:

https://www.makeuk.org/insights/reports/labour-turnover-report-2021

Absence

Xpert HR (in 2019) calculated the??cost of sickness absence in 2019 stood at an average of ￡544 per employee and?if you’d like some insights in to absence levels in manufacturing this report is worth studying:

https://www.makeuk.org/insights/reports/absence-benchmark-2021-download

Accidents

In 2019 the Health & Safety Executive??calculated the cost to employers of an absence of 7 days or more at ￡5800:?

https://www.hse.gov.uk/economics/eauappraisal.htm

Productivity/Profitability/Cost of Quality/Employee Engagement

These are all things that can be measured & improved.???What does a 1% increase look like for your business?

COACHING

So if you are an ‘average or typical business’ by coaching and you reduce your Labour Turnover by 1 and you reduce your absence levels by 1% and have one less serious accident this could represent a saving of more than ￡35K!??

Now I know none of us are typical but even a % of that is worth having?

If you’d like to chat about coaching and how it can improve outcomes in a manufacturing business please just message me (on Linkedin) and we can chat over a virtual coffee.