Recent signs are showing that companies that develop a culture where coaching is encouraged and practiced well by everyone have better bottom lines. This may be something for human resources departments to think about and to get involved in creating such an atmosphere.

A recent study by the California-based advisory firm Bersin and Associates showed that companies where managers made efforts to frequently coach others had business results that were 21 percent better than those companies that did not. And companies that developed a corporate culture where coaching was encouraged had a bottom line 13 percent better than those that did not, as well as significantly better engagement, productivity and customer service among employees.

The study, surveying almost 200 companies, also revealed that nearly three-fourths those surveyed now do coaching in place of conventional performance reviews. However, the authors also noted that coaching effectively is not a skill that many managers have.

According to the study’s authors, coaching is a major challenge for businesses trying to improve performance, yet they don’t know how to get the support needed for it. To ensure that coaching becomes an integral part of a company’s culture, senior executives need to get involved in coaching. But this is a problem in itself as only about 10 percent of executives believe in the value of coaching to improve performance.

To reverse the problem, business leaders need to get involved and personally bang the drum for coaching, especially by starting up coaching programs in their companies, according to the report. The report also says that human resource departments also need to get involved to help create an atmosphere that supports and measures the effectiveness of coaching.

Good performance management centers around coaching, experts say. Performance reviews focus on the past, while coaching looks toward the future and how to improve. To coach effectively, managers need to be good listeners, help to reinforce the behavior they want to see, and also ask open ended questions.

If you’re Manhattan-area company is on the search for improved results in 2010, partner with Winston Resources. We can help you source and place great employees, help you with your payroll, help you with drug testing, and more. Contact us today!