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The company (Metropolitan Life) put part of its retail sales force through an intensive coaching program, and afterward found that productivity among those salespeople increased by an average of 35%, while 78% of the sales reps embarked on the pursuit of a new license or professional designation, and 50% identified new markets to develop. Perhaps most important, Metropolitan has retained all of the salespeople who had the coaching, a big deal, since industry statistics show that each rep who leaves a company with three years experience costs $140,000 to replace. Annie Weighs In On Executive Coaching3; Fortune. May 13, 2000 A traditional mentor, a veteran executive whose history in an organization runs deep, is practically an endangered species in the new economy. If your company still has one or two, they´re often too overwhelmed with assignments or too stuck in the status quo to be of much help. An executive coach, however, can provide the fresh viewpoint of an experienced outsider. Fast Company issue 5 page 1 http://www.fastcompany.com/online/05/coach.html Executive Coaching Pays Big Dividends:- With the use of an executive coach, the New England branch of Met Life experienced a sales boost of 60% by the end of the year.- An AT&T sales force had a revenue growth of 16% by the end of the year.- Dan Carlson began working with an outside coach last year to solve his part of Kodak´s horrendous challenge: cranking up productivity with a work force that had all but melted down. Carlson began to work with coach Jan Austin last March on the advice of an outside consulting firm. She met with frontline supervisors and their group leaders. She also conducted, among other things, a dozen two-day clinics to teach managers how to motivate rather than command, how to communicate with workers and elicit their opinions. As employees became more invested in their work, waste levels dropped significantly, so did overtime. Productivity increased. He wanted workers to “find their voice,” to start speaking up when they saw how to make things better. They started taking more initiative both inside and outside work.So You´re a Player. Do You Need A Coach? Fortune, February 2000. Training increased productivity by 22.4%. The coaching which included goal setting, collaborative problem solving, practice, feedback, supervisory involvement, evaluation of end results, and a public presentation increased productivity by 88%, a significantly greater gain compared to training alone.
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Smart managers have already removed the defects from their businesses. Now they´re using big-league business coaches to do the same for their business skills.The Zero-defect CEO, Inc. Magazine June 1, 1997. http://www.inc.com/articles/details/0,3532,ART1251_CNT53,00.html Turnover and Retention
“This year, Cisco´s turnover rate was 8.75%, compared to an average rate in Silicon Valley of 12-15%. I believe that coaching has had a lot to do with these results.
Cisco employee and corporate coach Dottie DeSelle, Today’s Coach, December 1999Turnover may actually be higher: 18.2% for technical professionals; 16.8% for technical managers.Inc. Magazine 1/1/1998 Cisco is one of America’s 100 best companies to work for.Fortune, 100 Best Companies to Work For, 6/2000. At LSI Logic, coaching was used to address retention issues for a team of SAP programmers. “They become completely super skilled, and then they´re worth their weight in gold, “says executive coach Sharon Jordan-Evans. “LSI didn´t want to have eight or ten people stolen away before the project was even completed.” So they hired her to solve the problem, and she created a program that gave each employee their own personal career coach who met with them weekly. Success is in the results. Two years later, only one of those 28 people has left the company, says Jordan.-High Touch For High Tech. Business2.com
“Most business leaders cannot tell you why their people should be loyal. They get it confused with obedience, or just staying there, or fear. Companies often try to combat turnover with big salaries and option grants. (This) approach is self-defeating because it works only as long as times are good and an organization can afford to pay a fairly small roster of stars above-market salaries. Giving employees a chance to grow at their jobs builds loyalty in a way that money cannot.” -quote from Fred Reichfield, fellow at Bain Consulting, Denver Rocky Mountain News, May 28, 2000. -21% of respondents indicate employee retention is a problem in their company.-Respondents whose companies employ 250 or more people are the most likely to indicate employee retention is a problem in their company.-Among respondents who identify employee retention as a problem in their company, one-half feel this problem has increased over the last two years.-Respondents indicate employees who have worked with the company for six or fewer months are the ones most likely to leave the company; those with one to two years´ experiences are the next most like to leave their positions.-To retain new hires, almost 30% of the respondents say they offer additional employee benefits at the start of employment. [Conclusion: to stay competitive, companies had better start thinking in terms of unique employee benefits, like coaching.]Thomas Staffing: 14th annual Survey Results 1999
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40% of new management hires fail within the first 18 months.70% of companies are turning to third party companies to find their managers.Reasons why new managers fail:Failure to create good relationships with their peers and subordinates, 82%.Confusion or uncertainty about what the higher-ups expect 58%.Lack of internal and political skills, 50%.Inability to achieve the two or three important objectives of the new job, 47%.Don´t Blow Your New Job, Fortune,1998
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Leadership: To a great extent, an employee´s experience at a company is shaped by his or her boss; employees rely on supervisors for everything from communication to promotions and rewards. Not surprisingly, a number of studies show that ineffective supervisors? That is, “bad bosses” are the largest single factor driving employee turnover. The Employee Retention Challenge Development Dimensions International
What Employees Feel Is Important vs. What Supervisors Feel Is Important
| Item |
Employees |
Supervisors |
| Appreciation |
1 |
8 |
| To be included |
2 |
9 |
| Help w/ personal problems |
3 |
10 |
| Job security |
4 |
3 |
| Wages |
5 |
1 |
| Interesting work |
6 |
4 |
| Promotions |
7 |
2 |
| Personal growth |
8 |
6 |
| Working conditions |
9 |
5 |
| Tactful discipline |
10 |
7 |
Myths About Motivation
Most supervisors believe money is the top motivator. Money is not the top motivator. Many studies show that good income is usually ranked in the middle of the list of ten top motivators. Compensation is usually viewed for its exchange value. Employees “expect” a paycheck in return for completing their work. Employees want to feel as though their contribution is important. In those same studies referred to above, managers rate good wages, promotions and job security far higher than do employees. Employees indicate their top motivators are appreciation for a job well-done and feeling “in on” things.There is a direct correlation between the expense of incentives and level of satisfaction with those incentives. The most important incentives for employees are non-cash rewards. Employees who feel valued for their work and who receive public praise for their good efforts are the most satisfied employees.Offering motivational rewards to employees, such as development opportunities, will result in higher turnover. In fact, the opposite is true. The more you develop an employee’s marketability, the more they want to stay with their current employer. Development is particularly important for Generation X, who values an employer that allows them to acquire new skills and add challenges to what they do.
The High Cost Of Turnover
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The assertion is that it costs at least 150% of base salary. You can see this article on my website Bill Bliss, www.blissassociates.com
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| Salary |
Benefits |
Total |
150% |
| 50,000 |
15,000 |
65,000 |
97,500 |
| 75,000 |
22,500 |
97,500 |
146,250 |
| 100,000 |
30,000 |
130,000 |
195,000 |
Coaching = Business Development and Profits
Corporate
Build cooperative culture of self-managing teamsEstablish 5-20 year vision, mission, and strategiesTrain non-sales staff to sell, too (and enjoy it).Strategic repositioning in markets/industryDouble firm´s sales volume and profitability
Professional
Develop a full, successful practiceDevelop a strong reputation, be known as a modelManage clients betterIncrease sales and profitabilityRecognize and eliminate high, hidden delivery costs LeadershipDevelop a plan to leave a legacyEmpower others to succeedBecome the standard for excellenceExperience and benefit balance in all areas of your life
BENEFITS OF COACHINGYou’ll reach for much, much more because of the support and structure.
You’ll start making and keeping more money.
You’ll make better decisions when you explore ideas with an objective listener.
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