The State of Coaching and Mentoring 2023

Prepare today’s workforce for future challenges

Coaching and mentoring continue to be essential components of most workforce development strategies. Done well, they have a demonstrable impact at both the individual and organizational levels. And our own past two annual research studies on these topics (The State of Coaching and Mentoring 2021 and 2022) showed considerable differences in both individual and organizational performance between those organizations that had highly effective coaching and mentorship programs versus those that did not.

Looking into the near future, the importance of coaching and mentoring will likely only increase in importance, in part due to a changing looming priority: the need for massive upskilling and reskilling. In this report, we take a deeper look at the factors and practices that fuel or hinder effective coaching.

Key Findings

● The importance and usage of coaching and mentoring are on the rise.

● There are several factors driving coaching/ mentoring programs.

● Despite the importance of coaching and mentoring, less than a third say coaching and/or mentoring in their organization is very effective.

● Coaching and mentoring face barriers to improving their effectiveness.

● More organizations are turning to technology to enhance their coaching/mentoring programs.

● Companies with more effective coaches/ mentors do things differently.

How Critical Are Coaching and Mentoring?

About a third say coaching and/or mentoring programs have been in their organizations for five years or more. However, given the number of years coaching/mentoring has been in place, it is still relatively new or nonexistent for many organizations; about a third say, they have had either coaching or mentoring programs in place for four years or less.

Seventy percent of respondents agree or strongly agree that coaching is an important practice in their organization, and two-thirds feel the same way about mentoring.

Coaching and/or mentoring are currently important practices in your organization. Percent responding agree or strongly agree

What’s Driving the Rise of Coaching and Mentoring?

We asked respondents to select the top five reasons for the increased usage of coaching/ mentoring over the past year. Helping people prepare for new roles and assignments tops the list at 52%, followed closely by helping others realize their potential at 50%. Further, 46% say improving employee engagement, and 41% indicate creating a positive culture drives the usage of coaching and/or mentoring.

The need for preparing the workforce for future roles is reinforced by similar reasons for increased usage of coaching/mentoring: preparing a pool of talent for future critical roles (35%), and upskilling employees (30%).

Are Organizations Building Cultures That Support Coaching and Mentoring?

While 69% agree or strongly agree that managers help others grow professionally, fewer say that senior leaders are positive role models for coaching/mentoring (55%), and that everyone is supported in reaching their full potential (47%).

Further, about three-fifths agree that employees are encouraged to seek out coaching and mentoring and that their organization values both internal and external coaching and mentoring.

Who Does Coaching and Mentoring?

In more than 9 in 10 firms, external coaches are utilized for some coaching. These external resources can bring experience, credibility and an outside perspective. In almost the same proportion of firms (87%), human resources engages in coaching activities. About three-quarters (76%) say that direct supervisors do coaching in their organization. Mentoring is frequently done by internal resources. Only 37% rely on external sources for mentoring. In more than 8 in 10 organizations, mentoring is done by non-direct managers (84%), executives/senior managers (83%), and colleagues/peers (80%).

How Do Organizations Choose External Coaches and Mentors?

Organizations use a variety of criteria to select external coaches or coaching services, however, no one criterion was selected by a majority. The most common criterion is the coach’s experience (35%).

What are the main criteria your organization uses to hire or contract external coaches or coaching services? (select all that apply)

Referrals from trusted colleagues, consultants or clients

Compatibility and trust

Credentials held (e.g., ICF)

Rates and fees

Track record

Ability to provide group coaching services

Return on investment (ROI) metrics

Quality of their regular repor ts

Educational degrees

We do not utilize external coaches

The Impact of Coaching and Mentoring

We explored the perception of coaching and mentoring based on two broad outcome variables: individual development and organizational performance. We found that 63% agree or strongly agree that mentoring leads to increased individual performance, and 66% say the same about coaching. Similarly, 58% agree or strongly agree that mentoring leads to improved organizational performance, and 57% say the same about coaching.

To learn more about the state of coaching and mentoring in today’s organizations and for key takeaways and recommendations on the topic, check out the full report.

Read the Research Report