Coaching can be used for individual employees who may have exhibited, or been accused of, inappropriate, discriminatory, or harassing behaviors on how to respond effectively in a business environment. This is distinct from any disciplinary remedy that may be needed.
Toolkit: Build a Business-Driven Coaching Culture
Establish a coaching program that supports both executives and employees with proven strategies, actionable tips, and essential tools for HR leaders seeking measurable impact and growth.
A good coach brings out the best performance in people, whether the person is an athlete or a CEO. HR leaders recognize this: 54% of HR executives listed coaching and mentoring as the top skill they wanted their people managers to develop in SHRM's Effective People Managers report. Additionally, learning and development, which includes coaching, is the top priority for 46% of CHROs surveyed in SHRM’s 2026 CEO Priorities and Perspectives report.
Businesses initially introduced coaching mainly for executives, but today more organizations are embracing it for all employees. Virtual coaching and new coaching apps have made the method more cost-effective at scale, while the rise of AI coaches is upending traditional performance management systems.
While coaching can be ideal for easing leadership transitions, organizations implementing a larger program of coaching should approach it with the same level of clarity, purpose, and process as other strategic initiatives. This includes commitment from the organization and the individual being coached, a plan for obtaining results, access to qualified coaches, and follow-up evaluations to demonstrate the return on investment. This toolkit outlines what coaching is and what it isn’t, how companies can best use it, and useful tools, techniques, and resources for launching a coaching program.
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Coaching vs. Mentoring
In business, coaching is one method of guiding an employee from one level of competency to another. Organizations frequently use it to improve employee work habits; help people adapt to a changing environment or overcome specific obstacles; or to prepare employees for new assignments. Coaching is not:
- A step or technique in a progressive discipline system.
- Teaching or instruction. The person being coached focuses on finding answers from within.
Coaches usually conduct sessions one-on-one over a set period of time with a specific business objective in mind. For example, an executive who has recognized that they need to alter their leadership style, is facing a shift in responsibilities through a company merger, or needs to plan for their successor could all be candidates for coaching. It's a highly individualized process that accounts for the nature of the person being coached and the coach's knowledge, skills, and abilities. Coaching is a proven tool for leadership and management development that has been around for several decades.
Coaching is similar to, but distinct from, mentoring. Mentoring is a career development method that matches less experienced employees with more experienced colleagues in their chosen career path who offer guidance through formal or informal programs. Mentors and mentees may build a relationship that lasts throughout the mentee’s career, and mentors often assist with networking introductions and other activities to help the mentee expand their professional circle.
Pro Tip
You can adapt different types of coaching to different levels of leadership, for example, executive coaching for CEOs, transition coaching for first-time leaders, and accelerated coaching for high performers.
Elements of a Strong Coaching Culture
Strong coaching cultures meet certain criteria, according to the College of Executive Coaching:
- Employees and senior executives each value coaching.
- Dedicated on-staff or external coaches spend a significant amount of their weekly time on coaching activities and receive accredited training.
- If dedicated coach positions are not possible or are cost-prohibitive, managers and leaders who coach have a portion of their time set aside for coaching activities.
- Coaching is a fixture in the organization with a dedicated line item in the budget.
- All employees in the organization have an equal opportunity to receive coaching from a professional coach practitioner.
Managers who effectively coach their direct reports and peers help build a culture of trust that fosters employee growth and development. For those who make the commitment, coaching can open a new world in terms of greater candor, more respect from staff at all levels, professional alliances and relationships, and better skills to achieve strategic goals.
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Pro Tip
It is important to recognize that coaching is not for everyone. Some individuals may be resistant to feedback from a coach.In these cases, employers can pursue alternatives for the employee’s growth such as online learning targeted to their needs, and incorporate it as part of the employee’s professional development goal.
HR’s Role
HR’s multifaceted role in developing a coaching program includes determining the program design and budget, deciding who gets coached, negotiating contracts for external professional coaches, evaluating coaching certifications and references, and developing and administering follow-up evaluations to track and determine the return on the coaching investment.
Maintaining confidentiality is paramount, and clarity is key to ensure requirements are met. For example, the program should specify which items can (e.g., overall development plans) or cannot (e.g., personal data, company proprietary information) be shared with others outside the coaching relationship, and who those others are.
Consider the following additional factors when designing your program:
- Duration. While six to nine months is common for executive coaching programs, three to six months is more typical for employee performance improvement. Short-term skill-based training on a specific topic such as communication skills may be less than a month.
- Budget. The cost can vary widely, with an average hourly rate in the mid-$300’s for external executive coaches. If internal coaches are used, the staff time should be accounted for.
- Medium. Coaching sessions may be face-to-face, virtual, or a combination.
- Internal vs. external. Senior executives normally prefer coaches outside of the company, which allows them to feel more comfortable revealing their vulnerabilities. Internal coaching, often from immediate managers, is more common for employees.
Pitfalls to Avoid
Lack of buy-in. Executives and employees will need to see the value of coaching to be willing to invest their time in it and maximize its benefits. Those who are preparing for a promotion, moving into a new role, or who have hit a wall in their professional development are typically the best candidates. Employee coaching is often more targeted to specific performance outcomes.
Too much buy-in. Having to say no when the budget does not allow everyone who wants coaching to receive it can create resentment. HR must be prepared to explain the rationale behind selection criteria and offer alternative solutions such as virtual coaching.
Improper positioning. If the organization is using coaching to strengthen performance, it is important that the person being coached understands that their job is not in jeopardy. Do not use coaching as a last resort for serious performance issues.
Lack of employee commitment. There can be a tendency among employees to take virtual coaching less seriously.
SHRM Resources
- Strategic HR to Drive Performance and Business Growth
- AI Prompting Guide for Crafting Employee Communications
- How Skills Inventories Drive Smarter Workforce Strategies
- What Is the Difference Between a Strategic Plan and a Tactical Plan?
- Workforce Planning: Aligning Talent with Strategic Objectives
- Strategic AI Prompts to Transform HR Summarization Tasks
- HR Budget Planning Considerations That Drive Real Value
Pro Tip
Provide a hypothetical case study of an individual being considered for coaching to the potential coach and ask them to outline how they would proceed for deeper insights as to whether they are the right fit.
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Legal Considerations
Establishing a business coaching program requires careful attention to legal considerations to ensure compliance, protect privacy, and mitigate risks. Key areas include:
- Confidentiality and data protection: Coaching often involves sensitive employee information. Compliance with laws such as the General Data Protection Regulation (GDPR) (EU), California Consumer Privacy Act (CCPA) (US), and other state and local privacy statutes is essential. Ensure secure data storage, establish clear consent protocols, and robust confidentiality agreements.
- Employment law compliance: Coaching should align with federal laws including Equal Employment Opportunity (EEO) laws, Americans with Disabilities Act (ADA), and Title VII of the Civil Rights Act. Avoid discriminatory practices in coach and participant selection and content delivery.
- Contractual agreements: Draft clear contracts outlining the scope, responsibilities, fees, and termination clauses for both coaches and participants. When utilizing an external consultant, include non-disclosure agreements (NDAs) and intellectual property clauses to protect proprietary materials and coaching methodologies.
- Licensing and accreditation: Verify that coaches possess necessary certifications and comply with industry standards, such as those from the International Coaching Federation (ICF). Misrepresentation of qualifications can lead to legal liability.
- Workplace policies: Ensure the program aligns with organizational policies on harassment, grievance procedures, and ethical conduct. Integrate coaching outcomes with HR’s broader compliance framework.
- Recordkeeping: Maintain accurate documentation of coaching sessions and outcomes, adhering to legal retention requirements.
SHRM Resources
- 2026 Employment Law Update
- How Courts Interpret Title VII and Other Workplace Discrimination Laws
- How to Build Effective, Legally Compliant Inclusion & Diversity Programs
- Foundations of Legal Inclusion and Diversity
- Federal Labor Law Chart
- Why HR Confidentiality is Essential for Protecting Employee Info
- Multistate Laws Comparison Tool
- Avoid Job Discrimination: Know These Federal Laws
- Employment Contract Provisions
Executive Coaching
Executive coaching helps a capable executive perform at a higher level. C-suite clients are typically looking for a partner with whom to discuss decision options, expand perspectives, balance work and home activities, or strategize through difficult or unusual circumstances. Strategic coaching should integrate organizational and personal needs, and each engagement should be customized and focused on a leader's development goals.
Behavioral Change
Executive coaching can be helpful in addressing a senior leader’s disruptive or ineffective behavior. Executives may often be unaware that the competencies that got them to the top might not be the ones that will ensure their continued success. Executives are also not always receptive to unsolicited feedback or in admitting their weaknesses. If C-suite occupants perceive coaching as a practice that comes with the territory, they may be more open to it.
Organizational Change
Executive coaching is also useful for:
- Developing high-potential prospects for succession planning as executives near retirement.
- Global expansion that requires additional leadership skills and more deliberate and structured pipelines for future leaders.
- Cultural changes through mergers or acquisitions.
- Navigating cross-cultural environments with a workforce of different ethnic and national viewpoints, values, and expectations.
Executive Coaching Models
Many of the models commonly used in executive coaching have been around for decades and should be critically assessed for their limitations in terms of building a future-ready workforce that faces today’s challenges. The Forbes Council offers an overview of five classic approaches.
Pro Tip
Executives typically need six to eight months of one-on-one coaching for new behaviors to become ingrained. Practice, observation, and feedback are key to behavioral change.
Techniques and Tools
At its best, coaching is about partnering and helping people develop a higher level of expertise. The coach does not solve the individual's problems — individuals solve their own problems. Along with providing perspective based on their experience, coaches have several recognized tools and techniques to help ensure a successful partnership:
- Survey data. Data from anonymous 360-degree surveys or climate analysis surveys, often a wake-up call for executives and leaders, can identify objective behaviors that can be linked with business outcomes.
- Assessments. Personality and behavioral assessments can illustrate traits and behaviors that are dominant or lacking, which can help identify focus areas for coaching sessions.
- Active listening. Making sure the client is heard helps coaches build trust.
- Prioritizing. Helping the individual distinguish what is important from what is not.
- Growth. Leading individuals outside of their comfort zone.
- Empathy. Acknowledging the individual’s accomplishments and empathizing (not sympathizing) when they are discouraged.
- Goal setting. Helping individuals develop an action plan, anticipating and overcoming potential obstacles.
- Resources. Recommending books, courses, or other materials to enhance learning.
- Client journaling. Encouraging clients to write to help them gain awareness of emotions and behaviors and track progress toward goals.
- Role-playing. Participating in simulations for clients to practice skill-building.
- Assignments. Providing on-the-job homework between regular meetings.
SHRM Resources
- 360-Degree Feedback Request Form for Leadership Behaviors
- 360-Degree Manager Effectiveness Performance Evaluation
- SMART Goals Made Simple: A Dynamic Goal-Setting Worksheet
- Goal Setting Made Easier with AI
- Training Needs Analysis Form
- How to Identify Upskilling Opportunities Through Training Needs Assessments
Organizational Applications
Coaching can be an effective tool in meeting numerous organizational needs.
Management Development
Managers who lack necessary people skills in setting goals, providing accountability, delivering effective performance reviews, or who want to become better coaches themselves can benefit from coaching. Coaches may address big-picture issues or polishing in a particular area such as delegating work, time management, teambuilding, performance management, hiring, communication, or negotiation skills. Similarly, an employee may benefit from coaching on how to effectively transition into their new role as a supervisor.
HR Professionals Development
HR pros seek coaching to help them become more effective in:
- Demonstrating their value to the organization's bottom line.
- Making the case for the importance of HR programs.
- Strategic planning.
- Demonstrating return on investment.
- Institutionalizing HR initiatives.
- Handling corporate communications.
Transitions
Coaching is ideal for internal transitions such as:
- An employee's first international assignment or an expat repatriation.
- When employees are promoted, or when their role has changed significantly in scope or scale.
- Mergers or acquisitions.
- When an employee is assigned to a task force or key initiative.
- Accelerating a high-potential employee's development.
- Succession plan development and/or development of the organization's leadership pipeline.
· Helping employees prepare for retirement.
Skills Gaps
New coaching platforms have emerged that allow employees to quickly find, match, and work with coaches, making it easier for individuals to build their skills. These platforms may provide tools to assess what each employee needs from their coach, match them with a coach who has the right experience and expertise, and offer tailored digital coaching sessions.
Performance Reviews
Personalized AI coaches can transform static annual reviews into dynamic, ongoing feedback loops that align employee growth with organizational goals. These AI tools facilitate continuous engagement and upskilling while empowering managers with timely, actionable insights and communication strategies, making employee performance an everyday experience rather than a periodic event. However, while nearly 46% of organizations already use AI for employee goal setting according to the SHRM 2024 Talent Trends report, the integration of AI coaching must be balanced with human oversight. This is necessary for privacy, trust, and bias concerns and helps ensure that technology supports meaningful employee development.
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Inclusion and Diversity
Organizations must ensure that eligibility for coaching is based on merit, rather than any protected characteristics to keep coaching programs from engaging in unlawful discrimination. That said, coaching can support inclusion and diversity within your organization by focusing on these areas.
Coaching can assist older and younger workers in understanding their differing world views and skills, learning how their different experiences affect their view of the workplace, and discovering how they can effectively work together to achieve organizational goals. Coaching can also help identify and eliminate generational stereotypes.
Coaching can help individuals better understand how their counterparts are similar to and different from them and how to interact more effectively with all of their colleagues.
A job coach is a person who provides specialized on-site training to an employee with a disability. Typically they help the employee learn the job and perform it accurately, efficiently, and safely; they may also help acclimate the employee to the work environment. Employers should be aware of and not be influenced by myths about job coaches.
Have a question about coaching programs?
External Coaching Organizations
International Coaching Federation: Based in Lexington, Ky., this nonprofit federation describes itself as the largest worldwide resource for business and personal coaches. It offers a Master Certified Coach credential.
Worldwide Association of Business Coaches: This Canadian organization serves the U.S., Canada and overseas business coaching markets.
College of Executive Coaching: This California institution provides personal and executive coach training, coaching services, and leadership development.
National Career Development Association: A division of the American Counseling Association, the NCDA is based in Broken Arrow, Okla.
Center for Creative Leadership. This nonprofit institution, with offices in San Diego, Calif., Colorado Springs, Colo., and Greensboro, N.C., focuses exclusively on leadership.
Center for Coaching Certification. This Florida organization offers business, career, executive, life and wellness coach training and coaching certification.
Expert Advice
Watch these SHRM podcasts and webinars for more advice from professional coaches, earn professional development credits (PDCs), and gain a competitive edge.
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