The Explosive Growth In Coaching: One Of The Biggest Trends In Business
This week BetterUp announced another $300M round of funding, valuing the company at $4.7 Billion. Recurring revenues are already over $100 Million this year more than doubling year over year. Vendors like SpringHealth (Unicorn on the therapy side of coaching), CoachHub (fast follower to BetterUp), Torch (coaching integrated into L&D), and others are now riding this wave.
As Alexi Robichaux (CEO) puts it, the world of benefits, learning, and employee development have merged. And I really have to agree. And the “digital health” industry itself has received more than $20 Billion this year, showing how explosive this new combination can be.
If you think about it as a CEO, the connection is obvious. We want our employees to feel healthy, energetic, engaged, and ready. Our Employee Experience research points this out in detail: all these benefits program come together.
Later this month we’re going to be launching a massive study on this market, one we call The Healthy Organization. And what you’re going to see is that wellbeing programs, coaching, development, and leadership coaching are all connected together. In fact the one silver lining of the pandemic is that it taught us all a big lesson: if you don’t focus on the “whole person” at work, all these individual HR programs don’t add up.
Consider what Alexi tells me about his clients (Chevron, for example). Before the use of coaching, managers had sporadic leadership development training and many of them just struggle to learn to lead. Remote workers and staff members try to “learn to deal with stress” on their own. The wellbeing strategy is clear at the CEO level, but the head of compensation and benefits often sees these as “programs” and measures results through utilization.
BetterUp, which integrates development, coaching, assessment, and career growth, ties all this together. So this massive spending on “benefits” (which sits in the comp department) and the similarly massive investment in training (which sits in L&D) can now come together.
Chevron: Precision Development At Scale
I’ve interviewed Chevron in detail and the impact of BetterUp is amazing. Let me share some details here.
Since the start of the program in July of 2020, more than 1,200 Chevron leaders received personalized development. The Net-Promoter score of the experience is +65 (my last study of corporate L&D found that the L&D function itself has a negative net-promoter score), and 94% of these leaders say “coaching makes them more effective at their job.”
And it gets even better. Through a new offering called Coaching Circles, Chevron leaders can come together in small global groups to discuss and learn through expert facilitated discussions. These programs have now reached more than 3,000 Chevron leaders in 15 languages.
Other benefits from leaders (analyzed through self-reflection and assessment) at Chevron include a 15% increase in employee recognition, 12% improvement in business alignment, 13% improvement in problem-solving, and 16% improvement in strategic planning.
And in the case of Chevron, this initiative has helped the company transform and improve its entire performance management process. As the energy industry goes through massive change, this benefit alone more than cost-justifies the investment.
Where Is All This Going?
As you’ll read about in our upcoming Healthy Company research, Wellbeing at Work has come a long way. Going back to the Cadbury employee health and living facilities in the 1800s, today companies want to provide an end-to-end “healthy experience” for employees.
This brings together the disciplines of employee engagement, development, job design, and coaching into one integrated view. Add a dose of technology, and you get AI-enabled coaching, “whole-person” assessment, and a myriad of digital health programs added on. It’s a new whole-person focus for employees, and this brings the entire function of HR together. All in the flow of work.
And the vendor market comes together too. Vendors like BetterUp, which focuses on the whole employee “system,” will transform the way we think about corporate training, wellbeing, and leadership.
As I’ve told people many times, if there’s one thing we’ve learned from the pandemic, it’s about the “unquenchable power of the human spirit.” When we give people the right support and a safe environment, they do amazing things for your company.
Start thinking about all your HR programs as investments in the “whole person” at work. It will pay off many times over.