It’s estimated that in 2014, 161.7 million employees around the world will leave their jobs in search for new, better ones. This trend is set to accelerate. Average employee turnover rates over the next five years are predicted to rise from 20.6 to 23.4%, and the number of global departures in 2018 will stand at 192 million.
According to the study conducted by global management consultancy Hay Group, conducted in association with the Centre for Economics and Business Research (Cebr), emerging markets are set to feel the brunt of the turnover spike first, beginning this year, while developed economies will start to see departures with a peak in 2014, when conditions improve.
To prevent this mass talent exodus, leaders are going to have to find new ways to improve their employee value proposition. One of the ways they can do so is by cultivating a coaching culture. Not only will a coaching culture assist with retention, but it can increase the organisation’s profitability, sustainability and resilience too.
A coaching culture is defined by the Center for Creative Leadership as an organisational setting in which not only formal coaching occurs, but also, most or a large segment of individuals in the organisation practice coaching behaviours as a means of relating to, supporting and influencing each other.
According to Eileen Thayser, Master Certified Coach and owner of CoachTrax, “A coaching culture extends the one-on-one coaching method to all layers of an organisation. It is a behaviour, a communication tool, a means of connection and a way to bring out the best in your people. It’s not about barking orders or quick fixes but rather about inspiring, influencing, empowering and motivating people to be the best they can be – to outperform and discover. It’s really the heart of effective leadership.”
The beauty of a coaching culture is that it is not viewed as a task by employees, but rather as a partnership between the employee and the manager or leader. This relationship encourages independent thinking, innovation and support for the organisation’s long-term vision and goals. It also gives employees the confidence and ability to handle whatever challenges may come their way.
“An employee who has self-confidence, feels empowered, trusted, motivated and inspired to be the best they can be will live up to this self-belief, and is ultimately a happy employee. As we all know, happy employees tend to stay put,” says Thayser.
Thayser provides advice on how business and HR leaders can create a coaching culture:
- Culture change starts at the top: leaders can learn coaching styles and cascade coaching behaviours throughout the organisation. Leaders don’t need to become coaches though – a coaching leadership style is more about replacing command and control styles with exploration, questioning andLeaders can learn a coaching style from their own coaches or can go on a coaching course.
- Focus training efforts on those leaders who have an inclination to coach. Get volunteers to step forward to lead coaching cultures by giving them the opportunity to role-model coaching leadership.
- As people’s behaviours change to be more in line with the emerging coaching culture, reinforce these behaviours through recognition and reward.
- Work out ways where the impact of coaching leadership styles can be measured, so that the organisation can see the bottom-line effectiveness of a coaching culture.
- Integrate formal and informal coaching and mentoring, whether external or internal, with the organisation’s learning and development strategy for maximum impact.
