How Coaching Will Shape The Modern Enterprise

Business trends in coaching 2023

The coaching industry has matured, becoming an integral part of learning and development (L&D) programs for workforces big and small, and in nearly every sector. In fact, some have claimed coaching is the world’s second-fastest-growing sector, with predictions the sector may grow to $20 billion in the coming decade. Positive growth is confirmed by our recently released Business Trends in Coaching survey that found a majority (89%) of coach buyers expect to increase coaching investments by 1-10% over the next year, in spite of economic challenges.

The coaching industry’s rapid expansion will result in a substantial impact on modern enterprises. But how will businesses use this highly versatile intervention, and where will it create the most significant impact? 

Let us examine how businesses will implement coaching in 2023 and beyond — and how the growing popularity of coaching will mold the modern-day work experience.

Coaching Will Enable Corporate Transformation Efforts

The business world is engaged in rapid transformation driven by world events from economic pressures to technological revolution, and from changing employee expectations about the nature of work to an aging workforce. In the meantime, executives are still struggling with creating successful, flexible work models and navigating changes to the associated policies and processes. Of course, organizations are also trying to take positive and meaningful steps to address diversity, equity, inclusion and belonging (DEIB).

To support this transformation, nearly half (47%) of organizations will reskill or upskill their workforces, while 37% will restructure or reorganize and 36% will increase internal recruiting or talent mobility. This continuous organizational transformation — both the external factors causing change and the internal actions responding to it — can create significant uncertainty in the workforce. 

As companies struggle to stay agile and change rapidly, they will increasingly turn to coaching as an essential lever in driving continuous transformation among their workforces. A personalized and holistic coaching experience enables employees to work one-on-one with a coach that can help them address critical skills gaps or areas for professional growth, navigate their workplaces’ — and the world’s — uncertainties and develop resilience to keep going when things get tough.

Because coaching is highly personal and customizable, the evidence suggests it is one of the most impactful interventions for driving just about any change or building any capacity.  

Coaching Will Enhance Personalized, Experiential Learning

Experiential learning is learning by doing, and even better, learning by reflecting on that doing. In other words, employees play an active — or at least collaborative — role in their learning experience. 

This type of active learning is proven to be highly effective. In fact, a University of Minnesota study found that “hands-on, integrative and collaborative active learning experiences lead to high levels of achievement and personal development.” 

Personalizing the learning experience is just as critical, especially as employees are inundated with digital distractions. Many of these digital distractions tug at people’s attention spans using algorithms that tailor content and raise society’s expectations for relevant, valuable information in every aspect of life. 

Rather than subjecting employees to traditional learning formats like one-size-fits-all training, companies are modernizing traditional professional training. Continuous professional development can now be delivered via a seamless digital tool that provides personalized and engaging mentoring and coaching. 

These highly experiential and ultra-personalized L&D solutions maximize the transfer and application of new skills. For example, a coach may roleplay a real-life situation that challenges the employee to navigate interpersonal conflicts in the workplace. This neutral professional can then ask the employee questions, requiring them to self-reflect on their performance and think through implementing the strategies into their own context.

Coaching Will Usher Gen Z Values into the Workforce

For the first time, there are five generations in the workforce. While scientific research shows more limited generational differences than most people assume, Generation Z, born after 1996, brings some unique demographics with them as they age into the workforce.

Gen Z is more ethnically and racially diverse than an average member of the previous generation. Their educational attainment is also expected to be higher than older age groups.

So what do these demographics mean for the modern-day workforce? This generation of digital natives is deeply purpose-driven, wanting to contribute to a workplace that aligns with their values. Consequently, Gen Z will push for workplace change — with inclusion and equity leading the way. 

Forward-thinking organizations will lean on coaching to help support their core values and build a culture of equity. Personalized coaches can help employees embrace their colleagues’ uniqueness, instilling empathy and understanding while increasing self-efficacy and openness. 

As the coaching industry evolves, businesses will increasingly recognize one-on-one coaching as an invaluable solution for employees’ growth and learning. In 2023 and beyond, coaching will facilitate seamless corporate transformation efforts, meet the demand for experiential learning, and champion inclusion as the real future of work. 

Jonathan Passmore, Ph.D., is Senior Vice President of coaching at CoachHub, a professor at Henley Business School, as well as a global thought leader in behavioral change, listed in the Thinkers 50 and Global Gurus lists. He is a chartered psychologist, and holds five degrees, including an MBA and doctorate in psychology. He is an accredited coach with the ICF and EMCC, as well as holding qualifications in team coach and coach supervision. He is the author of ‘The Coach Buyers Handbook’, published in January 2023. Connect Jonathan Passmore