The coaching industry is growing rapidly worldwide – and at a record pace, according to research by the International Coach Federation. Magdalena Mook reports
The coaching industry is experiencing a significant evolution. The number of coaches worldwide is increasing at a record pace, according to the International Coach Federation (ICF)’s latest global coaching study, and expansion into new parts of the world is bringing the benefits of professional coaching to more and more people.
In line with its commitment to understanding how coaches work, the benefits of the services they provide, and the ultimate impact coaching has on individuals, businesses, relationships and overall quality of life, the ICF commissioned the first global study of coaching in 2006 to establish a baseline understanding of the coaching profession. This was followed by a second survey in 2011 to determine the growth of the industry worldwide, and to identify the major opportunities and challenges coaches face. Nearly a decade after its first global study was released, the ICF commissioned its third survey, conducted by PwC, receiving a record-breaking 15,380 responses from both ICF members and non-ICF members across 137 countries. The resulting 2016 ICF Global Coaching Study, the newest piece of industry research available, provides the most up-to-date picture of the coaching profession and its impact around the world.
Size and scope of the industry
A key objective of the 2016 ICF Global Coaching Study was to determine the size and scope of the coaching industry on a global level, while also gathering information about the profession in specific regions. The study shows that there are approximately 53,300 coach practitioners worldwide. Among coaches with active clients (90% of respondents), average annual revenue from coaching alone equals US$51,000, and the estimated global total revenue from coaching in 2015 was US$2.356 billion, a 19% increase from the 2011 estimate.
The growth displayed in the study, particularly related to the number of coach practitioners and global revenue, demonstrates that the coaching profession is continuously creating opportunities for individuals around the world to thrive in this highly impactful and widespread community.
Managers and leaders using coaching skills
As an addition to internal and external coach practitioners, organisations are becoming insistent that managers and leaders within the organisation provide a strong coaching culture. While the industry does not specifically recognise managers and leaders within organisations as coach practitioners, the growth of this adapted application of coaching skills is having a significant positive impact.
In fact, coaching in an organisation is the fastest growing segment in the industry. This is creating a “coaching continuum” that is expediting the profession’s evolution.
The coaching continuum also signifies an increased awareness of the benefits of coaching, particularly for teams and workgroups, which is emerging as a fast-growing trend.
For the first time, the 2016 study includes data specific to individuals who self-identify as managers and leaders who use coaching skills within their organisations. Among those respondents, 54% described themselves as managers and leaders within their organisations; the remaining 46% said they use coaching skills in their roles as human resources or talent development managers or directors.
Measuring effectiveness
The coaching profession would presumably not achieve such explosive growth if clients were not experiencing true benefits from engaging with a coach. The study shows that coach practitioners take evaluations seriously, with the majority using one or more methods to measure the impact and effectiveness of their coaching. Specifically, 75% of coach practitioners use client self-assessments, while 64% focus on benchmarking and 52% conduct feedback interviews.
Documenting coaching goals and benchmarking progress has become an increasingly popular method in North America (73%) and Oceania (69%) within the past four years; although notably less popular in Latin America (48%) and Eastern Europe (54%), both of which are currently significantly below the global average (64%).
Users of coaching
According to the 2015 survey, approximately 6,000 females (54%) and 5,100 males (46%) make up client proportions by gender, which remains consistent from 2011. The female share remains highest in North America (58%), which is almost identical to 2011 (59%). The study shows the same stability in Western Europe (52%) and Latin America (51%).
The study also shows that among coaches in business organisations, the male/female split is evenly balanced. However, coach practitioners specialising in executive coaching serve a majority of male clientele (55%). That said, the majority of clients for coaches in specialties such as life vision and enhancement (69%) and career (59%) are comprised of females.
Compared to 2011, the 2015 results indicate a shift in the age composition of clients toward older age groups, with the proportion aged 45 and over (5% increase from 2011). Professional coaches reported that clients in the 45-plus age bracket are generally made up of executives, as well as business owners and entrepreneurs.
The increase in the proportion of clients over the age of 45 is indicated in the report; however, the report also shows that clients tend to be on the younger scale (26-34 years old) in emerging regions such as Eastern Europe (29%) and the Middle East and Africa (25%).
However, coaches who serve team leaders and staff members reported that the majority of clients are aged 45 and under. Included in the group of team leaders and staff members are millennials whose ages range from 18 to 34. According to the study, approximately 28% of team leaders and 42% of staff members fall in the millennial group. This estimate suggests that millennials are likely seeking motivation, feedback and inspiration, especially in their workplace.
Credentialing
The newly published findings analyse the expectations of modern-day clients in relation to their coaches. The 2016 study indicates a degree of consensus among coach practitioners and managers and leaders using coaching skills when asked about client expectations. The majority of coach practitioners (77%) and managers and leaders (72%) agreed that their clients and colleagues expect coaches to be certified and credentialed.
Obstacles and opportunities
As intended, the 2016 ICF Global Coaching Study indicates key issues and projects future trends within the coaching world. The prevalence of untrained coaches proves to be the main obstacle identified in the report. The study shows that coach practitioners (44%) ranked untrained individuals as the biggest obstacle in coaching.
According to the 2016 study, responses from managers and leaders using coaching skills also align with the obstacle indicated by coach practitioners.
Lastly, the report provides an overview of the main opportunities for coaching in the coming year. The forecast was also unanimous between coach practitioners, and managers and leaders using coaching skills.
Both groups indicated numerous opportunities for the coaching profession for the next 12 months, including increased awareness of benefits, return on investment (ROI) and expectations (ROE), as well as improved general perception of coaching.
The top opportunity indicated by coach practitioners (38%) and managers and leaders (35%) is the increased awareness of benefits from coaching.
Designed to provide the complete picture of today’s coaching profession worldwide, the 2016 ICF Global Coaching Survey is available in nine languages. The study addresses the industry’s most pertinent topics, including the coaching continuum, training and credentialing, the coaching client, the interaction between coach and client, the size and scope of the profession, key business indicators, and key issues and future trends.
Magdalena Mook is CEO and executive director at the International Coach Federation
- You can buy the final report at: Coachfederation.org/2016study