New DDI Analysis Finds Manager Coaching Lacking, Doubling Risk of Turnover

PITTSBURGH, Pa., July 16, 2024 — DDI, a global leadership company, today released its latest data analysis on the current state of manager coaching, revealing significant gaps that are affecting leadership development and retention across industries. 

The data—drawn from DDI's Global Leadership Forecast 2023 with responses from 1,826 human resource professionals and 13,695 leaders across the world—analyzed how leaders most preferred to develop their leadership skills. While 85% of HR respondents said it will be critical for leaders to develop coaching skills in the next three years, coaching from a current manager ranked at the bottom of leaders’ desired learning methods. The deficiency in coaching is not only hindering leadership growth but also contributing to higher turnover rates. 

“While many companies aspire to build strong coaching cultures to develop their leaders, our research shows a significant drop in the successful execution of these efforts,” said Stephanie Neal, Director of DDI's Center for Analytics and Behavioral Research. “Developing capable internal coaches is proven to boost retention rates, yet it remains an area where organizations are consistently underutilizing their resources.” 

In addition to inadequate coaching, DDI's research highlights the following findings: 

• Demand for Coaching: 31% of frontline leaders want more coaching than they are currently receiving from their managers. 
• Impact on Retention: Companies with strong coaching cultures are 2.9X more likely to be capable of engaging and retaining top talent compared to companies without strong coaching. And, coaching deficiencies increase the risk of turnover among top talent—high-potential employees are 2X more likely to say they intend to leave their organization when they don’t have a manager who is an effective coach. 
• Development Needs: The most common topic leaders want to learn about is coaching effectively, indicating a strong demand for better coaching skills among leaders. 
• Skill of the Future: 85% of HR respondents said it will be critical for leaders to develop coaching skills in the next three years. Effective coaching is shown to improve leaders' perception of their company’s development approach and culture. 
• Business Performance: Leaders who receive effective coaching are 2.7X more likely to feel accountable for being effective leaders—and this increased accountability impacts the bottom line. Companies with strong coaching cultures are 1.5X more likely to be among the top 10% of organizations in financial performance. 

“In my work advising thousands of executives and senior leaders, I’ve found coaching is one of the least-understood leadership skills,” said Matt Paese, Ph.D., SVP of Leadership Insights at DDI. “Leaders mistakenly think they’ll save time by telling their teams what to do rather than guiding them to their own conclusions. The reality? This top-down, prescriptive approach to coaching has detrimental business impacts, disempowering employees and eroding trust.”  

For additional data and insight—including the steps to build a successful coaching culture and how to measure your coaching effectiveness—visit https://www.ddiworld.com/blog/creating-a-coaching-culture. 

About DDI

DDI is a global leadership company that helps organizations hire, promote and develop exceptional leaders. From first-time managers to C-suite executives, DDI is by leaders' sides, supporting them in every critical moment of leadership. Built on five decades of research and experience in the science of leadership, DDI's evidence-based assessment and development solutions enable millions of leaders around the world to succeed, propelling their organizations to new heights. For more information, visit ddiworld.com.

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