According to a 2009 article in the Harvard Business Review, the median hourly salary of an executive coach is $500. If we assume that a coach is hired for 10 sessions to help an executive, the total cost will be $5,000. Let’s imagine that the executive’s salary is $250,000 per year. Is it worth it to spend $5,000 to protect a $250,000 investment? Ultimately, that may depend on the efficacy of the coach.
According to the authors of this study, when compared to a control group, 20 executives from a Norwegian Fortune 500 company who received coaching had improved goal-setting skills, higher levels of self-efficacy, and better contributions to organizational strategy. So, at least in this setting, the coaching did seem to add value, and at $500 an hour, it’s a relative bargain.
Moen, F. & Federici, R.A. (2012). The effect from external executive coaching. Coaching: An International Journal of Theory, Research and Practice, 5(2), 113-131.