Executive Coaching Fees, Rates, and Pricing
Executive Coaching Fees and Rates
How much does executive coaching cost? Executive coaches offer different packages and pricing depending on what is required.
Large companies hiring coaches for executives will see the highest hourly cost. These large organizations are the least likely to spend any money on executive coaching. In 2008, the median hourly executive coaching fee was $425.50. The most commonly stated fee was $500 or more. A 2012 study found similar rates, from $200 to $600 per hour or higher.
Companies with fewer employees and less revenue are met with vastly differing fees, from either end of the extreme. A 2010 survey showed most small to medium businesses paid a rate of around $220 to $340 per hour. Franchise coaches cost these businesses less, with a one day event costing between $1,295 and $5,000, followed by billing of $995 to $10,000 monthly for a year.
In some cases with executive level coaching, if the service is being provided or paid for by the company, there will be other people involved. The stakeholders will be involved at some level when the service is through the company. Although the coach will always try to maintain a private, confidential relationship with the client, it is important to be able to provide an outline of what is being discovered and accomplished through the process. The invested parties will want to see that the coaching is actually producing something beneficial to their employee as well as the company.
Factors That Affect the Cost of Executive Coaching
As with any type of service, the pricing, packages, and rates will depend on many factors including but not limited to:
- the expertise of the coach
- the amount of assistance and time you require
- the specific area(s) you need help with and their complexity level
- the amount of demand for that particular coach
Hiring independently versus through a business may also influence cost. For tight budgets, online or telephone coaching is often less costly than bringing in a professional for in-person coaching. If a business or individual can foot the bill of in-person coaching, invaluable insight and experience may be gained over remote coaching.
The prices tend to be lower with online coaching compared to in-person coaching due to the convenience factor. It’s much easier to find the exact type of coach you need and schedule meetings online rather than worry about a commute. Also, finding the right online coach is easier and more convenient than trying to find someone who is within close proximity to you who may not specialize in what you need them to. Generally, you can find executive level coaching online for large businesses anywhere from $50-$5,000 per hour. It also varies greatly depending on how often you meet and how much time you require from your coach. Telephone-based coaching is also available. For this, cost is calculated by minute or by sections, such as 20 or 30 minute blocks. Cost ranges from $200 for twenty minutes to $1,000 per hour.
Is it worth the cost?
Executive coaching is becoming increasingly more common due to the numerous benefits associated with it. More and more high profile executives have opened up about enlisting the services of a coach or mentor to help them reach higher and perform more effectively. It’s important to never stop investing in yourself even after you’ve put away the college textbooks and initial training and certificate programs that prepared you to do what you do. Continually challenging yourself to increase your knowledge in your field or stay on top of trends that affect your business may positively impact the success of your business. This is an investment that is low risk because once you pay to receive the guidance and accountability of a coach, your performance and position is almost guaranteed to improve.
A trained executive level coach can come in and help push you past your perceived limits and into a more competitive and efficient place in your career. Hiring an executive coach shows that you are serious about your future and ready to make some changes. Throughout the coaching process, you should be able to be measure and evaluate results so you and your coach can look back and measure how much you have invested – and how much it has paid off.
The coaching process is all about challenging the client and encouraging them to step out of their comfort zone in order to succeed at a higher level. The executive coaching process acknowledges that the client is highly capable and motivated already and deserves to have a strong say in how the process will play out. The coach is there to notice the little things, present options, motivate, guide and hold people accountable but not to babysit and dictate. People tend to be more motivated and productive when they are going after goals and plans that they believe in and understand. When coaching is on your terms and you feel more invested in the planning process, it will be much more rewarding to follow through and achieve your goals.
What is executive coaching?
Executive coaching encompasses a broad spectrum of issues including personal, business and organizational issues. The main goal of coaching is to find areas that are often overlooked or undervalued and develop those areas to transform the quality and efficiency of the executive and their business. Coaches provide services that aid in solving problems and discovering the critical flaws that are stalling development as well as initiating and encouraging continued learning that will put their clients on the fast track to their goals.
Who is executive coaching for?
Executive coaches can be either hired by a company to improve the performance and/or behavior of their higher level employees or those who are in leadership positions. However, with more increasing popularity and success coming from this type of coaching relationship, people have been hiring executive coaches for themselves. This can be on a private level or funded by the company but in general, more people are expressing interest in coaching to help them reach their goals within their careers and companies.