HR today has evolved into a strategic function, says Victoria McLean, CEO, City CV – so make sure you invest in the people who deliver it.
HR is responsible for three key things: shaping culture, strengthening retention and ensuring the business is ready for whatever comes next.
In that context, executive career coaching has become an essential lever that drives measurable business outcomes. When senior leaders are empowered to lead with clarity through periods of change, pressure or complexity, and when that empowerment is a proactive investment rather than a last-minute response to the pan getting hot, it hardwires resilience.
The ROI of executive career coaching
First, let’s look at the impact of career coaching on the individual level. According to the Institute of Coaching:
- 80% of individuals who receive coaching report improved self-confidence
- 70% say it enhances their work performance, communication and relationships
When confidence rises, performance follows. When communication improves, so do alignment and trust. All of that flows through to business results. Research shows that organisations investing in coaching programmes constantly outperform those who do not, boasting:
- 27% higher year-on-year revenue growth
- 87% increase in net profit margins
- 225% higher cumulative revenue growth over a five-year period
Clearly, investment in coaching is recouped – and then some. When you look at such impressive, measurable gains, it’s not hard to see what trend is emerging: coaching as a strategic priority for HR, particularly in organisations navigating growth, transformation or succession planning.
Why high performers still need development
There’s a misconception that senior leaders, once they reach a certain level, no longer require external development support. It is thought that their experience will carry them through new contexts, higher pressure and broader remits.
It’s often the opposite that happens. The more senior the role, the fewer opportunities leaders have to pause, reflect and challenge their thinking. They may be relied on for answers, but lack the space to ask themselves difficult questions, or lose the feedback loops that once kept them sharp. As their scope widens, so does the risk of running on autopilot, especially if the environment doesn’t encourage vulnerability or experimentation.
This is why those in senior positions still need development, perhaps more so than early-career professionals or mid-level managers. Coaching brings invaluable insights to executives, helping them:
- Examine how their leadership is perceived and how it influences outcomes
- Identify behavioural patterns that may be limiting their impact
- Develop emotional intelligence and self-awareness, critical for earning trust and navigating internal politics
- Build confidence after setbacks, like restructures, failed initiatives or board-level tension
- Adapt their leadership approach to support different teams and contexts
- Create the right conditions for growth, accountability and engagement, and thereby nurture high-performing teams
- Conquer imposter syndrome by grounding themselves in a steadier sense of authority
These aren’t just ‘soft skills’. They are core drivers of sustainable, high-impact leadership, and they require dedicated attention.
Supporting leadership through change and uncertainty
Coaching becomes especially powerful during inflection points:
- Promotion
- Organisational change
- M&A activity
- Cultural shifts
- Leadership transitions
These are moments when a leader’s default responses are tested. How they communicate, respond and make decisions will shape not only immediate outcomes, but long-term team culture and strategic direction.
The challenge is that those moments are accompanied by high scrutiny and little breathing room. When support is limited, reactive decisions are more likely to follow.
Executive coaching offers a structured, confidential environment in which to work through these decisions with intention. It helps leaders gain perspective, manage stakeholder dynamics and build resilience under pressure, without having to perform or placate.
That’s one of the reasons it’s so effective: executive coaching sits outside the traditional hierarchy, offering a unique objectivity and offering the kind of trust that’s hard to establish internally. For senior leaders who are wrestling with difficult decisions or challenging terrains, that separation matters. It enables more open dialogue and faster progress, because there’s no hidden agenda.
And there’s a bonus benefit that will please HR leaders, too: having access to this kind of external support de-risks major transitions and protects the wider organisation from the ripple effects of underprepared leadership, such as:
- Increased attrition among top performers
- Spikes in employee relations issues
- Loss of confidence from stakeholders and clients
- Increased reliance on HR for soft skills coaching
- Inconsistent implementation of business change
Choosing the right moment (and the right coach)
Timing is crucial. Some organisations wait until an issue arises before investing in coaching, like when performance dips, feedback deteriorates or key talent disengages. While coaching can still be impactful in those moments, it’s far more powerful when applied proactively. For example, when leaders are:
- Preparing for succession or promotion
- Stepping into a role with new strategic or board-facing responsibility
- Developing their narrative for a future NED or portfolio career
- Navigating the first 100 days of a new leadership appointment
- Seeking to define or refine their leadership identity after organisational change
In each of these cases, coaching provides structure, perspective and space for strategic self-development. It also enables HR to support their leaders without micromanaging their evolution.
But effective coaching doesn’t happen by chance; the quality of the coach matters, too. That’s why City CV works closely with HR teams to align coaching engagements with broader leadership goals, whether that’s cultural transformation, retention, succession planning or simply raising the overall leadership bar.
How HR can elevate leadership through intentional support
The senior leaders driving your organisation forward are not immune to fatigue, doubt or misalignment. Nor are they always best placed to diagnose the root causes of a plateau or underperformance. Coaching brings those challenges into focus, then helps leaders move through them with awareness, skill and impact.
In a market where leadership strength is one of the few sustainable competitive advantages, HR has an opportunity to reshape how executive development is delivered. Coaching empowers your most critical people to lead better, sooner – and with greater long-term value to the business.
That’s what makes executive coaching worth the investment. In the hands of a strong HR function, it becomes one of the strongest enablers of business performance.
