Building a Coaching Culture

with Millennial Leaders

SIGNATURE
SERIES
AN HCI INSIGHT PARTNERSHIP
TABLE OF CONTENTS Executive Summary 3
Definitions of Key Terms 5
Introduction 6
Building a Coaching Culture 7
The Value of a Strong Coaching Culture 9
Coach-specific Training 10
The Budget for Coaching 12
Access to Coaching 13
Presence of the Coaching Modalities 15
Understanding the Needs and Values of Millennial Leaders 16
Generational Similarities and Differences in Workplace 17
Preferences
Generational Similarities and Differences in Values 19
Developing your Millennial, First-Time People Managers 21
Competencies of First-time People Managers 22
First-time People Manager Development 23
Coaching for Leadership Development 26
Training Leaders to Use Coaching Skills 29
Conclusions and Recommendations 30
Appendices
End Notes 32
About the Research 33
Survey Respondent Demographics 35
About the Research Partners 37

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EXECUTIVE SUMMARY Mass retirement of Baby Boomers and inadequate succession planning
present an opportunity for coaching in the workplace. First-time people
managers, along with Millennials in executive leadership positions, are
primed to benefit from partnering with a coach and receiving training
on how to use coaching skills with their peers and team. By applying
coaching skills, managers and leaders of all ages are role modeling this
skill set for younger employees and future leaders.

For the fourth consecutive year, the Human Capital Institute (HCI)
and the International Coach Federation (ICF) partnered to research
coaching cultures in organizations. This year’s research focuses on
coaching and leadership development for first-time people managers
and emerging leaders—many of whom are members of the Millennial
generation (i.e., individuals born between 1983 and 1996). In a study
of 670 Human Resources (HR), Learning and Development (L&D), and
Talent Management (TM) professionals; internal coach practitioners;
managers; and individual contributors across multiple generations, the
key research findings include:

Most generational differences appear to be myths.

The top three work preferences are the same across most age
groups: development opportunities, career advancement and
flexibility at work.
Recognition for quality work, manager support and opportunities
to share feedback with decision-makers are the top values
endorsed by all age groups at a proportion of 67% or more.
Values did not widely differ among the generations in this
survey with regard to corporate social responsibility, narcissistic
tendencies and short-term tenure.

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Coaching skills are considered essential competencies for first-time
people managers.

Coaching and developing others (44%), engaging and inspiring

others (41%), and having emotional intelligence (35%) are the most
valuable skills and competencies for first-time people managers
according to respondents.
Only 36% of organizations offer coach-specific training to these
new leaders. Managers/leaders using coaching skills are trained
most often by L&D departments, HR departments, and internal
coach practitioners.
Sixty-five percent of organizations aim to expand the scope of
managers/leaders using coaching skills in the next five years.

A business case can be made for investing in a strong coaching

culture.

Organizations with strong coaching cultures indicate recent

revenues above that of their industry peer group (46% compared
to 39% of other responding organizations) and report higher
employee engagement (61% and 53%, respectively).
Among those who have received coaching, a strong majority
(80%) report positive impacts resulting from the coaching
engagement. Among they areas where they report improvement
are their work performance, communication skills, productivity,
well-being, and business management strategies.

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DEFINITIONS OF KEY TERMS
Coaching: partnering with coachee(s) in a thought-provoking and
creative process that inspires them to maximize their personal and
professional potential.

Professional coach practitioner: someone who provides an ongoing

partnership designed to help coachees produce fulfilling results in their
personal and professional lives. The coach’s job is to provide support to
enhance the skills, resources, and creativity that the coachee already has.

Internal coach: a professional coach practitioner, who is employed

within an organization and has specific coaching responsibilities
identified in their job description.

External coach: a professional coach practitioner, who is either self-

employed or partners with other professional coaches, to form a
coaching business.

Manager/leader using coaching skills: a leader who uses coaching

knowledge, approaches, and skills to create awareness and support
behavior change.

Coach-specific training: training that teaches coaching competencies

and/or how to apply technical skills in a coach-like manner and
encompasses theories and core coaching competencies designed to
prepare an individual to practice as a professional coach.

Accredited coach training program: any program consisting of coach-

specific training that has met the rigid criteria required to be approved
by a professional coaching organization.

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The preferred management INTRODUCTION
style is moving from
The generation identified as Millennials (born 1983-1996) makes up
command and control
the largest part of the U.S. workforce.1 Millennials are also predicted
to a new style based to make up half of the global workforce by 2020.2 For some time,
on inclusion, this demographic segment has been an intensive focus of research

involvement, and on workforce trends. The growth of Millennials into management

and executive positions, however, prompts new consideration of the
participation. evolving capacity and needs of Millennial leaders. A study released in
2015, for example, found that 73% of Millennials aspired to positions of
leadership within five years.3

Characterizations of generational demographic groups can yield

valuable insights, but they can also over-generalize in misleading
ways. Myths that Millennials require greater workplace recognition and
guidance, and that they show less loyalty to the organizations to which
they belong, have been largely debunked.4 Instead, evidence shows
that Millennials as a whole crave opportunities to explore career growth
and develop their leadership skills5 —a desire that is best understood
by career stage and age rather than being from a particular generation.
While 54% of Millennials desire additional technical training, 60% want
training from their employer in leadership skills.6 Most likely because
they are figuring out their career paths and refining their skill sets, they
also have a preference for more frequent feedback from their manager
compared to other age groups.7

As management styles evolve, Millennials don’t want “bosses.” Instead,

they want “coaches” who can help them reach career development
goals.8 The preferred management style is moving from command
and control to a new style based on inclusion, involvement, and
participation.9 Most organizations understand the value of coaching
but few have realized the full effect a strong coaching culture has on
increasing employee engagement and sustaining high organizational
performance.10 The combination of external and internal coaches, along
with training managers and leaders to provide coaching skills, appears
to be key to developing a strong coaching culture and addressing the
development needs of emerging leaders.

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This Signature Series research, conducted jointly by HCI and ICF,
explores how coaching strategies can be more effectively deployed
to address the specific needs of both existing and emerging Millennial
leaders along with the needs of other generations in the workforce.
Using a combination of surveys and interviews with subject-matter
experts, we continue to explore the best practices for building a strong
coaching culture.

BUILDING A COACHING CULTURE

Traditionally, coaching has been a powerful developmental tool
reserved for executives. As more leaders see the power of coaching for
optimized performance and higher engagement, they are expanding
access to coaching for all employees through various modalities,
including professional coach practitioners. Using an index of relevant
criteria, it was determined that one in four (25%) of responding
organizations have a strong coaching culture. Although this research
series is not a longitudinal study and the composite has changed
slightly over the years, the share of organizations holding this distinction
has increased steadily since the first HCI/ICF study on coaching cultures
was published in 2014 (13% in 2014, 15% in 2015 and 17% in 2016). In
2017, a total of 25% (n = 120) of respondents have strong coaching
cultures at their organizations, determined by meeting at least five of
the criteria below:

Strongly/somewhat agree that employees value coaching.

Strongly/somewhat agree that senior executives value coaching.
Managers/leaders (and/or internal coaches) received accredited
coach-specific training.
Coaching is a fixture in the organization with a dedicated line item
in the budget.
All employees in the organization have an equal opportunity to
receive coaching from a professional coach practitioner.
All three coaching modalities (internal coach practitioners,
external coach practitioners, and managers/leaders using
coaching skills) are present in the organization.

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FIGURE 1 Strong coaching culture composite with percentage of respondents
who indicate the presence of each criterion.

Employees value Senior leaders

C value

79% 71%

Accredited coach Dedicated line item

training BUDGE
T in budget
.....$
.......
Coaching $

60% 51%
$
$
$
$
$
$

All have opportunity All three modalities

for coaching from present
practitioner
48% 37%

These criteria are most often met at medium-sized companies;

organizations with 5,000-10,000 employees have the highest rate of
strong coaching cultures.

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“The minute you expose The Value of a Strong Coaching Culture
people to any type of
Among the organizations surveyed by HCI and ICF since 2014, a growing
coaching…people proportion have strong coaching cultures, suggesting that coaching is a
immediately powerful tool to develop the potential of employees and drive business

understand the value.” success. Similar to our previous findings, a strong coaching culture
positively correlates with higher employee engagement and stronger
—Alison Hooker financial performance. Organizations with strong coaching cultures report
Americas Chief Talent that 61% of their employees are “highly engaged,” compared to 53%
Development Officer, EY
from organizations without strong coaching cultures (Figure 2). In terms
(retired)
of financial impact, 46% of respondents from organizations with strong
coaching cultures report their 2016 revenue to be above their peer
group, compared to 39% from all other organizations (Figure 3).

The business and individual coaching outcomes help demonstrate its

business value. Seventy-nine percent of respondents state that their
employees value coaching and 71% report that their senior leaders
value coaching.

FIGURE 2 Highly engaged employees by coaching culture.

Percentage of employees 61%

who rated themselves “highly
engaged” 53%

Strong coaching culture (n = 107) All others (n = 224)

FIGURE 3 2016 revenue growth in relation to industry peer group by coaching

culture.

46%
Above
39%
2016 Revenue Growth

46%
On par
50%

8%
Below
11%

Strong coaching culture (n = 115) All others (n = 308)

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 Coach-specific Training
Regardless of the coaching modality, successful coaching requires
experience and training. Researchers have found that it takes managers
and leaders between three and six months to become comfortable with
using coaching skills.11 Managers and leaders who use coaching skills are
trained most often by L&D departments, HR departments, and internal
coach practitioners. Nearly half (47%) of all respondents reported that their
organizations train managers/leaders from a program that was accredited/
approved by a professional coaching organization (such as the International
Coach Federation) and 35% said their managers and leaders receive training
from a similarly accredited/approved university-based program (Figure 4).
These options have increased from 32% and 16%, respectively, in 2016.

FIGURE 4 How is coach-specific training currently offered to your managers/

leaders using coaching skills?
Through our Learning and
68% 16% 16%
Development department

Through our HR department 64% 15% 20%

By internal coach practitioners 59% 14% 27%

By external coach practitioners 53% 15% 32%

From a program that was

accredited/approved by a 47% 14% 39%
professional coaching organization

From a program that was NOT

accredited/approved by a 39% 12% 48%
professional coaching organization

From a university-based program

that was accredited/approved by a 35% 13% 52%
professional coaching organization

From a university-based program that

was NOT accredited/approved by a 27% 12% 61%
professional coaching organization

Yes, we offer No, we don’t offer, but No, we don’t offer

plan to in the future

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 Internal coach practitioners are most often trained by other internal
coach practitioners and through L&D and HR departments. The
proportion trained in an accredited/approved program has increased
since 2016. Fifty-five percent of respondents say their organization’s
internal coach practitioners receive training from a program that was
accredited/approved by a professional coaching organization and 42%
say their internal coaches receive training from an accredited/approved
university-based program (Figure 5). These options have increased
from 45% and 24%, respectively, in 2016.

FIGURE 5 How is coach-specific training currently offered to your internal coach

practitioners?

By internal coach practitioners 74% 13% 13%

Through our Learning and

71% 18% 12%
Development department

Through our HR department 70% 12% 19%

From a program that was

55% 18% 27%
accredited/approved by a
professional coaching organization

By external coach practitioners 54% 16% 30%

From a university-based program

that was accredited/approved by a 42% 16% 42%
professional coaching organization

From a program that was NOT

accredited/approved by a 41% 17% 42%
professional coaching organization

From a university-based program

that was NOT accredited/approved
34% 14% 52%
by a professional coaching
organization

Yes, we offer No, we don’t offer, but No, we don’t offer

plan to in the future

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 The Budget for Coaching
Overall, 51% of organizations in our survey have a dedicated line item
for coaching in their training budget, up from 31% in 2016. Organizations
with a strong coaching culture are almost three times more likely to
have coaching as a line item in their budget (95% versus 32% from all
other organizations).

Overall, organizations allocate 37% of their training budget for coaching

initiatives. This spend has increased over the past four years (11% in 2014,
14% in 2015 and 23% in 2016). Organizations with strong coaching cultures
allocate significantly more (53%) of their training budget toward coaching
initiatives (compared to 29% of all other organizations; Figure 6).

FIGURE 6 Training budget allocation by coaching culture.

Percentage of training budget 53%

allocated for coaching initiatives 29%

Strong coaching culture (n = 107) All others (n = 195)

“There is a deeply held belief by our most senior leadership

team that supporting people and getting clarity
around where they are, what they want to contribute, and
what’s getting in their way is paramount. There really isn’t
a better dollar spent. Every year we see an increase in the
budgetary support we get, the number of coaches that we
have, and the amount of people we can reach.”
—Alison Hooker
Americas Chief Talent Development Officer, EY (retired)

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 Access to Coaching
Organizations with strong coaching cultures (89%) provide access to
a professional coach practitioner across all levels of the organization.
Overall, 48% of respondents report that everyone in their organization
has an equal opportunity to receive coaching from a practitioner.
This proportion has increased since 2015 (16%) and 2016 (30%), and
smaller-sized organizations are more likely to offer this opportunity to all
employees (Figure 7).

FIGURE 7 Percentage of organizations with equal opportunity for coaching

by a professional coach practitioner, by number of employees in
respondent’s organization.

11%
Under 100
12%

31%
> 100 and ≤ 1,000
36%
Number of employees

25%
> 1,000 and ≤ 5,000
22%

9%
> 5,000 and ≤ 10,000
17%

14%
> 10,000 and ≤ 50,000
6%

10%
> 50,000
7%

All other organizations (n = 208)

Equal access to coaching professionals (n = 195)

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 Most employee segments have access to managers/leaders using
coaching skills and internal coach practitioners, but access to external
coach practitioners appear to be reserved for those in senior-level
positions and high potentials (Table 1). Compared to previous studies,
there is a noticeable difference in the proportions of internal and
external coaches present in organizations. The budget for coaching
has also increased over the past four years. These changes may be
due to sampling bias where individuals familiar with coaching at their
organization were more likely to complete the survey.

TABLE 1 Which modalities are available for each of the following employee
segments?

Managers/leaders using
Modalities Internal coach practitioners External coach practitioners
coaching skills
Available to: 2017 2016 2015 2017 2016 2015 2017 2016 2015
High potentials 79% 37% 39% 67% 41% 39% 74% 72% 58%
Entry-level 69% 36% 27% 42% 10% 3% 75% 77% 69%
Mid-level 81% 38% 40% 54% 23% 14% 79% 78% 74%
Senior-level 74% 32% 33% 79% 55% 61% 70% 65% 48%

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 Presence of the Coaching Modalities
Perhaps unsurprising given the results from previous studies, managers
and leaders using coaching skills is the most prevalent modality (Table 2).
However, organizations with strong coaching cultures realize the unique
value contributed by each of the three coaching modalities. Seventy-
six percent of organizations with strong coaching cultures use all three
modalities, while one-third (37%) of other organizations use all three.

Sixty-five percent of organizations indicate that they intend to expand

the scope of managers/leaders using coaching skills in the next five
years (Figure 8). As the presence of managers/leaders using coaching
skills becomes more mainstream, the proportion of organizations that
say they plan to increase scope is down from 81% in 2014 and 73% in
2016. For external coach practitioners, half the respondents report the
intent to maintain current levels, while a still notable share (42%) indicate
plans to expand this modality. An even larger share of respondents
(55%) indicated plans to expand their use of internal coach practitioners.

TABLE 2 Percentage who offer the three types of coaching modalities at their
organization.

Modalities 4 yr. mean 2017 2016 2015 2014

External coach 59% 60% 58% 65% 53%
Internal coach 57% 66% 55% 57% 50%
Manager/leader
85% 84% 91% 84% 82%
using coaching skills

FIGURE 8 What are your organization’s plans for this modality within the next
five years?
External coach practitioners
42% 50% 8%
(n = 350)
Internal coach practitioners
55% 40% 5%
(n = 377)
Manager/leader using
65% 32% 3%
coaching skills (n = 403)

Expand scope Maintain scope Reduce scope

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 UNDERSTANDING THE NEEDS AND VALUES OF
MILLENNIAL LEADERS
A transition to a strong coaching culture requires a change in
management style. We asked respondents to describe the predominant
management style at their current organization and then to describe the
most effective management style. A total
“Coaching is one of the instruments that we see can
of 91 unique categories emerged; the most
really boost performance and also frequently cited are displayed in Figures
help realize potential for people. We see it as 9 and 10. While the typical respondent
something that is important to leverage our culture. So used words like “direct” or “authoritative”
especially now that we are trying to be a more progressive to describe the predominant management
and attractive employer, we’re trying to move from a style at their organization, terms like
culture of more top-down approach to a more collaborative “coaching” and “supportive” were used
approach in the more engaging leadership style.” more often to describe the most effective
management style. Most respondents
—Alejandro Campos understand that managers and leaders
Head of Talent Management and Organizational
using coaching skills are more effective for
Development, Continental Tire Worldwide
performance and engagement. Among the
hallmarks of a coach-like management style are a less directive form of
management, more employee empowerment, and a stronger focus on
growth and change.

FIGURE 9 What three words would you use to describe the predominant
management style at your organization? (Larger-sized words are more
frequently cited.)

Collaborative
Strict Autocratic
Direct Top Down

Hierarchical Participative
Efficient
Control

Organized Communication
Open

Democratic Coaching
Fair
Supportive
Strong

Authoritative
Innovative
Friendly

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 FIGURE 10 What three words would you use to describe the most effective
management style at your organization? (Larger-sized words are more
frequently cited.)

Collaborative
Direct

Supportive
Participatory

Teamwork
Fair Engaging Flexible
Empowering Honest Communicative

Coaching
Efficient Transparent Trust
Inclusive
Open
Effective Democratic Friendly

Generational Similarities and Differences in

Workplace Preferences
As the workforce ages and more Millennials enter management
positions, it is important to invest in their development to prepare them
for current and future leadership roles. Respondents from a variety of
seniority levels and age groups report that developmental opportunities
and flexible work arrangements are the most appealing benefits
and workplace characteristics (Table 3). We also found that male
respondents appear to be looking for feedback and recognition more
so than female respondents, while female respondents find flexible
work arrangements attractive.

Much has been written and said about the differences in working styles
and values between older and younger generations. As part of this
research project, we wanted to uncover the differences that exist and
the implications on strong coaching cultures. However, for the most part,
we discovered more similarities than differences among the generations.

The most appealing organizational characteristics reveal more about

the individual’s stage of life than implicit differences in personality or
attitudes. For example, Generation X and Baby Boomer employees
place a high priority on work flexibility. Members of this “sandwich”
generation with responsibilities for children and aging parents want

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 to control when, where and how they work. Millennials strongly
prefer developmental and advancement opportunities as they grow
in their career. There are no meaningful differences for feedback
and recognition (commonly considered strong needs for Millennials)
among the age segments in this study. In sum, employers should
focus on developing their employees and creating opportunities for
advancement while allowing flexible work, as these would have the
greatest impact on individuals of all ages.

TABLE 3 Which of the following organizational characteristics/activities most

appeal to you? (Select your top three; displayed by generational
segment.)

Generation Young Core Mature Generation Baby

Z Millennials Millennials Millennials X Boomers
Born Born Born Born Born Born
1997-99 1993-96 1987-92 1982-86 1965-81 1946-64 Total
Developmental
35% 34% 41% 33% 50% 43% 39%
opportunities
Flexible work
28% 30% 32% 30% 65% 52% 39%
arrangements
Advancement
7% 31% 38% 32% 23% 19% 28%
opportunities
Better benefits than
37% 28% 27% 20% 19% 19% 24%
competing organizations
Continuous feedback
28% 29% 25% 20% 22% 16% 24%
from manager
Recognition for
20% 24% 22% 27% 14% 27% 23%
performance
Collaboration among
22% 14% 20% 20% 24% 37% 22%
team members
Higher starting salary than
35% 19% 31% 22% 12% 11% 21%
competing organizations
Managers use
13% 12% 17% 18% 26% 27% 19%
coaching skills
Commitment to mission,
4% 14% 4% 16% 23% 23% 15%
values, and vision
Diversity and inclusion
15% 12% 9% 14% 7% 8% 11%
efforts

Employer branding 11% 18% 11% 8% 6% 2% 10%

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“Who does not want to Generational Similarities and Differences in Values
be acknowledged, Along with workplace preferences, we wanted to understand the
listened to, and similarities and differences in values across the generational segments.
appreciated in the Values for career advancement and recognition (My productivity should
workplace? Millennials may be measured by the quality of my output and not by my hours on the
job; It is essential that my manager supports my career development;
be more vocal about this
and I expect opportunities to share ideas and feedback with key
desire for acknowledgement
decision-makers) are the top values endorsed by all age groups at a
and wanting feedback, but
proportion of 67% or more (Table 4).
I think it’s actually cross-
generational.” Overall, younger employees endorse a wider range of values, making
them less polarized and more accommodating to different ways of
—Paula Buck being. Older employees have more family needs, such as childcare and
Operations Manager,
eldercare, and are more established in their career choices; thus, the
Beyond Emancipation (B:E)
range of endorsement for values is narrower.

Our results revealed that some of the stereotypes associated with

specific generations may be inaccurate. Corporate social responsibility
values do not vary widely across generations. Also, narcissistic
tendencies do not tend to be different among the various age
segments. Finally, we learned that less than 28% of all employees
indicated that they desired a short-term tenure in their organization (i.e.,
are job hoppers).

The results of this section highlight the need to pay more attention
to similarities rather than differences among the generations in your
workforce. In sum, employees are looking to grow and learn in their
careers. As Baby Boomers retire and Millennials become first-time
people managers and future leaders, employers need to focus on their
development, particularly through coaching.

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 TABLE 4 Percentage of agreement for the following values by generational
segment.

Generation Young Core Mature Generation Baby

Z Millennials Millennials Millennials X Boomers
Born Born Born Born Born Born
1997-99 1993-96 1987-92 1982-86 1965-81 1946-64 Total
Social and Community Values
I prefer social technologies to be
embedded throughout the workday so 61% 61% 61% 57% 50% 46% 56%
I can connect with others digitally.
I enjoy team projects at work. 72% 76% 70% 71% 81% 89% 76%
It is important to have a strong community
70% 86% 79% 79% 83% 79% 81%
with my work colleagues.
I desire to work at an organization
with strong commitments to philanthropy 50% 51% 63% 60% 66% 63% 59%
and/or volunteerism.
Separation of Work and Life Values
I prefer a shorter-term tenure at organizations. 30% 38% 32% 35% 12% 13% 28%
A good job is one with lots of
44% 45% 49% 47% 23% 25% 40%
opportunities to travel.
I have a higher commitment toward personal
44% 53% 49% 57% 37% 26% 46%
life/experiences than toward work.
Career Advancement Values
I am open to taking risks in order
65% 64% 69% 68% 75% 73% 69%
to advance my career.
The path to leadership in my organization
54% 68% 76% 78% 88% 92% 77%
should be transparent.
It is essential that my manager supports
74% 75% 85% 78% 90% 82% 81%
my career development.
I expect opportunities to share ideas and
76% 75% 84% 78% 95% 94% 83%
feedback with key decision-makers.
Need for Recognition Values
I expect to be promoted quickly
61% 60% 67% 59% 27% 30% 52%
when I perform well.
My manager should provide me with frequent
70% 73% 76% 78% 90% 76% 78%
feedback about my performance.
My productivity should be measured
by the quality of my output and not 67% 76% 87% 82% 96% 94% 84%
by my hours on the job.
I expect to be recognized by
50% 74% 66% 76% 73% 63% 70%
others for a job well done.
Organizational Fit Values
Having flexible work arrangements is more
54% 64% 43% 57% 60% 43% 55%
important than my compensation.
I prefer to work with people who
72% 68% 58% 65% 39% 27% 56%
respect positions of authority.
My company’s values should align
54% 65% 68% 75% 88% 94% 75%
with my personal values.
Narcissism
I am an important person
57% 68% 66% 69% 78% 70% 69%
inside my organization.
Nobody can do my job better than I can. 46% 41% 42% 45% 23% 18% 36%

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 DEVELOPING YOUR MILLENNIAL, FIRST-TIME
PEOPLE MANAGERS
As Millennials are poised to become the majority demographic in the
workforce and assume leadership roles, it is wise for employers to pay
more attention to their development. Our research found that individual
contributors become first-time people managers between the ages of 31
and 35. They are relatively new to their roles; more than half of Millennial
respondents in management/leadership roles have been in that role for five
years or less. Flexible work arrangements, developmental opportunities
and recognition opportunities are the top ways organizations are attracting,
developing and retaining employees aged 21 to 35 (Figure 11).

FIGURE 11 Which of the following is your organization currently doing to attract,

develop, and retain employees ages 21 to 35? (Select all that apply.)
Enhancing the organizational
commitment to mission, values, 34%
and vision
Having better benefits (e.g.,
33%
insurance, retirement, vacation, etc.)
Increasing resources toward
24%
employer branding efforts
Having higher starting salaries than
23%
our competitors

Offering more developmental

42%
opportunities
Having continuous feedback from
35%
managers to their team members
Having managers use coaching
32%
skills with their team members

Offering flexibility in when, where,

43%
and how work gets done
Increasing recognition for
39%
performance
Increasing collaboration among
35%
team members
Increasing resources toward
31%
diversity and inclusion efforts
Offering more advancement
30%
opportunities

Attract Develop Retain

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 Competencies of First-time People Managers
Survey respondents were asked to indicate the three most valuable
skill and competencies for first-time people managers. Coaching and
developing others (44%), engaging and inspiring (41%), and having
emotional intelligence (35%) are the most valuable skills and competencies
for first-time people managers according to respondents (Table 5).
Younger employees tended to see their coaching and development
opportunities coming from outside of their managers as they were less
likely to endorse this competency compared to older generations.

TABLE 5 What do you consider to be the top three most valuable skills/
competencies for first-time people managers to have? (Select your top
three responses?)

Generation Young Core Mature Generation Baby

Z Millennials Millennials Millennials X Boomers
Born Born Born Born Born Born
1997-99 1993-96 1987-92 1982-86 1965-81 1946-64 Total
Coaching and
developing other 41% 33% 43% 29% 68% 57% 44%
employees

Engaging and inspiring

46% 35% 40% 43% 44% 45% 41%
other employees

Having strong
22% 26% 33% 31% 50% 51% 35%
emotional intelligence

Managing and
successfully 26% 37% 31% 35% 33% 37% 34%
introducing change

Helping team members

35% 31% 30% 36% 25% 30% 31%
accomplish their work

Having comprehensive
knowledge of the 33% 34% 30% 34% 17% 19% 29%
business

Identifying and
22% 35% 29% 29% 16% 16% 26%
developing future talent

Dealing with ambiguity

26% 18% 20% 15% 37% 29% 23%
and uncertainty

Continuing to perform
13% 23% 20% 19% 11% 17% 18%
tasks and projects

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 22

Across the age segments, there is a consistent view that first-time
managers should be focused on people rather than tasks. This mindset
shift is important while making the transition from individual contributor
to manager as explained by Nick Halder, Global Head of Learning and

“
Development at Fidessa:

I think the most valuable skill in a first-time manager is making

that transition from an individual contributor to someone who
can effectively organize and manage individual contributors.
People will make the move into a manager role, but will still
cling to the things that they are comfortable with and can do
really well. An open mindset and ability to see that what the
organization needs from you in a management role is different
from what it needed from you as a contributor is really crucial.”

First-time People Manager Development

Face time with senior leaders (52%), e-learning (45%) and classroom
training (40%) are the most frequent developmental methods offered to
first-time people managers (Figure 12). Coaching and developing others
was the top-rated competency for first-time people managers (Table 5),
yet only 36% of respondents’ organizations offer training to use coaching
skills. Furthermore, only 20% offer first-time people managers access to
a professional coach practitioner. However, exposure to senior leaders
who use coaching skills with them is an opportunity for development, as

“
illustrated by the following quote from our interviews:

For first-time managers, it’s about allowing them the opportunity

with their supervisor—which is a director on our staff—to ask
questions and to have those weekly meetings where they have
space to vent. They have space to think of creative solutions
to typical problems experienced in management. We ask
our managers to be curious and determine, ‘What’s going on
behind that?’ It’s not always a performance issue. If we step
outside and see that bigger picture, it allows all of our staff to
flourish and develop and really engage with their manager in a
way that will be sustainable.”
—Paula Buck
Operations Manager, Beyond Emancipation (B:E)

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 23

 FIGURE 12 What opportunities are available for first-time people managers at
your organization? (Select all that apply.)

Exposure to senior leaders

52%
(e.g., meetings, face time)

Web-based training or e-learning 45%

Formal classroom training 40%

Training on how to use coaching

36%
skills with your team

Assessments 35%

Action learning projects 32%

Peer networking at events

28%
or conferences

Stretch assignments 27%

Formal mentoring program 25%

Tuition remission 23%

Job rotations 22%

Access to a professional
20%
coach practitioner

Expatriate assignments 11%

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 24

 However, the higher the percentage of Millennials (and younger
leaders) working inside the organization, the more likely the employer
is to provide access to a professional coach practitioner (Figure 13). The
following sections describe how coaching is used for managers’ and
leaders’ development and how managers and leaders can be trained in
coaching skills to build a strong coaching culture.

FIGURE 13 Has your current organization provided you with access to a

professional coach practitioner? (By percent Millennial workforce.)

75% or more Millennials 21% 35% 18% 26%

Less than 75% to 60% Millennials 19% 28% 28% 26%

Less than 60% to 40% Millennials 12% 32% 20% 37%

Less than 40% Millennials 11% 13% 14% 61%

Yes, both an internal and external coach practitioner

Yes, an internal coach practitioner

Yes, an external coach practitioner

No, none have been provided

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 25

 Coaching for Leadership Development
For over one-third of respondents who were partnered with a
professional coach practitioner, this coaching engagement resulted
from an assignment as they joined the organization or entered a new
role (Figure 14). Among the top goals for coaching engagements were
optimized work performance, increased productivity, and improved
communication skills (Figure 15).

FIGURE 14 What were the circumstances that led you to partner with a
professional coach practitioner? (Select all that apply.)

A coach was assigned to me as I

37%
entered the organization.

My employer gave me access to a

coach when I entered my current 34%
role.

I was in a formal leadership

26%
development program.

I asked my employer if I could

23%
receive coaching.

I sought out a professional

coach practitioner for my own 16%
professional development.

It was an outcome of my
performance review to address my 11%
future career roles/aspirations.

It was an outcome of my
performance review in order to 9%
address my current performance.

“Coaching really helps first-time supervisors. Many

feel like they don’t want to be too directive or bossy. But,
knowing when they need to be more directive, and when to
be less directive, and how to do each, is important.”
—Nick Halder
Global Head of Learning and Development, Fidessa

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 26

 FIGURE 15 What were the top three goals of your most recent coaching
engagement? (Select the top three goals.)

Optimize work performance 39%

Increase productivity 33%

Improve communication skills 31%

Expand professional career

29%
opportunities

Improve business management

strategies 29%

Improve work/life balance 28%

Increase self-esteem/self-
26%
confidence

Increase well-being 21%

Accelerate onboarding into a new

21%
professional role

Most of the individuals reported positive changes for each of the

coaching goals selected. These changes were more pronounced for
organizations with a strong coaching culture (Figure 16). The evidence
clearly shows that coaching works, and its efficacy is heightened among
employees who work in organizations with strong coaching cultures.

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 27

 FIGURE 16 Reported changes in individuals’ goals for coaching by strong
coaching culture. (SCC = strong coaching culture)

SCC 97% 3%1%

Optimize work
performance
All others 83% 12% 5%

SCC 93% 5% 3%
Increase productivity
All others 78% 19% 3%

Improve business SCC 92% 6% 2%

management
strategies All others 77% 18% 6%

SCC 92% 6% 2%
Improve
communication skills
All others 83% 14% 4%

SCC 91% 7% 2%
Expand professional
career opportunities
All others 73% 24% 3%

SCC 91% 7% 2%
Increase well-being
All others 79% 16% 5%

Accelerate SCC 86% 12% 2%

onboarding into a new
professional role All others 66% 28% 6%

SCC 85% 13% 3%

Increase self-esteem/
self-confidence
All others 69% 25% 6%

SCC 81% 16% 3%

Improve work/life
balance
All others 63% 30% 7%

Much/somewhat better No change Much/somewhat worse

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 28

“The main challenge for Training Leaders to Use Coaching Skills
managers in coaching
Among the organizations that participated in the research, more than
conversations is how
one-third (36%) indicated that they offer coach-specific training to new
toshift from the managers (Figure 12). Leveraging coaching to reach leadership goals
driver’s seat to the has an impact on work performance and goal-attainment. For managers

co-pilot seat. The and leaders, being trained to use coaching skills with their teams also
has an effect on their performance.
manager wants to be the
expert and the one directing
things and saying, ‘this is
what you have to do.’ This
transformation is the one that
managers usually struggle
with the most.”
—Alejandro Campos
Head of Talent Management
and Organizational
Development, Continental
Tire Worldwide

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 29

CONCLUSIONS AND RECOMMENDATIONS
Access to coaching is a developmental opportunity for many executives
and high-potential employees. The reach of this opportunity can extend
to all employees when organizations invest in coaching by increasing
the availability of internal and external coach practitioners, providing
managers and leaders with coaching skills training, and offering
continuing professional development opportunities for managers and
leaders to sharpen those skills. Each of these three modalities are an
integral part of strong coaching cultures, which are appearing more
prevalent in our ongoing research series.

As the workforce ages and Millennials assume first-time people

manager roles and eventually executive leadership positions,
organizations need to ensure they are fully competent and ready to
excel. Partnering with a professional coach practitioner and receiving
training to use coaching skills are both effective for the ongoing
development of managers and leaders. Based on the results of this
research, we offer the following recommendations:

Understand a multi-generational workforce to address their

development.

Observe that it may not be attitudes or personalities that

contribute to differences in values and working styles across
generations, but specific needs at certain life stages.
Focus on developing employees and creating opportunities for
advancement while providing flexible working arrangements, as
these needs transcend all age groups.

Make professional coach practitioners available to managers and

leaders.

Use professional internal or external coach practitioners to

support managers and leaders in unlocking their potential and
achieving their goals.
If the supervisors of first-time people managers have received
appropriate coaching skills training, encourage them to apply
these skills.
Build awareness around any resistance or challenge that exists in the
transition from an individual contributor to a first-time people manager.

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 30

Train managers and leaders to use coaching skills.

Offer managers/leaders additional opportunities to receive

accredited coach-specific training.
Provide managers/leaders access to professional internal or
external coach practitioners to deepen their coaching skills.
Provide managers/leaders using coaching skills examples,
toolkits, videos, etc. on the coaching core competencies.
Recognize that managers can apply coaching skills in the
moment, or during more formal conversations—such as
scheduled development conversations.
Understand that when managers/leaders use coaching skills, they
are present and focused on the conversation; actively listen to
words, body language, and tone; and ask questions to move the
team member toward his or her goals.

Build a coaching culture for engagement and performance.

Make coaching available to individuals of all ages and experience

levels.
Use a combination of modalities based upon the unique needs of
the organization and the strategic goals.
Incorporate coaching skills into job descriptions for managers and
leaders, and encourage managers and leaders who are willing to
use coaching skills and see the value of development.

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 31

 APPENDICES

Endnotes 1. Fry, R. (2015). Millennials surpass Gen Xers as the largest generation
in the U.S. labor force. FactTank: News in the numbers, Pew
Research Center. Retrieved from http://www.pewresearch.org/fact-
tank/2015/05/11/millennials-surpass-gen-xers-as-the-largest-generation-
in-u-s-labor-force/.

2. P
 wC. (2011). Millennials at Work: Reshaping the Workplace. Retrieved
from https://www.pwc.com/m1/en/services/consulting/documents/
millennials-at-work.pdf.

3. The Hartford (2015). Millennial Leadership Survey. Retrieved from

https://www.thehartford.com/resources/gb/millennial-research.

4. Baird, C.H. (2015). Myths, Exaggerations and Uncomfortable Truths:

The Real Story behind Millennials in the Workplace. Retrieved
from https://www-935.ibm.com/services/us/gbs/thoughtleadership/
millennialworkplace/.

5. Ray, R., Sinar, E., Wellins, R.S., Wright, E., Popiela, A., Ye, A., & Paese, M.
(2016). Divergent Views/Common Ground: The Leadership Perspectives
of C-suite Executives and Millennial Leaders. Retrieved from http://
pages.conference-board.org/rs/225-WBZ-025/images/Executive%20
Summary%20--%20Divergent%20Views%20Common%20Ground_
edited-v2.pdf.

6. The Hartford (2015). Millennial Leadership Survey. https://www.

thehartford.com/resources/gb/millennial-research.

7. Willyerd, K. (2015). Millennials Want to Be Coached at Work. Harvard

Business Review. Retrieved from https://hbr.org/2015/02/millennials-
want-to-be-coached-at-work.

8. Gallup Inc. (2016). How Millennials Want to Work and Live. Retrieved
from http://www.gallup.com/reports/189830/millennials-work-live.aspx

9. 
Hamlin, R. G., Ellinger, A. D., & Beattie, R. S. (2006). Coaching at the
heart of managerial effectiveness: A cross-cultural study of managerial
behaviours. Human Resource Development International, 9(3), 305-331.

10. Filipkowski, J., Heverin, A., & Ruth, M. (2016). Building a Coaching
Culture with Managers and Leaders. Retrieved from http://www.hci.org/
hr-research/building-coaching-culture-managers-and-leaders.

11. Grant, A. M. (2010). It takes time: A stages of change perspective

on the adoption of workplace coaching skills. Journal of Change
Management, 10(1), 61-77.

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 32

About the Research This research report was developed in partnership between the
Human Capital Institute (HCI) and International Coach Federation (ICF).
Between May 22 and June 13, 2017, a survey was distributed via email
to HCI members who opted into the HCI Survey Panel and the Learning
and Development Community and to professional coach practitioners
and HR and L&D contacts on ICF’s mailing list. In addition, participation
in the survey was promoted on HCI and ICF’s social media channels.

In addition to survey invitations delivered by HCI and ICF, we utilized

an online panel provider (Qualtrics) to supplement international
participation and access to managers and individual contributors
in our targeted age bands. This third-party survey panel provider
distributed the survey to employed individuals in targeted age brackets
around the world and obtained 430 usable questionnaires. After
removing duplicate entries, flagged careless respondents, external
coaches, and those who are not an internal coach, manager, leader,
employed individual contributor, or a professional in L&D, HR, or talent
management, we analyzed 670 completed questionnaires.

The questionnaire for this research report was divided into three
sections.

The first section determined what subsequent questions the

respondent would receive in the questionnaire. If the respondent
indicated that he or she was an external coach practitioner (n = 78),
it was explained that the survey was geared toward those in HR,
talent management, and L&D roles. He or she was asked to share the
questionnaire with the appropriate contact and received no further
questions. For those who indicated that they are an internal coach
practitioner; an individual contributor; a manager or leader; a manager
or leader who uses coaching skills; an HR, talent management, or L&D
professional; or an HR, talent management, or L&D professional who
uses coaching skills, he or she was guided to the second section. If the
respondent selected that none of the above applied (n = 30), he or she
was directed out of the questionnaire.

The second section contained questions on individual and

organizational demographic, work preferences, professional values,
and available developmental opportunities for first-time people leaders.

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 33

Internal coach practitioners did not receive the questions in the third
and fourth sections. The third section included questions about access
to a professional coach practitioner including reasons for partnering
with a professional coach, goals for coaching, and impacts of coaching.
It also included questions on access to coach-specific training. If no
professional coach practitioners were provided to the respondent he or
she skipped to the fourth section.

The fourth section asked questions about coaching within the

respondents’ organizations with regard to: the coaching modalities
used and for whom, frequency of coaching, budget, and training
sources. If the question was specific to a type of modality, the
respondent only received it if he or she indicated that the modality was
present in his or her organization.

As part of this project, researchers conducted in-depth interviews with

experts on the topic, including:

Paula Buck, Operations Manager, Beyond Emancipation (B:E)

Alejandro Campos, Head of Talent Management and

Organizational Development, Continental Tire Worldwide

Nick Halder, Global Head of Learning & Development, Fidessa

Alison Hooker, Americas Chief Talent Development Officer, EY

(retired)

To supplement these methods, researchers reviewed relevant

information from a variety of secondary sources, including academic
journal articles, white papers, articles, books, blogs, and case studies.
The results of this questionnaire, subject-matter expert interviews, and
secondary sources form the basis of this research.

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 34

Survey Respondent Global Region
Demographics North America 55%
Europe 19%
Middle East and Africa 10%
Asia 9%
Oceania 7%
Latin America 1%

Size of Organization (Number of Employees)

Under 100 15%
> 100 and ≤ 1,000 31%
> 1,000 and ≤ 5,000 21%
> 5,000 and ≤ 10,000 13%
> 10,000 and ≤ 50,000 10%
> 50,000 11%

Industry
Business/Professional Services 11%
IT Hardware/Software 10%
Financial Services/Real Estate/Insurance 10%
Manufacturing 9%
Health Care 7%
Construction 7%
Education 6%
Government 6%
Retail 6%
Non-profit 4%
Chemicals/Energy/Utilities 4%
Food & Beverage/Consumer Goods 4%
Transportation/Warehousing 4%
Bio/Pharmaceuticals/Life Sciences 3%
Media & Entertainment 2%
Higher Education 2%
Telecommunications 2%
Aerospace & Defense 1%
Travel 1%

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 35

Survey Respondent Types
Managers/Leaders (Traditional) 19%
Managers/Leaders (Using Coaching Skills) 20%
HR/Talent Management/Learning & Development (Traditional) 9%
HR/Talent Management/Learning & Development
25%
(Using Coaching Skills)
Internal Coach Practitioner 11%
Individual Contributor 16%

Seniority
C-level 6%
VP-level 4%
Director-level 19%
Manager-level 41%
Individual contributor 30%

Generational Segment
Generation Z: Born 1997-99 7%
Young Millennials: Born 1993-96 24%
Core Millennials: Born 1987-92 17%
Mature Millennials: Born 1982-86 22%
Generation X: Born 1965-81 17%
Baby Boomers: Born 1946-64 13%

Gender
Male 38%
Female 62%

Note. n = 670.

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 36

 About the
Research Partners

Formed in 1995, the International Coach Federation (ICF) is the

world’s largest organization of professional trained coaches, with
more than 27,000 members in more than 135 countries worldwide.
ICF is dedicated to advancing the coaching profession by setting high
ethical standards, providing independent certification, and building
a worldwide network of credentialed coaches. Coaching is a distinct
service and differs greatly from therapy, consulting, mentoring, or
training. ICF defines coaching as partnering with clients in a thought-
provoking and creative process that inspires them to maximize their
personal and professional potential. For more information, please visit
our website at www.coachfederation.org.

We believe that strategic talent management is the only long-

term, sustainable competitive advantage left today, and that most
organizations around the world are struggling in this critical area. At our
best, we change both paradigms and practices, and enable executives
to make better, faster decisions than they could on their own.

HCI seeks to educate, empower, and validate strategic talent

management professionals to impact business results through the
acquisition of insights, skills and tools that are contextualized through
research, practice, expert guidance, peer learning, and self-discovery.
Visit HCI.org to learn more.

SIGNATURE SERIES | BUILDING A COACHING CULTURE WITH MILLENNIAL LEADERS | 37

 Publication date: September 18, 2017

Authors:
Jenna Filipkowski, PhD ([email protected])
Mark Ruth ([email protected]),
Abby Heverin ([email protected])

1130 Main Street | Cincinnati, OH 45202

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