Executive coaching is vital in the development of an executive. It impacts executives with the knowledge needed to effectively lead the organization they work in.
Executive coaching will greatly help you as a leader to enhance your leadership skills. But just how much does this cost? Costs vary considerably due to the variance of the packages on offer.
Expect anywhere from $10,000 – $30,000 for an executive coaching engagement of six to twelve months. You can expect to be charged from $300 to over $1000 for a coaching session of one hour.
The price of executive coaching services ranges, as the services are not subject to standardization.
What Is Executive Coaching?
Executive coaching is often considered to be part of a leadership training program designed to help all levels of leaders develop their skills and maximize their potential.
It entails a close and personal relationship between an executive and an executive coach.
Executive coaching aims to advance the leaders capabilities so that they can effectively accelerate the performance of the organization they work in.
It is beneficial to both executives and the organizations they lead. A typical executive coaching session with free coaching tools runs for an60 to 90 minutes.
Types of Executive Coaching
- Individual coaching: it involves a one-on-one coaching session between an executive and the executive coach.
- Team coaching: it involves the coaching of two or more individuals in the organization that are working in the same team.
- Group coaching: it involves the coaching of two or more individuals (not always within the same organization) coming together for co-creation on specific topics.
Who Is an Executive Coach?
An executive coach is a professionally qualified person who specializes in helping individuals, teams and organizations with management roles develop their leadership skills and optimize their performance.
Who Needs Executive Coaching?
Executive coaching is designed for anyone with a leadership role in an organization.
It is designed to help executives talent, senior leaders, and C-suite executives (such as CEOs, COOs, CTOs, and CFOs) explore a wide variety of challenges looking to move towards co-created solutions. Human Resources professionals can also benefit from executive coaching.
Executive coaching is no longer limited to operations based executives as many companies now invest in executive coaching for employees at all levels.
What Determines the Price of Executive Coaching?
Some factors that determine the price of executing coaching are:
- The coaches experience level.
- The structure of the coaching package
- The method of coaching.
- The seniority of the client.
- Goals and objectives.
- Salary of the client.
- The period of engagement.
The experience level of the coach
The price of executive coaching is affected by the coach’s experience level.
A new coach or a coach in training would charge less than an experienced coach. The higher the coach’s experience level, the higher the price of a coaching session.
For an engagement period of six months, entry-level coaches charge between $10,000 – $20,000, average-level coaches charge between $25,000 – $35,000, and high-end coach can start from $50,000.
The structure of the coaching package
Many executive coaching services today offer tailored packages for individuals, teams and organizations which combine educational, developmental, facilitation, and coaching.
These may be short 10-week programs or run an entire 12-month period. The package price will vary depending on the coachee numbers, content delivered, and a host of other variables, but may start in price from $5000 for the short programs and move upwards from there.
The region or country can also affect the price of executive coaching. The price of executive coaching is usually higher in countries with high costs of living (such as the USA and the United Kingdom) and countries with fewer executive coaches.
In the UK, the minimum price for an executive coaching session of two hours is £500, and the median price is £1000.
Coaching sessions typically last for two hours with an engagement period of nine months in the UK. Coaches with little experience charge between £500 – £900 for a session, while coaches with high experience levels can charge above£1500 for a session.
A high-end coach can charge up to £2400 for a session. On average, you can expect to be charged between £10,000 to £20,000 for an executive coaching session of nine months in the UK.
If a country has a low cost of living, then the price of executive coaching would be lower, compared to countries withhigh costs of living. India and South Africa are countries with low costs of living.
In India, it costs between $4000 and $8000 for an executive coaching session of six months. And in South Africa, executive coaching costs between $1400 and $2500 per month.
Method of Coaching
Coaching sessions today are delivered equally online as they are in-person.
Some executive coaches also provide educational and developmental material to their clients.
This can affect the price of the executive coaching. The more resources a coach spends on reaching and supporting a client, the more a session is likely to cost.
Seniority of the client
The higher up a client is in an organization, the higher an executive coach would charge. This is because coaching clients at higher levels are more demanding.
So, when you move up the rank in your organization, you can expect your coach to increase the price of your coaching session. Alternatively, the experience level of the coach is often reflective of the client’s level and the price escalates accordingly.
Goals and objectives of the client
Clients have different goals and objectives. An executive coach can charge clients based on how demanding their goals and objectives are. This may also influence the session and program duration and frequency of each session
Salary of the client
There are executive coaches that base their charge on the client’s monthly salary. Some executive coaches charge their clients10% of their monthly salaries.
So, if you earn a monthly salary of $50,000 then your executive coach would charge you $5000 for a coaching session of one month. Others charge a flat fee.
One such famous example is Marshall Goldsmith who is reported to charge between $100,000 and $250,000 for a 12-month engagement.
Period of engagement
Executive coaching can run for a period of six months, nine months, one year, or two years.
Most executive coaching session runs for a period between six to twelvemonths. The longer the period of engagement, the higher the price.
Note that there may be other factors that affect the price of executive coaching.
Price of Executive Coaching in Some Cities
As stated above prices vary greatly dependant on multiple factors, so detailing prices is not an exact science. The following offers base level, entry pricing for junior executive coaching in several cities:
In Singapore, the price of executive coaching ranges fromS$350 – S$2000 per hour. The average price of a one-hour session is S$490. A 3-month engagement of6 sessions costs between S$3600 – S$10000.
In Hong Kong, an entry-level executive coach charges HK$272 per hour, and the charge scales upwards sharply from there with some senior-level executive coaches charging HK$5000 per hour.
In Shanghai, an entry-level executive coach charges¥247 per hour, however it is common to find coaching packages of seven, 90-minute sessions for senior-level executive run as high as ¥50000.
There is no specific amount that an executive coaching session should cost. The price of executive coaching ranges, based on different factors as mentioned earlier.
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