Jan 20, 2023
5 min read

6 Benefits of Managers as Coaches: How It Can Improve Your Team's Performance

In this article:

Managers as coaches play an essential role in a company. They help you achieve goals and objectives, but also take care of the employees. 

According to statistics, almost 60% of employees reported no workplace training, especially since the pandemic began. Ongoing personal and professional development is crucial for them. Managers can help them with that if they have coaching skills.

On top of that, research shows that good coaching and training increase productivity by 88%. It obviously has positive effects on your business. In today’s world, managers shouldn’t only give commands. They should give support and guidance as well.

In this article, we’ll reveal the benefits of having managers as coaches and how it impacts the team’s performance.

The role of managers as coaches

Most managers acquire various skills such as leadership, problem-solving and decision-making. They possess excellent knowledge that they can share with their employees. However, they should develop coaching skills to be able to teach others and help them grow.

Managers as coaches focus on individual team members to:

  • Encourage them to achieve goals
  • Help them develop as professionals
  • Build their strengths
  • Eliminate their weaknesses
  • Provide necessary answers and guidance
  • Listen to people’s needs in the workplace

According to research, both companies and individuals emphasize that coaching is profoundly beneficial. Most of them would repeat the process to produce high-performing teams.

What are the benefits of managers as coaches? Let’s find out.

Related: 30, 60, 90 Day Plan: A Simple Guide to Help You Reach Your Goals

6 Benefits of managers as coaches

Everyone wins when managers become coaches – the company, employees and managers themselves. Here are the main benefits of coaching:

  • Increases employee retention – a team member leaves when they don’t have growth opportunities. If a company has an effective coach, they are more likely to stay. The coach sees their potential and can help them achieve it.
  • Improves a team’s performance – great coaches transform their teams. They encourage every individual to grow and learn. Over time, the employees improve at their jobs and the team produces better results.
  • Broadens a manager’s skills – managers develop and acquire specific skill sets that turn them into good coaches. They learn how to communicate better, provide feedback and manage teams. Although they can learn these skills independently, coaching speeds up the process and exposes them to different situations.
  • Heightens self-awareness – a recent study revealed that coaching heightens self-awareness. It is a critical skill to have for personal and professional development. A team member knows what they want when they are self-aware.
  • Develops team members’ skills – Gartner HR research revealed that almost 60% of the workforce need new skills to do their jobs. Most managers overlook this issue, but a great coach won’t. The coach analyzes every team member and concludes which skill sets they need to perform better.
  • Boosts employee engagement – coaching allows an employee to participate in their growth and role actively. They have coaching conversations to figure out their future. All of this increases employee engagement.

Related: Employee Professional Development Plan Template and How to Make It

How does coaching impact a team's performance?

managers as coaches

Image source: Unsplash

Managers as coaches have a profound impact on a team’s performance. They are the glue that holds everyone together. High-performing teams need a great coach to:

  • Boost morale – coaches devote time to each team member. They develop a plan to ensure that members meet their goals. The attention makes employees feel valued which boosts morale on a team level.
  • Facilitate communication – many managers as coaches speak daily to their direct reports. They hold a coaching conversation to understand which areas need improvement. Having open communication helps the team achieve goals.
  • Improve teamwork – the best managers get to know each team member and their strengths and weaknesses. They may pair people with different skill sets to help them grow together. It brings the team closer and encourages employees to support each other with work-related tasks.
  • Increase motivation – providing guidance isn’t the coach’s only responsibility. They must also provide positive reinforcement to motivate employees. For instance, an employee might get a growth opportunity if they acquire a new skill or reach their target.

Coaches build better teams through active listening, collaboration, mutual trust and transparency. Let’s find out what you need to get started with coaching.

AI for Performance Review.

Get the insights you need in one click.
Try AI now, It's free

How to get started with coaching?

Good coaching in the workplace improves company culture, retention, productivity and satisfaction. However, you must possess some skills to influence the team and individual performance. Let’s see.

Be trustworthy

There should be trust between you and the employees. That’s how they feel safe and willing to share their thoughts and opinions.

Acquire good listening skills

A good coach has active listening skills to hear and understand their employees. Your job is not only to listen to people, but to act on what they tell you as well. It makes employees comfortable when addressing issues.

Know how to provide feedback

Your feedback must be clear and actionable. Set clear expectations so that employees don’t leave the meeting confused. We suggest you convey your feedback in a way that motivates and encourages team members.

Related: 5 Tips for Giving Feedback at Work (+ Employee Feedback Examples)

Be realistic

The best-case scenario is that team members achieve goals every few weeks. However, that doesn’t happen often. A good coach listens to different perspectives and establishes realistic goals.

Show empathy

Empathy should be another of your coaching skills. You must understand your team members and learn what their hardships are. Sit down with your employees often and check if they need any help.

It might seem difficult to achieve the above. However, the more you coach others, the better you become over time. As they say, practice makes perfect.


Employees are getting tired of the command and control style. They want to thrive in the workplace instead. Having managers as coaches helps them meet goals, learn new skills, expand their knowledge and become better professionals.

Show team members that you care by introducing coaching. Let them see that the company wants to invest in their development. They will pay you back with hard work and loyalty.

FAQ: Manager as Coach in 2023

Why should managers be able to coach?

Managers should coach if they want to improve skills like active listening and develop professionally. The opportunity also allows them to get to know their employees and the company better.

What makes a good manager coach?

A good coach possesses a range of coaching skills. This includes empathy, active listening, trustworthiness and the ability to provide actionable feedback.

Is a manager like a coach?

There is a slight difference. A manager is a person who organizes the work and processes. A coach, however, wants to drive team performance and achieve goals.

What’s Effy software?
Performance review
Easily launch review cycles in your way, track progress.
360 degree feedback
Collect feedback from peers and managers. Identify strength and improvements areas.
Choose templates that are right for you. Start review process in 15 min.
Collaborate effectively with team meeting agenda, action items and meeting notes
Personal development plan
Develop your people by providing them an explicit plan to the next level. Track goals progression.
AI generated insights & Analytics
AI will generate an extended summary for every employee, including top strength, areas to improve and action plan.
Apr 16, 2024
5 min read
15 Work-related Strengths Examples + Tips for Improving Them
Read More
Apr 6, 2024
6 min read
How to Improve Employee Engagement: 9 Actionable Tips
Read More
March 26, 2024
4 min read
Employee Evaluation Form: What to Include + Template
Read More
Set up your first
Performance Review with Effy
Use effy for free
Use this template for free