How Can Career Coaching Boost Employee Engagement?

The Current Jobs Market and Impact on Employee Engagement 

 

It’s no secret that the UK jobs market has become increasingly unstable in recent months.

With higher employer costs, an unstable economy, redundancies and hiring freezes, the morale and productivity of workers are facing significant challenges. 

The UK has experienced 28 consecutive months of declining permanent placements as of January 2025, the longest downturn since 2020 (CIPD).   Equally, 23% of UK workers plan to quit their jobs this year, a 3% increase from 2024. (Culture Amp)

This suggests that increasing numbers of employees in the UK want to leave, but will stay put because of the uncertainty/lack of opportunities. So the challenge for businesses is this:

How can you retain talent AND reignite passion within your team? 

This also presents a valuable window of opportunity, and the answer may lie in career coaching… Career coaching boosts engagement by helping your people to align their goals with their work, regaining control over their careers.

In this blog, we’ll explore how career coaching can improve your employee engagement and benefit your organisation. 

 

What is Career Coaching? 

 

Career coaching is a structured and supportive process in which a coach works 1-2-1 with an individual to help them clarify their career goals, identify their preferences and competencies and chart a path to success.  

Chiumento has provided career transition coaching through our outplacement services for over 30 years, but career coaching is not exclusive to leavers.  

In fact, it can also help employees grow in their current roles or plan for future opportunities within your organisation.  Career coaching focusses on various aspects of professional development, such as: 

• Goal Setting: Helping employees identify their career aspirations and break them down into actionable steps. 

• Self-Discovery: Helping employees better understand their strengths, preferences and values to find greater alignment with their work. 

• The Price to Stay vs. The Cost of Change: Helping employees understand the commitment required to achieve their career goals. 

• Competency Gaps: Helping employees understand where and how they can develop competencies to support their career growth. 

• Action Plan: Assisting employees in creating a realistic and achievable plan for career success.
  

By giving employees the support and resources they need, career coaching can reignite their passion for their roles and help them feel more connected to their work. 

 

How Career Coaching Drives Employee Engagement 

 

Career coaching can have a profound impact on employee engagement. Here’s how: 

 

Career Coaching Personalises Growth

 

Career coaching helps your employees understand where they are in their professional journey and where they want to go. By working with a coach to set specific, measurable goals, employees gain clarity and a sense of purpose.

This personalised development fosters intrinsic motivation and engagement in their daily work. 

 

Career Coaching Aligns Roles and Goals

 

One of the key benefits of career coaching is its ability to align employees’ personal goals with organisational objectives.

By helping your employees see how their work contributes to the company’s success and their own growth, coaching creates a stronger sense of purpose. Employees who feel that their work is meaningful are more likely to be engaged and committed to the organisation’s long game.

This is something Ian Gooden, our Executive Chairman, talks about extensively in our blog, “Streamlining Career Coaching: Occam’s Razor for HR Success“. 

 

Career Coaching Increases Confidence and Clarity

 

Many employees feel uncertain about their future career path, which can contribute to disengagement.

Career coaching provides clarity and actionable advice, empowering your employees to make informed decisions about their professional development.

This increased confidence often results in higher engagement, as employees feel more secure in their roles and more motivated to excel. 

 

Key Benefits of Career Coaching for Employee Engagement 

 

Career coaching isn’t just about personal development; it also offers significant benefits to the organisation as a whole: 

 

Reduced Turnover 

 

Companies with high employee engagement experience up to 24% lower turnover rates, according to a Dale Carnegie survey. Engaged employees feel more connected to their workplace, making them less likely to seek employment elsewhere.  

Career coaching can help employees gain clarity on their strengths and aspirations, and where possible, identify opportunities for growth within the organisation.  

Even when internal mobility isn’t immediately available, coaching supports individuals in building skills and confidence, which can boost engagement and retention. 

 

Stronger Organisational Loyalty 

 

When employees feel supported in their career development, they develop a stronger sense of loyalty to the organisation.  

Career coaching fosters an environment of trust, where employees believe the company is invested in their long-term success, leading to greater commitment and satisfaction. 

 

Increased Job Satisfaction 

 

Coaching allows employees to identify what they truly want from their work, which often leads to greater job satisfaction.  

When employees are aligned with their passions and strengths, they are more likely to enjoy their roles, resulting in a more engaged and motivated workforce. 

 

Conclusion 

 

In an uncertain job market, employee engagement is more important than ever. By investing in career coaching, companies can cultivate a more engaged, loyal, and productive workforce—one that is ready to thrive, even in times of uncertainty. 

Stay tuned for an exciting new service we’re launching soon, designed to equip your team with the tools to boost engagement and elevate their careers!