Why every manager needs coaching skills – insights from Deloitte’s 2025 Global Human Capital Trends report

The workplace is evolving at an unprecedented pace, and managers are facing increasing complexity in their roles. According to Deloitte’s 2025 Global Human Capital Trends report, leadership is shifting from a command-and-control approach to one that prioritises adaptability, collaboration and continuous development. The report highlights a growing need for managers to act as coaches, fostering resilience, engagement and high performance within their teams. But why is this shift so critical and how can coaching skills help?

The rise of the coaching manager

Deloitte’s findings reinforce what many in the coaching profession have long understood: organisations thrive when managers move beyond simply directing work and instead empower their teams. The report outlines how traditional management approaches, focused on rigid structures and top-down decision-making, are becoming obsolete in the face of rapid technological change and evolving employee expectations.

Today’s workforce seeks meaningful work, psychological safety and opportunities for growth. A coaching-led management style helps meet these needs by encouraging open dialogue, fostering problem-solving skills and developing employees' capacity to navigate challenges independently.

Karen Smart, head of consultancy at the AoEC, explains: "Coaching skills are an essential part of modern leadership. They provide managers with the ability to support and challenge their teams in a way that drives real engagement and performance. In an era where businesses must be agile and resilient, the ability to coach is no longer a ‘nice to have’ - it’s a necessity."

Coaching skills and the future of work

The Deloitte report stresses the importance of human-centric leadership. With automation handling routine tasks, the uniquely human capabilities of leaders - such as empathy, communication and the ability to inspire - are becoming key differentiators. Coaching skills equip managers to:

• Develop talent more effectively – Employees are more engaged and perform better when they feel heard, valued and supported in their development.
• Enhance team adaptability – Coaching conversations help employees embrace change, experiment with new approaches and build resilience.

• Improve problem-solving and innovation – A coaching approach encourages critical thinking and autonomy, empowering teams to find solutions rather than rely on directives.

• Boost retention and engagement – The report highlights a growing trend: employees stay longer in organisations where they receive meaningful development and support from their managers.

This aligns with findings from It's the Manager by Jon Clifton, which identifies the manager-employee relationship as the single biggest factor influencing engagement, performance and retention. The book emphasises that when managers develop coaching capabilities, they unlock potential in their teams and create workplaces where people feel truly valued.

From managing to coaching – a necessary shift

The Deloitte report presents a compelling case for rethinking leadership development strategies. Organisations that invest in equipping their managers with coaching skills are not just future-proofing their workforce; they are actively enhancing performance and creating more sustainable, high-performing cultures.

This shift isn’t about adding more to a manager’s workload - it’s about transforming how they lead. Coaching skills allow managers to make every interaction count, helping employees grow while achieving business goals more effectively.

Karen Smart adds: "One of the most powerful aspects of coaching is that it creates an environment where people feel empowered to think for themselves and take ownership of their development. This not only strengthens the team dynamic but also enables organisations to cultivate leaders at every level."

The importance of mid-level managers in this shift is also reinforced in Power to the Middle, a book from McKinsey thought leaders Bill Schaninger, Bryan Hancock and Emily Field, that argues middle managers are uniquely positioned to drive organisational change. Rather than being squeezed between strategy and execution, well-equipped middle managers - especially those with coaching skills - become the linchpins of innovation and adaptability in today’s complex work environment.

How to build coaching skills in managers

For organisations looking to embed a coaching culture, structured learning and development opportunities are key. Coaching training programmes, such as the Practitioner Diploma in Executive Coachingor the Coaching as a Line Manager course, provide managers with the tools they need to integrate coaching into their daily leadership practice.

The Deloitte report makes one thing clear: the future of leadership is here - and it’s coaching-led. As Power to the Middle suggests, investing in coaching skills isn’t just about personal development; it’s about unlocking the full potential of your organisation. The question is, are your managers ready?