By Tom Blower, Underdog Development

Coaching has traditionally been an exclusive privilege reserved for top-floor execs – focussing expenditure on helping senior leaders navigate complex challenges. However, as businesses evolve, the demand for strong leadership and collaboration is growing at every level. Research from Gallup shows that increasing levels of engagement and strengthening corporate culture can lead to significant increases in productivity, revenue growth and retention. A key step organisations can take is scale the benefits of coaching to all levels to provide a more supportive, human-centered workplace.

Research by business consultants Bersin & Associates revealed that equipping managers with coaching skills can boost business performance by an impressive three times. Yet only 10% of employees benefit from coaching – a missed opportunity, especially when 93% of employees say they would stay longer at a company that invests in their growth.

We’re also living in a world with evolving expectations – 76% of employees are calling for greater inclusivity, for instance. Organisations that embrace coaching and inclusivity aren’t just improving engagement; they’re building a stronger, more resilient and future-focused workforce.

What about digital alternatives? While coaching apps and AI-driven platforms have emerged as scalable, low-cost alternatives, they often fail to provide the deep, personalised engagement necessary for real transformation. What’s really needed is a shift in mindset. Instead of treating coaching as a privilege for a select few, businesses should consider embracing a peer coaching model – one that encourages leadership, adaptability and collaboration across the entire company.

Out with old-school approaches

Traditional coaching methods have inherent limitations that hinder broad adoption and impact (high costs and exclusivity to name just two). Plus, the surface-level engagement that AI and algorithm-based matching often provide diminishes effectiveness, as proper coaching requires trust and deep exploration. Embedding ‘human-to-human’ coaching across all levels is proving to be the best way to drive meaningful cultural transformation.

But why peer coaching? Adaptable leaders are needed at every level today. The business world is increasingly unpredictable and fast-paced and managers must be able to reorientate, pivot strategy and act under pressure. Peer coaching offers a structured, reciprocal approach where employees coach one another to address key challenges – rather than working in silos.

The results can be transformative. Peer coaching can deliver:

Adaptive capabilities – leaders are often overwhelmed with daily tasks, leaving little time for strategic thinking. Peer coaching helps them step back, gain perspective and develop leadership capacity.

The ability to navigate complexity – today’s business challenges require diverse perspectives. Coaching helps build collaboration, enabling leaders to ask better questions, actively listen and find innovative solutions.

Strong cross-boundary networks – effective leadership is no longer about individual expertise but collective intelligence. Peer coaching creates spaces for knowledge-sharing, strengthening collaboration across teams.

Making coaching part of culture

To democratise coaching, organisations need to move away from costly, formal coaching programmes and instead cultivate a culture where coaching is an everyday leadership skill. This starts with recognising coaching as a fundamental talent rather than a specialised role, ensuring that active listening and open questioning become core workplace competencies.

Coaching should also be integrated into daily interactions, shifting beyond scheduled sessions to become a natural part of conversations and team dynamics. Providing employees with practical tools and structured frameworks is essential for developing and sustaining these skills over time. Crucially, embedding coaching into workplace culture helps create long-term impact by enhancing adaptability, strengthening problem-solving abilities and improving overall communication across teams.

But it does require clear structure and support mechanisms. Peer coaching isn’t the same as casual advice exchanged at the water cooler. Effective coaching programmes should be seamlessly integrated into leadership development initiatives, building on core principles like confidentiality, compassion, curiosity and courage.

Skilled facilitators play a crucial role in establishing trust and structure within coaching groups, guiding employees through the process. Proven formats, such as small, regular coaching groups of five to seven people, structured sessions and a gradual path to self-sufficiency, empower employees to sustain coaching practices over time. Encouraging individuals to take ownership of their learning ensures that coaching remains an integral part of their professional growth, creating a culture of continuous development and collaboration.

Peer coaching and the bottom line

Traditional coaching typically reaches only a few individuals. In contrast, peer coaching can benefit many more employees, expanding the reach and impact. It offers a strong return on investment by strengthening team relationships, improving communication and enhancing collaboration.

Evidence supports its effectiveness, with studies showing that peer coaching boosts managerial effectiveness and team performance. But businesses need to address key challenges to unlock its full potential.

First, ensuring psychological safety is essential. Creating a trust-based environment is crucial for open and honest coaching conversations. Maintaining coaching quality is another challenge, but structured frameworks and trained facilitators can help ensure that peer coaching remains effective. Finally, while technology, including AI, can support coaching by providing insights and tracking progress, it should complement – not replace – human interaction.

Key steps:

• Build coaching into leadership development and focus on active listening, open questioning and core principles like confidentiality and compassion.
• Encourage self-sufficiency and create small, structured peer coaching groups to help employees take ownership of their learning journey.
• Ensure psychological safety – establish trust to allow open, honest conversations in coaching relationships.
• Use technology – but wisely. AI should support, not replace, human connection in coaching practices. Human interaction and coaching need to be viewed as crucial elements of in building robust businesses that encourage talent to stay, grow and succeed.