In a significant shift in corporate strategy, India's leading companies are no longer reserving executive coaching solely for their top-tier CXOs. This premium development tool is now being deployed for high-potential managers as organisations grapple with the dual challenge of retaining senior talent and navigating a complex business landscape marked by technological upheaval and evolving leadership expectations.
The Strategic Shift from Perk to Retention Tool
For years, coaching in the Indian corporate sector was largely a corrective measure or a privilege for the corner office. Experts note it was typically used to address a specific trait hindering a senior leader's business decisions. That paradigm is changing rapidly. Starting this month, over 100 senior executives at the Hinduja group will be trained by external executive coaches, according to Amit Chincholikar, the group's president of HR.
"The emphasis has shifted from purely number-driven and outcomes-based leadership to leaders who are self-aware, authentic, open to vulnerability, and able to bring empathy and even humour into their leadership style," Chincholikar noted. This reflects a broader evolution in what boards and shareholders demand post-pandemic: leaders who can manage uncertainty, lead multi-generational teams, and adapt to the rapid changes brought by artificial intelligence and digital disruption.
Alinaa Menon, founder of True North Coaching Academy, confirms the trend. "Earlier Indian corporates did not have the budget for coaching and those who did, gave it to their CXOs," she said. Today, coaching is being assigned to CXOs and the two levels below them as a core part of leadership development and succession planning.
A Response to Complex Challenges and Payroll Pressures
The rising demand for coaches coincides with a difficult period for retaining senior talent, even in a cooler job market. As salary growth moderates, companies are moving beyond pure cash incentives. Strategies now include clawback options in contracts and more stock-linked compensation without immediate payouts.
Executive coaching fits neatly into this new calculus. It signals a company's investment in an employee's long-term career growth, offering value beyond compensation. The financial logic is compelling. A Mint analysis revealed that employee costs at Nifty 500 firms were 15% of net sales in the September quarter of 2025, down from 15.4% a year earlier. This moderation highlights the pressure on margins and the limits of using compensation alone as a retention lever.
Coaches themselves highlight the increasing complexity of the leadership role. Mahrukh Bandorawalla, an executive coach with 18 years of experience, points to the "level of complexity and ambiguity in business today combined with the need for speed," alongside challenges like hybrid work and a multi-generational workforce. This environment has made coaching a "safe space" for senior leaders facing high-stakes decisions.
Institutionalising Coaching for Scalable Impact
Major Indian business groups are now formalising and scaling their coaching programmes. The RPG Group, for instance, engages 10-12 senior leaders across its companies in coaching each financial year, with engagements lasting six to eight months. "Investment in coaching signifies our faith, commitment, and investment in our leaders to lead their business and people now and in the future," said Udayan Dutt, president of group HR at RPG. The group is also encouraging leaders at the CXO-minus-two level to earn coaching accreditations to build internal capability.
Early adopters like the Aditya Birla Group, which began its programme nearly a decade ago, report significant success. Ashok Ramchandran, director of HR at ABG, shared that 88% of employees who received coaching reported improvements in goal clarity, problem-solving, and job satisfaction. The programme has scaled substantially, with 4,312 employees seeking coaching through the group's internal network. To manage this growth, ABG introduced standard operating procedures, technology platforms, and impact-measurement frameworks.
The trend is clear. As leadership demands intensify and fat pay cheques become a less reliable retention tool, executive coaching is shedding its image as a niche perk. It is now viewed as a strategic, ROI-positive investment essential for building resilient leadership and securing valuable talent in a volatile world.
