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Once a “nice-to-have” tool in the human resource manager’s toolbox, coaching is increasingly being seen as a strategic instrument to improve individual performance and develop leadership potential, according to a study.

The Canadian Management Centre’s study, Coaching: A Global Study of Successful Practices, reveals that an overwhelming executives believe coaching is associated with improving individual performance and developing high-potential employees/leaders.

The study also finds that coaching is only used by half of today’s companies—52% North American businesses and 55% of international companies have programs in place. Moreover, of those organizations that do not currently have coaching programs in place, 37% of North American and 56% of the international respondents claim to have plans to initiate coaching.

“The days of viewing coaching as a cottage industry of questionable value are over,” says John Eckmire, who leads Canadian Management Centre’s coaching practice. “For human resource managers looking to optimize the performance and potential of their existing labour pool, coaching can no longer be ignored.”

The study also concludes that coaching will be a competitive advantage for companies who are quick to recognize its merits and implement a focused program.

“As workforce demographics shift and boomers retire, ensuring high retention levels and attracting a steady stream of talent with leadership potential will become essential to the continued success of Canadian businesses,” he adds. “Coaching can play a vital role in developing high-potential employees—one-on-one contact reveals strengths and helps managers plot a path for career growth through consensus-building.”

To read the report on the Canadian Management Centre’s website, click here.

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Higher Bond Yields Mask Pension Plan Losses

The large decline in global stock markets at the end of the second quarter has pushed the aggregate estimated financial position of pension plans of large American companies further into deficit by US$10 billion, according to an analysis conducted by Mercer.

This comes on top of estimated losses in the first quarter in excess of $70 billion, bringing the half-year total loss on assets and liabilities to over $80 billion.

Since October of last year, losses now stand at over $160 billion. However, Mercer believes that without an increase in high-quality corporate bond yields, which are used by most companies to measure the value of plan liabilities, the losses would have been worse.

Since the credit crunch really started to hit home in October last year, asset losses in the pension plans of American companies have been about $280 billion. However, companies must consider the assets and liabilities together,” says Adrian Hartshorn, a member of Mercer’s financial strategy group.

“The credit crunch has increased the yield on AA corporate bonds, a measure used by accountants to place a value on pension plan liabilities. We estimate the higher corporate bond yield has reduced the liability value by approximately $120 billion, giving a net loss of $160 billion,” he adds. “With many companies adopting a December 31 financial year-end, part of this loss will already be reflected in company financial statements. However, losses incurred since December 31, 2007, currently running at over $80 billion, have yet to hit company balance sheets.”

The calculations are based on the Financial Accounting Standard (FAS) funding position and include analysis of the S&P 1500 companies.

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Germany’s Innovest Chooses BNY Mellon

BNY Mellon Asset Servicing, the global leader in securities servicing, has been appointed by Innovest Kapitalanlagegesellschaft AG as global custodian for its full global fund range, including 76 different funds and sub-funds.

Innovest’s global portfolio contains assets exceeding US$4.4 billion, covering 58 different markets. In addition to global custody, BNY Mellon will be providing Innovest with an array of cash management and foreign exchange support services.

A subsidiary of Siemens Financial Services, Innovest is amongst Austria’s largest funds-of-funds managers for institutional investors, with more than $10 billion in assets under management.

The foundation for appointment of BNY Mellon was laid when Innovest’s longstanding local depot bank, Allianz Investmentbank AG, converted global custody for all Austrian Allianz funds to BNY Mellon last year.

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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