Why Coaching and Mentoring Have Become Essential Soft Skills in Modern Business

In every industry across Australia, one theme is becoming impossible to ignore. The people who thrive are not only technically capable; they are the ones who know how to communicate, guide others, and foster growth in their teams. Coaching and mentoring are no longer optional skills; they are now a core part of what makes someone effective in business, leadership and day-to-day work.

Whether you are already leading others, stepping into a team leader role, or wanting to boost your confidence and capabilities, coaching and mentoring help you grow faster, solve problems more effectively, and build trust with the people around you.

And equally important is the ability to receive coaching and mentoring with openness. Being coachable is one of the most underrated professional strengths, yet it consistently separates high performers from those who stay stuck.

Why Coaching and Mentoring Matter Now More Than Ever

The world of work is changing quickly. Automation, flexible workplaces, and rapidly shifting business environments mean that human skills have become the most significant differentiator.

Recent research shows that:

• 92 per cent of Australian organisations say human skills such as communication, coaching, adaptability and emotional intelligence are critical for the future (Deloitte Australia, 2024)
• Companies with strong coaching cultures report higher business performance, higher employee engagement and stronger retention (International Coaching Federation)
• Employees who receive mentoring are promoted five times more often, and mentors are six times more likely to be promoted themselves (Sun Microsystems Workplace Study)
  

In short, people and businesses grow faster when coaching and mentoring become part of everyday work.

Coaching and Mentoring: What’s the Difference?

Many people mix the two, yet they serve different purposes.

Coaching

Coaching focuses on performance, capability and behaviour. It is usually shorter, more focused on achieving specific goals, and is led by questions that help the person uncover their own answers.

Coaching sounds like:

• “What do you need to move forward?”
• “What strengths can you draw on here?”
• “What is the next best step for you?”
  

A coach builds capability and confidence. They guide without solving the person’s issue.

Mentoring

Mentoring is relationship-based. It is a longer term, focused on guidance, wisdom and experience. A mentor shares lessons learned, offers direction and helps someone navigate their career or workplace culture.

Mentoring sounds like:

• “Here is what helped me when I was in that situation”
• “Here are the pitfalls and opportunities you may not see yet”
• “Here is how you can position yourself for the future”
  

Both forms of support are powerful. Together, they accelerate growth.

Why Being Open to Coaching and Mentoring Is a Skill

People often want to grow, yet resist feedback, guidance or support when it is offered. Learning to be coachable is one of the most valuable traits you can develop.

Being open to coaching and mentoring helps you:

• Build self-awareness and recognise patterns you cannot see on your own
• Strengthen your emotional intelligence and resilience
• Develop faster in your role or step into new opportunities
• Reduce stress and overwhelm by gaining tools to navigate challenges
  

Employers increasingly look for coachability because it reflects maturity, willingness to grow and an ability to adapt.

How to Deliver Coaching and Mentoring as a Leader or Aspiring Leader

You do not need a formal title to coach or mentor someone. What you need is intention and skill.

Great leaders:

• Listen more than they speak, creating space for reflection and clarity
• Ask questions that help people think, rather than giving answers straight away
• Guide without rescuing, building confidence rather than dependence
• Give clear, kind, constructive feedback, even when the conversation is uncomfortable
• Model the behaviours they want in their team, because people follow what you do
• Balance support with challenge, helping people stretch without overwhelming them
  

These skills create trust, accountability and high performance in any team.

Why Businesses Should Invest in Coaching and Mentoring Capability

Workplace performance is no longer driven solely by technical knowledge. Teams perform at a significantly higher level when coaching and mentoring become part of the culture.

According to Jobs and Skills Australia:

• Roles requiring soft skills such as communication, problem solving, coaching and people leadership are growing faster than roles that rely only on technical capability
• Leadership positions are expected to see strong national growth due to capability shortages rather than job shortages
  

This means organisations need people who can lead humans, not just processes.

Training teams in coaching and mentoring improves:

• Engagement and retention
• Innovation and collaboration
• Psychological safety
• Workplace wellbeing
• Productivity and performance
  

When people feel supported and challenged in the right way, they are far more likely to grow, stay and contribute at a higher level.

The Future Belongs to People Who Can Develop Others

Whether you are a manager, a team leader, a business owner or someone wanting to step up, your ability to coach and mentor others will shape your career.

It helps you:

• Communicate with impact
• Build trust
• Navigate difficult situations with confidence
• Develop capability in your team
• Influence and lead more effectively
  

And most importantly, it makes work more meaningful. Coaching and mentoring give you the ability to help someone grow, think differently and unlock strengths they may not have realised they had.

These are not just leadership tools; they are human skills. The skills that will define the leaders of 2026 and beyond.

If you want to discover how you could learn the incredible effects of receiving and providing coaching and mentoring skills in the workplace, click here and take a look at the business courses that could help you in 2026 or call 1300 915 497.