Coaching, Managing, and Why Great Leaders Know How to Do Both

Sometimes, two employees with similar roles at the same organization end up on very different paths. 

One is thriving–actively engaged, growing in their role, and contributing in ways that go beyond their job description. The other is stagnant, showing up to do what’s expected, and clocking out without much connection or energy.

The difference could be in part to work ethic or personality, but, in many cases, it comes down to leadership.

At Powerhouse HR, we’re passionate about helping our clients thrive alongside their people. One of the most common shifts we encourage is moving beyond the traditional view of “management” and embracing a coaching mindset. This doesn’t mean every manager needs to become a certified coach,  but it does mean the most effective leaders today understand when to manage, when to coach, and how to do both well.

The Difference Between Managing and Coaching 

Managing and coaching aren’t interchangeable. While both fall under the umbrella of leadership, they serve very different purposes and are done in very different ways. Managing is about structure, process, and outcomes, making sure the right tasks are getting done, at the right time, in the right way. Managing involves setting expectations, monitoring performance, and driving toward business goals.

Coaching, on the other hand, is about development. It’s focused on helping employees grow, not just in their current role, but in their capacity to think critically, lead themselves, and navigate challenges. It’s less about telling someone what to do and how they should do it, and more about helping them uncover how they want to approach the work, what’s getting in their way, and how they can get better.

If managing is about control and clarity, coaching is about curiosity and connection. The best leaders don’t just do one or the other, they're fluent in both.

Mastering Managing & Coaching

The data is clear: managers who coach create stronger, more engaged teams. Gallup research shows that employees who have regular coaching conversations are three times more likely to be engaged, significantly less likely to experience burnout, and more likely to stay with their organization.

This is especially important in industries like hospitality, retail, and healthcare, where burnout and turnover can be high. When employees feel like their manager is invested in their growth, not just their output, they're more likely to stay, grow, and contribute meaningfully over time.

Coaching also helps future-proof your workforce. Managers who know how to coach are constantly developing talent. They’re preparing the next layer of leaders, solving problems before they escalate, and building teams that can think independently. That kind of leadership improves morale and drives performance.

You don’t need two separate job titles or two separate people to bring both managing and coaching to the table. The strongest leaders learn to read the room, and the individual, before choosing how to show up.

A new employee may need more direct instruction, with clearly defined responsibilities and check-ins to stay on track. That’s good management. But once that employee is up and running, continuing to manage them the same way can feel restrictive. That’s the moment to shift into coaching. Try asking them how they’d like to tackle a new challenge, explore what’s working and what’s not, and be genuinely interested in their desire for growth.

Even high-performing team members need both. Coaching without structure can feel vague. Management without coaching can feel transactional. The key is creating space for both accountability and development.

Regular one-on-one meetings are a great place to start. Instead of only reviewing tasks and deadlines, incorporate questions about long-term goals, recent challenges, and what kind of support they need. Use feedback moments not just to correct, but to ask how the employee might approach it differently next time and what they learned from the experience.

You don’t need a background in professional coaching to apply a coaching mindset. You just need to shift the way you think about leadership. That starts by asking more questions and offering fewer answers. Not because you don’t know the solution, but because it empowers your team to develop their own.

Simple prompts like, “What do you think is the root of this issue?” or “If you had full ownership, how would you approach this?” can open up powerful conversations that can make a true difference for both your team and your company. And when you do offer advice, frame it as a thought partnership rather than a directive.

It also means getting comfortable with slowing down. Coaching takes time, and the ROI isn’t always immediate. But the long-term impacts, like better decision-making, stronger relationships, and deeper loyalty, makes it worth the investment.

Psychological safety plays a big role, too. Employees won’t open up if they’re worried about being judged or penalized. Managers who coach well are usually trusted, empathetic, and consistent. They know how to hold people accountable without shaming them and how to challenge without breaking trust.

The Leadership Shift That Changes Everything

Strong management keeps your business running. Coaching helps it evolve. They each have a place, but when leaders combine the two, teams become more resilient, more engaged, and more prepared for whatever comes next.

So if you’re wondering where to start, ask yourself this: Do I spend more time directing than developing? Do my employees feel like I trust them to grow?

You don’t have to have all the answers. But if you’re willing to start asking better questions, you might be surprised at what your team is capable of.