Coaching is a critical component of any talent management strategy because it can lead to improved employee engagement, increased productivity, better morale, higher retention, and increased customer satisfaction. For coaching efforts to succeed, they should be tied to leadership development programs and performance reviews. This is especially important when developing high potentials, new managers, and young leaders so they will have the confidence to take risks and the ability to recognize behaviors that hold them back. Coaching can also help employees define career paths.