Building a Business Case For Mentorship Programs

Ask any experienced leader to recount their journey up the career ladder, and they’ll likely have a story that features an influential mentor who helped them develop new skills or made an invaluable connection that altered their career trajectory. Seventy-five percent of executives believe mentoring was key to their success. Mentor relationships offer powerful career development for a professional and are equally valuable for the company that employs the professional. 

Organization-sponsored mentorship programs build skills for the mentor and mentee, foster deep connections with colleagues, and develop engaged employees at any level or role. For many HR or Learning & Development (L&D) leaders to secure the budget and resources to operate a vibrant mentorship program, it’s essential to highlight the business outcomes that will result from investing in mentorship. In this article, we’ll look at the three outcomes of mentorship programs that contribute to a robust and agile workforce. 

Lowers employee attrition rates

Mentorship goes beyond simple skills development. A formal mentorship program enhances the employee experience by providing a safe space for learning, feedback, and career guidance from peers or leaders. More than 9 in 10 workers with mentors say they’re satisfied with their jobs. And they’re more likely to believe their contributions are valued at work.

An engaged and motivated employee is one less likely to leave the company. Randstad, an HR services provider, found a 49% reduction in employee turnover after increasing its investment in global mentorship programs. Randstad estimated this decrease in employee attrition to save the company $2,900 per program participant per year.

Builds the next generation of leaders

Great leaders don’t typically appear at a hiring manager’s doorstep. Organizations know that they can’t wait for the company’s future leaders to come to them; they must nurture it from within. Mentorship programs allow organizations to build a pipeline of promising leaders. By pairing seasoned leaders with rising stars, companies are developing mechanisms for business continuity now and in the future. By allowing experienced veterans to transfer their knowledge to the company’s next generation, they’re passing along insights, best practices, and lessons that can’t be taught in a classroom. The future cohort of leaders is eager to learn, according to Deloitte. Millennials, the generation moving into high-level leadership positions, are twice as likely to stay with a company that offers mentorship opportunities. 

Fosters a culture of learning and long-term innovation

In a busy world with meetings filling calendars and screens of all sizes competing for our attention, fostering a culture of learning within a company can be a challenge. Mentorship programs are an ideal way to add learning to the everyday flow of employees’ work. When they meet, mentors and mentees set aside time to exchange ideas, discuss new approaches to existing challenges, or share developments on the latest industry news. This creates a dynamic learning environment where knowledge is shared openly, and employees are encouraged to embrace a growth mindset.

The innovation that results from a growth mindset spills over into all aspects of the organization. According to research highlighted in Forbes, companies with mentoring programs see profits 18% better than average, while those without mentoring programs see profits 45% worse than average. Employees who are comfortable learning and adapting are better equipped to tackle new challenges and navigate an ever-evolving business landscape. 

Mentorship is an investment for a thriving future

By connecting mentorship programs to long-term business outcomes, you can garner the necessary support to create and sustain a successful mentorship program. The development opportunities that formal mentorship programs provide result in engaged employees who stay with companies, become future leaders, and have the growth mindset to meet tomorrow’s challenges head-on. Learn more about how to ensure a changing workplace can meet future challenges with our strategies for success in the multigenerational workforce.