Mentoring Builds Meaningful Relationships and Meaningful ROI
In celebration of May as Global Employee Health and Fitness Month we have been highlighting why mentoring should be part of your employee well-being initiative. In Parts 1 and 2 we shared how mentoring programs increase social connectedness as well as support an inclusive culture (need link to this). Both topics feed into our final segment: investing in your employees well being through social connection positively impacts your bottom line.
“If you can measure the results and adjust your mentoring methods accordingly, you can maximize the corporate profitability of a structured mentoring program.” - Paul MacCartney, MentorcliQ Chief Learning Officer.
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That profitability comes from improved employee retention, enhanced work output from engaged staff, and from employees having a richer understanding of corporate culture and goals which flow from a structured mentoring program.
Gallup's most recent State of the American Workplace report reinforces this message. Gallup’s findings strongly support that connection between employees as part of professional development improves performance and holistic well being. In turn, this supports employee engagement and affords mentoring program participants with a more vibrant understanding of company culture.
Gallup reports that as a whole, just:
Employees agree they have a best friend at work
Employees agree someone at work encourages their development
Employees agree someone at work cares about them as a person
This is markedly different from results seen after a structured mentoring program supported by MentorcliQ software (check out the results below).
Organizations that focus on building an inclusive environment with strong social connection that encourages collaboration and cohesion have employees who are more productive, innovative, and motivated. When employees have someone who cares about them professionally and personally and have opportunities to develop they are more likely to take positive actions that benefit the business. This is why the ROI of mentoring programs are so strong.
It is widely accepted that happy employees who are engaged in the corporate mission are more productive for longer periods, however this can be difficult to measure. It is also widely accepted that employees who are engaged in the corporate mission are more likely to stay in their roles and grow with the company. This is much more straightforward measurement of ROI.
But how do we quantify mentoring program ROI?
As stated previous, at MentorcliQ we use a retention based ROI calculation to support the value of mentoring beyond an employee perk. We use this metric because happy and connected employees who are offered the opportunity to be better and do more through mentoring are more likely to stay with their organization. This results in significantly reduced turnover costs for the organization. In many cases this potentially saves a company millions of dollars as the cost of voluntary turnover can be 1.5 - 2x that employee's salary. Not to mention the loss of an immeasurable wealth of knowledge and experience as voluntary turnover occurs more often amongst high performers.
Below are just a few of the many examples of MentorcliQ customers who see the impact of ROI in their programs:
as a result of a 41% decrease in employee turnover
in retention savings as a result of a 50% decrease in employee turnover
as a result of a 76% decrease in employee turnover
Interested in calculating the ROI of your mentoring program?
In order to calculate retention based mentoring ROI you divide your Retention Savings by your Mentoring Investment.
Using the following example, if an organization invests $100,000 in mentoring and sees $1 million from retaining 10 employees with a $100,000 replacement cost per employee, the program has a 10x ROI.