Matthew Reeves is the CEO of Together, a mentorship platform that empowers organizations to pair every employee with a relevant mentor.
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Few leaders would argue against the importance of mentorship. The benefits are common knowledge: employees progress faster in their careers, have more confidence in their abilities and often pay it forward by mentoring others. But launching successful mentoring programs takes time and effort—and that means budget.
To get budget, you need compelling reasons beyond “It will improve our culture.” When proposing a mentoring program, you need a clear, measurable impact.
I've helped hundreds of companies pitch and launch mentoring programs, so I can show you how to craft a compelling—and hopefully successful—proposal.
The Cost Of Running A Mentoring Program
Costs associated with running a mentorship program vary based on the size of the organization and the number of employees who will participate. When calculating the budget you need, consider these key factors:
• The salary of the program manager and how much time they’ll spend managing the program
• How many participants you’ll have
• What software you need to run the program
According to our internal pricing data at Together, a mentorship program at a workplace with more than 250 employees can cost between $7,500 and $10,000 per year. When building your suggested budget, use these costs as benchmarks to discuss with stakeholders.
How To Justify The Budget For A Mentoring Program
When we look at the evidence, it’s irrefutable: Mentorship is good for business because it improves culture and individual development. But when crafting your pitch, it’s important to frame the program as an investment and zero in on the most impactful benefits. Consider highlighting these three factors if you want to get the attention of leaders.
Increases Retention Rates
Effective mentoring programs bolster employee retention and reduce turnover rates. This is because it addresses several common reasons why employees leave companies, such as lack of development opportunities and a poor relationship with management. Showing employees that you care about their development and future will encourage them to stay. One of our clients, multinational HR firm Randstad, found that employees who went through its mentorship program were 49% less likely to leave the company.
Provides Upskilling
The World Economic Forum has warned for years that more than half of the global workforce will need to upskill and reskill by 2025. That’s a tight timeline. Additionally, employees want to work for companies that give them development opportunities. A whopping 94% would stay at a company longer if they were given access to learning opportunities.
Mentors can be instrumental in catching employees up to speed on new ways of working. When pitching your mentoring program, frame it around upskilling. Structure the program around training, where new employees are paired with mentors who are knowledgeable in several skill sets. This will provide the opportunity for employees to gain skills in areas of interest while having an actual person to guide them.
Promotes Employee Diversity
It’s undisputed that diverse organizations outperform their peers. A 2021 McKinsey study showed diverse companies have higher revenues on average. A WEF study also showed those organizations are up to 20% more innovative. Most organizations today have diversity goals, and supporting those initiatives is one of the top priorities of mentoring programs.
For example, at Together, we surveyed over 200 HR professionals, revealing that the second most-cited reason for starting a mentorship program was the ability to build a more diverse, equitable and inclusive workforce. The top reason was helping employees reach their potential.
Finally, mentoring often stands above other diversity initiatives' efforts when it comes to actually supporting underrepresented communities as they advance their careers. Harvard Business Review found that diverse representation within management grew by at least 9% in companies with formal mentorship programs.
How To Build Your Business Case For Mentorship
Having a robust mentorship program in your organization is like planting a garden. Just as a well-maintained garden can yield a bountiful harvest, a well-run mentorship program can reap tremendous long-term rewards. But along with the benefits, you also need concrete plans on how you’ll roll it out, what resources you need and who’s involved. What you need is a business case for mentorship.
Here are the most important points you can make.
• Outline the concrete benefits for your specific organization. By now, you know the compelling benefits of mentorship. Ensure your business case tailors the benefits to fit your organization's needs. This way, stakeholders see how it benefits their organization.
• Demonstrate that employees want mentors. Let leadership know that employees are interested in this kind of opportunity. One way to get this information is through surveys. Ask employees about their expectations from the mentoring program, the skills and knowledge they hope to gain and how often they would like to meet with their mentor. Then share this information in your business case presentation.
• Connect it to business goals or values. Show how a mentoring program would fit into your existing strategies. For example, if your company is really focused on learning and development goals, explain how having a mentoring program will impact those in both the short and long term.
The Need For Mentorship Is Clear
Our economy is in turmoil. Getting the budget for any initiative is a struggle if you can’t tie it back to the bottom line. To get buy-in for your mentoring program, connect it with important issues like retention, upskilling and diversity. If you follow the above steps, you'll do well in getting the support you need.
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