Mentoring – it’s more than just guidance; it’s a strategic advantage leveraged by approximately 92% of Fortune 500 companies. Recently, the 2023 Mentoring Impact Report unveiled an 8% climb in mentorship amidst global economic turbulence. But why this surge? The telltale numbers speak louder than words.
Companies embracing mentorship programs not only expanded their workforce by 4% but also turned the table on the average 33% decrease faced by others. The icing on the cake? The robust relationships galvanized by mentorship resulted in a staggering 110% yearly profit hike. Clearly, mentoring isn’t merely an add-on – it’s a vehicle for transformative business growth.
What About Small Businesses?
Data published by the U.S. Small Business Administration has shown that 70% of small businesses that receive mentoring survive for over five years. This is double the rate enjoyed by non-mentored organizations. What’s more, around 88% of business owners that opt for mentorship believe without a doubt that it is valuable.
Many small business founders have impressive skills and abilities in their specialization, but may need advice regarding legal, marketing, and accounting issues. As such, counselling can form part of the very essence of a thriving business; one that has fixed strategies for foreseen growth in place.
Often, small businesses with few employees opt for business coaching, which is similar in spirit to mentoring, but which tends to last shorter. Like mentors, business coaches help companies set goals, identify impediments to success, and provide advice on aspects such as leadership. Once these businesses are up and running and staff sizes increase, long-term mentorship (lasting an average of three years) enables both executives and entry-level staff alike to expand their networks, hone business and leadership skills, and identify blocks to progress.
Mentoring and Motivation
The Great Resignation and Quiet Quitting are two post-pandemic phenomena whose effect can be ameliorated through mentoring. Anthony Klotz, an associate professor of management at Texas A&M University, coined the term “The Great Resignation” to describe the result of employees having remained in jobs they were unhappy with because of troubled times. His idea isn’t just an attractive prediction; it is backed by data obtained by the US Bureau of Labor Statistics, which has found that between April 2021 and April 2022, around 71.6 people quit their jobs.
That amounts to a whopping 3.98 million people leaving their jobs every month! Quiet quitting, meanwhile, involves workers striking to the strict confines of their job descriptions, often as a means of dealing with unhappiness and stress in their jobs. In many ways, quiet quitting can be seen as a precursor to resignation.
Mentoring can help reduce both phenomena, by serving to motivate employees, highlight the value of lifelong learning, and encouraging employees to help others. In fact, statistics show that 89% of mentees say they will go on to mentor others in the future.
In Search of Connection
Building a sense of connection is vital for businesses wishing to stand the test of time and attract top talent. Research by Springtide has found that around 83% of Gen Z workers seek the kind of learning and growth that result from mentorship. However, only 38% currently have a mentor.
Indeed, the power of mentorship to build close relationships cannot be overstated. Mentors who share impactful stories, experiences, and advice instantly create the vital sense of support, friendship, and camaraderie that younger generations of workers seek. A study by the American Society for Training and Development found that mentees have higher job satisfaction and are more committed to their employers.
Bridging Gaps
Modern-day companies are prioritizing diversity and inclusion than ever before and once again, there are powerful reasons for doing so. Businesses in the top quartile for ethnic diversity enjoy at 36% higher likelihood of financial out-performance and diverse companies earn a 2.5 times higher cash flow. These teams make better decisions and are more productive—and mentorship can play a vital role in retaining a diverse workforce. One study by the Harvard Business Review, for instance, found that mentoring programs improve the representation of women and minorities in leadership positions.
Increased Networking Opportunities
Mentors often have access to a large, established network; one that those starting in businesses would love to access. Research by the National Bureau of Economic Research shows that mentorship provides mentees with networks and resources they would not have otherwise possessed. The same body of research found that entrepreneurs who took part in mentorship programs were more likely to connect with target customers and partners and obtain access to important industry events.
In trying economic times, mentorship has proven to be an impactful strategy for businesses wishing to succeed. Mentorship provides the support and connection that new employees need and is motivational for both mentors and mentees. It also enables mentees to access networks that can prove useful, not only for themselves, but also for the businesses they represent. Mentorship is an important step in creating a diverse, inclusive team—one that boosts the presence of women and minorities in leadership positions and sets a business apart from its less savvy competitors.
