Why Every Company Needs a Mentorship Program Today

A mentorship program can bring both short-term and long-term benefits to a company and its employees. In fact, historical data from top companies shows its growing importance. In 2004, only 70% of Fortune 500 companies had a mentorship program, but by 2024, that number had increased to 98%.

A structured mentorship program is now widely recognized as a strategic business asset. Companies generate higher revenue — and thus rank higher on the Fortune 500 list — when they have one.

I created the Rahm Foundation to cultivate an environment in which high-potential individuals can grow into industry leaders. The foundation has done wonders for my company’s talent attraction and retention, so now I recommend all business owners implement their own mentorship program.

Even before they’re hired, motivated individuals are attracted to companies visibly committed to career development. For experienced professionals, I’ve found that they see mentorship as a chance to fine-tune leadership skills and ensure mentees feel comfortable sharing their thoughts.

Related: Everyone Needs a Mentor — But Being a Mentor Is Just as Important. Here’s Why.

What is a mentorship program?

Building a mentorship program for your company will look as unique as your company itself; no two programs are the same. However, a mentor generally seeks to support a mentee’s professional growth, learning and career development. If both individuals can learn from each other, the mentor can be anyone from a direct manager to a peer.

At the Rahm Foundation, we use a healthy mix of common ground and new perspectives to pair two individuals together. We look for this in skill sets, leadership qualities and personal goals for both the mentor and mentee. This pairing approach increases the chances for a relationship where both mentees and mentors feel challenged.

Although these relationships could potentially occur naturally, a mentorship program formalizes the process. This is the key ingredient of the program: bringing informal knowledge sharing to the next level. A mentorship program offers the structure — and accountability — to ensure true mentorship and career development.

How to develop a mentorship program

The SMART method is particularly helpful to determine your goals. After they’re defined on an organizational scale, work with your team to develop goals on a mentor-mentee level. At the Rahm Foundation, we use both quantitative and qualitative data to measure success.

Of course, information such as retention rates, internal promotions and even overall company performance helps to tell the story. But I find the biggest sign of success is when a mentee decides to return to the program as a mentor. Beyond building up a new leader, it means the program has inspired them to give back.

This means that any initiative is only as great as its people. When you’re choosing program leaders, select people who are passionate about helping others, because their enthusiasm can be infectious. With your new leadership team in place, you can determine how to receive feedback, choose pairings and plan company-wide mentorship events.

Next, spread the word about your new initiative. To maximize participation in the program, work with your marketing team to produce internal communications on the topic. The priority should be to deliver a clear message on the benefits of joining the program, whether through email, a company-wide kick-off event or flyers and posters around the office. Don’t discount word of mouth either, which can have a significant positive effect on program adoption.

Related: 5 Reasons Why Mentoring Young People Will Make You a Better Leader

Key components of a mentorship program

For your mentorship program to fully take off and stay on course, it will need consistent care. This is a group effort by everyone involved — mentors, mentees and the leadership team. A helpful way to approach this is through clarity, communication and commitment.

Clarity requires making sure participants understand how the mentorship program works at your company. They should understand everything from the program’s SMART goals to how mentor-mentee pairings were chosen, as well as the skills being developed by both the mentor and mentee. This can include working on effective listening, building rapport, asking the right questions and sharing feedback.

Consistent communication is also essential. This includes briefing mentees’ managers on the time commitment required for their participation in the program. The time commitment for mentors should also be effectively communicated. Consistent internal communications, including success stories, can highlight your organization’s true commitment to supporting its employees.

Committing fully requires taking a long-term view of the mentorship program. Since results may not be visible until weeks or months later, encourage your participants to check in at regular intervals. Then, collaborate with the leadership team to address any program pain points. As it gains traction, commitment may also include taking a strategic look at the program and optimizing it for an improved structure.

When we launched the Rahm Foundation’s mentorship program, our goal was to help people find their voice and sense of purpose. Not only does it create an environment where healthy collaboration is the norm, but the resulting workplace culture has been proven to support your bottom line. When you invest in a mentorship program, know that you are also investing in the long-term success of your company.

A mentorship program can bring both short-term and long-term benefits to a company and its employees. In fact, historical data from top companies shows its growing importance. In 2004, only 70% of Fortune 500 companies had a mentorship program, but by 2024, that number had increased to 98%.

A structured mentorship program is now widely recognized as a strategic business asset. Companies generate higher revenue — and thus rank higher on the Fortune 500 list — when they have one.