In the new organizational era, it appears we have a new buzz term: “talent crisis.” On September 19, 2008, BusinessWeek reported in an article called “The Global Talent Crisis” that, “Companies and countries will need more than 4 billion people by 2020 to fill knowledge worker positions. Projections indicate that there will be shortages between 32 million and 39 million people to fill these positions. The U.S. will have the biggest shortfall—needing as many as an additional 14 million people.”
To add to the bleak picture, consider this: A 2008 study by Deloitte Research found that one in three new hires leave a company within the first year of employment. The first-year turnover rate grew to 31.7 percent in 2007. In addition, according to Business Performance Management (BPM) Forum and Success Factors, which conducted a survey of over 700 human resource professionals (in cooperation with the Human Capital Institute), 98% of respondents said competition for talent is increasing in their industry, and 65% said it’s increasing to a “high” or “very high” degree.
As you can see, attracting, developing, and retaining top talent is likely to remain a challenge. What companies need is a proactive and viable solution to this challenge. Luckily, that solution exists: mentoring programs. Mentoring programs involve matching talented, experienced employees (mentors) with promising, less experienced employees (mentees). Over time, working one-on-one, the mentor and mentoree—and the organization—reap real rewards.
A successful mentoring program benefits your organization by:
- Enhancing strategic business initiatives
- Encouraging retention
- Improving productivity
- Engender collaboration across departments
- Linking employees with valuable knowledge and information to other employees in need of such information
- Using your own employees, instead of outside consultants, as internal experts for professional development
In this article, I would like to share how Mentoring can benefit your organization:
Attract the Best & Brightest
Your organization’s reputation is a huge incentive for eager and skilled prospects to join your organization. However, with ‘talent crisis’ this scenario changes. Think of it like this: if a prospective employee is deciding between a company with an outstanding reputation but a notoriously brutal work environment and an organization with an outstanding reputation and a proven mentoring program that grows and nurtures its top talent, which company will the person likely choose? A planned approach to a person’s career development, such as a mentoring program, has become a “must-have” for organizations that want to attract top talent. When marketing to prospective employees, advertising that your company has a professional and effective mentoring program can be a significant differentiator between you and your competitors.
Develop Your Employees into Tomorrow’s Leaders
Developing your company’s junior employees can be a daunting challenge. Where does a new employee go if he or she wishes to gain from the experience and wisdom of a more seasoned manager? Yes, new employees can always turn to their immediate supervisors and HR directors, but there is an inherent hesitation to do this because the new employee doesn’t want to appear “incompetent” or “weak.” Mentoring can provide not only the experiential wisdom, but also a supportive environment whereby the newer employee can share the real issues affecting success. During the mentoring relationship, mentees and mentors will discuss important issues, such as how to interact and work effectively with your top clients; how to get along and communicate with peers and upper management; how to understand and fit in better with your organization’s “corporate culture”; and how to deal with increased scrutiny; plus so much more. While baptism by fire often remains a popular strategy for getting new employees up to speed, it still makes sense to provide a safe haven—the mentoring relationship—where the associate can relax and let down his or her guard.
Retain Top Talent & See High ROI
According to the Deloitte Research study, “Research suggests that a company’s ‘HiPos’ are the first to be poached and are less likely to stay. Also, a study of investment banks found that when imported from elsewhere, stars rarely sustain their performance in the new organization.” The last thing you want to see is your HiPos walk across the street to one of your competitors. Talent retention affects the bottom line not only by reducing costs, but also by building an effective workforce. Companies often invest hundreds of thousands of dollars in recruiting talent but then stop there and miss the opportunity to get the best return on their hiring investment. Mentoring is a strategic tool that has multiple outcomes for your organization:
- Demonstrate to new employees the company’s investment in their future with the organization
- Create a more effective contributor to the company’s overall goals
- Engender a sense of loyalty in employees
Succeed in Succession Planning
Mentoring is an ideal strategy for enriching your succession-planning program. In succession planning, you’re targeting individual talent to take on increasingly more responsible positions and eventually assume a major position within your organization. This requires solid experience and solid advice from seasoned employees. Adding mentoring as a method of pairing such individuals with your talent pool ensures that the right expertise will complement your succession-planning goals. Mentoring also ensures that your senior managers’ expertise will not be lost once they retire or leave the company. Rather, the expertise will be retained by having been shared with those who are poised to take their place.
It’s evident by now that mentoring programs can achieve many positive results when implemented in the most effective way. Also, read How DHL & Sun Nailed IT With Mentoring to know how you can implement a successful Mentoring Program.