The next battle for talent begins with mentorship

At both BBBSA and SHRM, we have seen how companies across sectors have invested in and expanded mentoring options. Almost all Fortune 500 companies In the United States, formal mentoring programs are now offered. Leadership also weighs: More than half of HR executives say they want to see their managers improve their coaching and coaching skills. In other words, mentoring is no longer optional. it is necessary.

Mentorship helps build a better workforce, linking technical skills and the “power skills” that define long-term success: judgment, adaptability, emotional intelligence, and resilience. These are not “soft” skills, but rather differentiation skills. For many first-generation professionals or those without institutionally savvy family members, mentors act “in the shoes of parents,” not taking the place of loved ones, but stepping in with perspective and support that can make a big difference.

Mentoring also helps workers navigate unwritten rules in the workplace. It gives new employees the tools to show up, speak up, and thrive. Now, with the opportunity to truly integrate mentorship into talent strategy, HR leaders should consider three key returns on investment: improving talent outcomes, increasing employee engagement and productivity, and improving upward mobility.

Companies that focus on employee retention cannot ignore how their employees who are mentored are more likely to stay than those who do not. In fact, 4 in 5 organizations that offer formal mentorship programs find them effective in addressing talent shortages, according to SHRM. When employees feel supported, connected, and trusted, not only are they motivated to stay in the organization, but the company culture improves as well.

Mentored employees also report higher engagement and a stronger sense of purpose. Mentorship enhances confidence and ability, and has even become a powerful tool for enhancing accessibility and belonging. This is especially true for Gen Z and millennial workers 83% of young people Report that they believe a mentor can help them as they enter the job market. Once employees are equipped for success, they become more productive.

Mentoring also creates a path to upward mobility, which in turn benefits society: Youth who participate in mentoring programs receive a 15% increase in income between the ages of 20 and 25, according to By researchers from Harvard University and the US Department of the Treasury. Trainees’ income trajectories align more closely with their mentors than with their families, effectively reducing the socioeconomic gap by two-thirds. They are also 20% more likely to pursue higher education and show better school attendance, behavior and social outcomes. This is a win-win for individuals, communities and employers looking to unleash human potential.

Although technology can ultimately expand the scope of these efforts, it cannot replace the power of human connection. At SHRM, we talk about “AI+HI:” artificial intelligence plus human intelligence, because we know that AI can facilitate matching and scheduling, but mentoring thrives on the authenticity, emotional connection, and trust that only humans can cultivate.

Bottom line: Mentorship unlocks talent and builds culture. It makes us better colleagues, stronger leaders, and more effective organizations. Competitive organizations need every tool available to recruit and retain the best talent and build a better workforce, and mentorship can be a critical factor in making the difference.

So, let’s redefine mentorship as a business necessity — and one of the smartest investments we can make in the future of work.