Demonstrating the return on your investment
Measuring for Success!
Metrics or things called Key Performance Indicators (KPI’s) are really just a way of measuring activity and outcomes and to demonstrate what’s called a ROI (Return On Investment).
If you are investing money in the software, planning and management time, and then the time itself of your employees (who could be doing something else of course!) – then you need to make darn sure that your mentoring program is paying for itself and adding to your bottom line. Or if your main ‘raison d’être‘ isn’t money – then the ROI should benefit the goals of your organization.
What is the ROI of using a Mentoring Software itself:
- Time saved by administrators (numbers of hours saved over hourly rate)
- Growth of your program through added functionality and engagement
- Additional metrics to demonstrate value to the business
With MentorEase, a monthly subscription cost for each participant can be as low as 39 cents, even for smaller programs!
Specific Metrics include:
- Number of Mentors
- Number of Mentees
- Number of Successful Matches
- Number of Meetings per Match
- Participants that Complete Milestones
- Action Plan Goals Completed
- Completion of Final Survey
- After Match Survey
- Number of Minorities Participating (if that’s a metric)
In depth metrics can include:
- Talent Acquisition – Mentored interns who choose full time employment after graduation
- Talent Management – Mentees who get better Performance Appraisals in the their roles after mentoring
- Talent Promotion – Number of Mentees who successfully got a job or moved upwards in an organisation.
- Talent Retention – Costs saved in recruitment if mentoring program helps a % of employees stay for a longer period.
For larger organizations it’s possible to also measure the ROI of your mentoring program over time. We could connect MentorEase to ‘talk’ to your HRMS system, and then track those who participate in comparison to those who don’t. Once you understand the difference between the two numbers you can do a quick calculation of the ROI of your program.
For example (this is just an broad example, obviously you would need to work out your cost base and salaries etc.):
|% Turnover Reduction:||2%|
|# Program Participants:||300|
|Hiring Cost: (assume avg salary of $60K and 125% to re-hire)||$75,000|
|Overall Value (Savings):||$450,000|