Career Peer Networks

Part
01
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Part
01

Career Mentorship Programs

We have identified career mentorship programs currently being used by large companies (minimum of 25,000 employees) with headquarters in the US. The companies in focus are Caterpillar, Intel, General Electric (GE), Deloitte, Boeing, Liberty Mutual and KPMG US. Below we provide a deep dive into our findings, outlining the career mentorship programs implemented by each of the companies mentioned above.

Findings

1. Caterpillar

Industry: Financial services, heavy equipment, manufacturing
Employees: 114,000
Headquarter: Peoria, IL

Caterpillar implements an immersive mentorship program for early career employees and recent graduate hires, which allows them to experience various departments over a period of three years. Employees get hands-on experience and build relationships with program mentors and senior management within each department. More specifically, employees spend one year within the manufacturing engineering department, one year working in operations supervision and the final year in a cross-functional department such as logistics, quality or purchasing.

2. Intel

Industry: Technology
Employees: 95,000
Headquarters: Santa Clara, CA

Intel offers a highly-personalized mentorship program which pairs new employees with human or virtual mentors based on their individual interests and skills. Employees complete a survey to identify their areas for future development and interest and are assigned accordingly. Furthermore, responsibility for the processes involved in the program is largely left to the employees themselves, allowing them to take charge of their own future and learning. The program also fosters engagement and a greater sense of mastery and autonomy.

3. General Electric (GE)

Industry: Power, healthcare, transportation, medical devices.
Employees: 305,000
Headquarters: Boston, MA

GE provides a number of programs including the Commercial Leadership Program which aims to develop the marketing and sales skills of entry-level employees. The program runs for two years and is identified as a "premier entry-level program". Furthermore, GE also offers the Edison Engineering Development Program and the Field Engineer for Global Operations program, both of which feature coaching and mentorship from experienced employees and managers.

4. Deloitte

Industry: Financial services
Employees: 225,000
Headquarters: New York, NY

Deloitte implements the Emerging Leaders Development Program which pairs employees from under-represented populations with a mentor from either partner, director or principal leadership levels. Each mentor commits to a two-year mentorship period to ensure full navigation and assistance with shaping an employee's future career. The company also benefits from increased commitment and retention of staff as a result of this program, as well as improved inclusivity and diversity.

5. Boeing

Employees: 50,000
Headquarters: Chicago, IL

Boeing implements rotational mentorship programs which team early-career employees with an executive level or senior management mentor. The programs run for two to four years and allows employees to experience various departments including engineering, business, IT or HR. The purpose is to build a relationship between new and established staff members in order to guide employees and help them establish both short and long-term career goals. Specific programs include the Business Career Foundation Program and the Business Skills Rotation Program, both designed for recent college graduates.

6. Liberty Mutual

Industry: Insurance
Employees: 50,000
Headquarters: Boston, MA

Liberty Mutual provides new graduates and early-career employees with mentorship opportunities in partnership with senior managers. The aim is to guide employees' work assignments, provide leadership training and coaching. Individual programs include the Corporate Development Program, a two-year program involving interactions with senior management.

7. KPMG US

Industry: Financial services
Employees: 34,000+
Headquarters: New York, NY

A CPA Training and Mentorship Program is offered by KPMG US which connects successful candidates to a peer support community, a coach and a CPA program manager, which assists with navigating and the CPA training and exams process. As stated by one employee, the program provides "phenomenal" support as mentee are surrounded by mentors and colleagues who have previously been through the whole CPA process.

Conclusion

In closing, we have provided information regarding the career mentorship programs offered by large (more than 25,000 employees) US-based companies. The companies focused on include General Electric (GE), Deloitte, Caterpillar, KPMG US and Intel.
Part
02
of two
Part
02

Career Mentorship Program Cost

In the United States, the total training expenditure (includes coaching and mentorship, instructor-led classroom training, e-learning, informal peer-to-peer learning, and others) in 2017 hit $93.6 billion, while the estimated total spending on mentorship programs from various U.S. companies is $8.90 billion. For the purpose of this research, 'career mentorship program' is also referenced as 'corporate or employee mentorship' or 'workplace mentoring/coaching programs and training'.

CAREER MENTORSHIP PROGRAM COSTS

According to a joint study released by Litmos and Brandon Hall Group Research Team in 2016, the actual budget sizes for training "vary widely and depend on numerous factors, the most influential being the sheer size of the organization." The average training budget annually per company size is as per below:

Large (10,000+ employees) = $13 million/company
Mid-size (1000-9999 employees) = $3.7 million/company
Small (under 1000 employees) = $290K/company

According to the report, 58% of these companies spend "more than $1,000 per learner on training for senior leadership—compared to just 39% for high-potentials and 32% for mid-level management." While instructor-led classroom training tops the training cost in terms of use, coaching and/or mentoring is "seen as more effective." The corporate coaching/mentoring has a use of 2.48 (based on five-point rating scale), where a score of 5 denotes 75% of total training and a score of 1 is 0% of total training. By using interpolation, 2.48 score is equivalent to 37.2% of total training cost or usage:

(75%*2.48)/5 = 37.2%

Using the 37.2% as a basis for calculating mentoring programs cost per company, we can estimate the average overall mentoring program cost per company size as below:

Large companies (10,000+ employees)
= $13 million*37.2%
= $4.8 million per company

Mid-size companies (1000-9999 employees)
= $3.7 million*37.2%
= $1.4 million per company

Small companies (under 1000 employees)
= $290K*37.2%
= $107,880 per company

According to Mentorloop estimates, a company will spend about $625 per month for every 50 employees put on mentorship programs. That's about $13 per employee per month or $156 per employee annually.

MENTORSHIP PROGRAM SPENDING IN THE UNITED STATES

According to a report released by The Atlantic, about 70% of Fortune 500 companies (large companies) have adopted mentorship programs in their organizations, while about a quarter (25%) of smaller companies have some type of mentorship program.

From the latest report of Census Bureau (released 2018 but latest data is 2015), there are a totals of 1,018 firms that have more than 10,000 employees or an equivalent of 35,524,317 total workforce. The number of companies with employees of 1000 to 9999 is 8,762 with a total employment of 22,944,835. Companies with under 1000 employees (100 to 999) is 89,479 and the total employee counts at 17,503,402.

From the given statistics above and assuming that the large companies with 10,000+ employees carry the same trend as for Fortune 500 companies and the mid-size and small companies carry the 25% mark, we were able to estimate the mentorship programs spending in the United States. Earlier, we have already identified the coaching/mentoring average cost per company according to company size;

Large companies (10,000+ employees) spending on mentorship programs:

= 1,018 * 70% = 712.6 (companies that have mentorship programs)

= 712.6 * $4.8 million
= $3.42 billion (1)

Mid-size companies (1000-9999 employees) spending on mentorship programs:

= 8,762 * 25% = 2,190.5 (companies that have mentorship programs)

= 2,190.5 * $1.4 million
= $3.07 billion (2)

Small companies (under 1000 employees) spending on mentorship programs:

= 89,479*25% = 22,369.75 (companies that have mentorship programs)

= 22,369.75* $107,880
= $2.41 billion (3)

Estimated total U.S. spending for career mentorship programs:
= (1) + (2) + (3)
= $3.42 billion + $3.07 billion + $2.41 billion
= $8.90 billion

If the total corporate training spending in the U.S. was $93.6 billion in 2017, this means that about 9.50% of these expenditures was spent for mentorship programs.

CONCLUSION

In summary, the estimated expenditure for career mentorship programs in the United States is $8.90 billion annually. The estimated cost of mentorship program per employee is $13 per month or about $156 per year. A large company that adopts mentorship programs would spend an average of $4.8 million annually, $1.4 million for a mid-size company and about $107,880 for a small company.
Sources
Sources