UNIT IV EMPLOYEE COMPENSATION 9

Compensation plan – Reward – Motivation – Career Development - Mentor – Protege

relationships.

a. Compensation plan

A compensation plan is a payment package designed to attract and retain

employees. A basic compensation package consists solely of a salary or wages. A
more comprehensive compensation package could include additional benefits such
as bonuses, perks, commission, health insurance, or retirement investments.
Compensation plans involve offering fair and competitive payments that
simultaneously align with the company budget and promote business success.

What are the different types of compensation?

It’s critical to build your compensation plan according to your budget and
resources. This is especially important when structuring a competitive
compensation program with direct and indirect compensation components. Let’s
unpack the differences between the two.

Direct compensation

Direct compensation refers to the financial payments given to people in exchange

for time worked or results obtained. Examples of direct compensation include
salaries, bonuses, and equity.

 Salary. Salaries are the bedrock of your company’s compensation plan. They can
align with local costs of labor or reflect national pay rates for similar roles. We
recommend keeping geography, job responsibilities, cost of living, and external
market data in mind when calculating salaries.
 Bonuses. Bonuses are additional compensation often used to reward team
members for high performance. When calculating bonuses, it’s useful to consider
the following three questions: Who is eligible for a bonus? Which targets should
they hit to earn a bonus? What should our payment structure look like?
 Equity. Equity compensation offers people a stake, or partial ownership, in the
company. This benefits an organization by incentivizing talented members of the
team to remain with the company. It also encourages high performance—if the
company succeeds, everyone succeeds.

Indirect compensation

To keep pace with an ever-evolving work landscape, many companies have

adopted holistic, people-driven strategies to improve their company culture and
attract and retain talent. Competitive salaries are rarely enough anymore.

To tackle the “Great Resignation,” many companies now offer a variety of indirect
compensation benefits and development opportunities. Indirect compensation
varies from company to company, and often includes:

 Medical insurance
 Dental and vision coverage
 Retirement benefits
 Wellness benefits (e.g., gym memberships)
 Educational incentives
 Mental health services (e.g., therapy or counseling)
 Volunteer opportunities
 Flexible spending accounts (FSA)
 Hybrid working arrangements
 Paid time off (PTO)
 Disability insurance (DI)
 Paid holidays
 Childcare initiatives
 Relocation stipends or housing options
 Reimbursement for work-from-home costs
 Commuter benefits

Why should HR leaders care about compensation plans?

Compensation packages that adequately reward people for their hard work can
drive business profit. An effective compensation plan:

 Illustrates company integrity and transparency

 Assists in attracting and retaining top talent
 Boosts employee motivation and loyalty
 Reduces turnover and hiring expenses

How can you create and implement a competitive compensation plan?

HR professionals can incorporate these practices to develop a compensation plan

that attracts talent and boosts retention:

 Do the research. HR professionals should build a fair compensation plan based on

external market analysis and internal company data. Through benchmarking with
similar organizations, HR can determine how to create an appealing payment
package. Satisfying employee expectations gives the employer a competitive edge
in recruiting and retaining talent.
 Design a compensation philosophy. HR leaders should outline the company’s
underlying approach towards compensation. Outlining the purpose of the
compensation plan places the compensation program in context, promoting
alignment with objectives and company values. The written philosophy usually
includes crucial factors such as a pay-for-performance strategy, a method for the
establishment, maintenance, and management, and the compensation framework.
 Explain the compensation plan to employees. Communicating the components
of the compensation plan to personnel demonstrates integrity and nurtures trust in
the employer. When people understand the breakdown of their payment plan, they
can feel comfortable and confident investing their full efforts into their work.
 Draft a straightforward employment contract. The compensation plan’s terms
and conditions should be simple and easy to understand, both for the employer and
employee. A clear employment contract promotes respectful employee-employer
relations while also helping avoid disagreements and legal misconduct. During the
hiring process, HR leaders should ensure that both parties acknowledge the
payment terms.
 Approach each position holistically. Examine each job and its different
components: What skills and educational levels does the job require? What are the
job conditions? How does each job compare to others in value? Analyzing each
position in relation to other roles can provide HR professionals with a broad
perspective and deep understanding of each job’s overall worth.

How can you ensure equity, fairness, legality and competitiveness?

Part of developing a compensation plan is ensuring it’s fair for all employees. This
pertains to gender, culture, race and ethnicity, as well as to the skill sets and
experience new team members bring to your company.

Before you unveil your compensation plan, address the following questions:

 Are the programs in your compensation policy legally compliant? Be

mindful of labor laws, including state laws (which may include PTO or
vacation regulations) and federal laws (such as the Affordable Care Act).
 Is the overall program fair to all employees?
 Do employees perceive the overall program as fair? In this case, perception
is reality.
 Is the overall program fiscally sound? Can you maintain the benefit offerings
even if profits dip for a quarter or two?
 Can your organization effectively communicate the overall program to
employees?
 Are the programs fair, competitive and in line with your overall
compensation policies?
  Is the compensation policy competitive? Will it help your organization
attract and retain top talent in your industry?

What are the steps in compensation planning?

1. Define or review your compensation philosophy

A compensation philosophy provides direction and clarity for making

compensation decisions within your company. It is the foundation of your
approach to total compensation and will serve as the base of your compensation
plan.

Compensation philosophy gives you a framework to come back to as you make

updates later down the road. Whether you already have a philosophy or you’re
making one from scratch, make sure it aligns with your organization’s culture, size,
and resources.

2. Do your industry/market research

Developing a strategic compensation plan is complex, but it shouldn’t be

overwhelming. HR will start on the right foot by researching and analyzing salaries
and compensation in the same industry for similar jobs. This is also known as
salary benchmarking. There are two primary ways your team can go about this:

 Do the research yourself with resources like Payscale, LinkedIn Salary and
Glassdoor, The U.S. Bureau of Labor Statistics, and information on
competitors’ job postings. Add all the relevant information in a separate
document so you can come back to it later for further analysis.
  You can also hire a third party to perform market analysis on your
organization’s behalf. For example, companies such as Deloitte and PwC
typically have big data sets that include international and local salaries and
compensation information. Having a third party provide you with this
information will save your team time. It will also give you more accurate
compensation data than free tools.

3. Analyze your internal compensation data

You will also need to gather data on your existing compensation structure to ensure
it is still competitive. Some companies have compensation analysis tools that can
organize this data for you, but it’s not necessary. Instead, your team can start using
a spreadsheet and manually take information out of your HRIS.

It may also be wise to conduct a pay equity analysis to make sure staff with the
same job aren’t getting paid significantly differently. For example, suppose you
recently hired someone with a higher salary for the same role you already have. In
that case, you should plan for getting the existing employees to the same level to
prevent turnover.

4. Align your planning with your business goals

Your compensation planning should support your organizational goals. As a

company, you have a specific mission and vision, and you’ll only be able to
achieve it by attracting, motivating, and retaining the right employees.
With that in mind, total compensation is one of the highest expenses you’ll have as
an organization. That’s why you must create a compensation package with your
resources in mind.

Strategic compensation planning is a complex process that not all Human

Resources professionals might feel confident carrying out. You and your
department will benefit from gaining the knowledge and skills needed for
compensation planning that drives business impact. Getting a Compensation &
Benefits certification for HR professionals is a great place to start.

5. Start creating salary ranges and grades

There are two parts to creating a salary structure in your organization. The first is
by creating a salary range. This helps employers manage their compensation
expenses and guarantee that pay is equal among employees. Employers must have
logical explanations for why they pay their staff a certain amount. Determining
salary ranges helps achieve that. Start with the mission-critical roles or positions
where you have many employees. If you already have salary ranges in place,
review them to determine what improvements your team can make.

Within the salary range, you’ll want to add salary grades. A salary grade scale is a
pay format where employees are placed within a pay level based on their
experiences. For example, you hire two HR managers with the same title and
responsibilities, but one candidate has five years more experience. You would pay
the more experienced candidate more, and salary grades help classify why you’d
pay someone with the same job title more than another.

Job evaluation, “the systematic process of determining the relative value of

different jobs in an organization”, is an indispensable tool for creating fair salary
ranges.

6. Manage your compensation budget

According to the US Bureau of Labor Statistics, compensation-related costs are on

average 70.8% of the employer’s expenses while also being your greatest asset. As
you can imagine, managing your compensation budget is an integral part of your
company’s financial well-being. Compensation planning will help you accurately
estimate your compensation budget. From that point, you can see if you are
overspending or underspending in certain areas.

If you have a small team, you can manually track the salaries and compensation in
an Excel sheet. However, many dedicated compensation management tools will
not only track your employees’ salaries, bonuses, and benefits, but they will also
be able to deliver real-time data in an easy-to-use dashboard.

7. Monitor the planning execution and make adjustments

Once you’ve done all this hard work to have a fantastic compensation strategy in
place, you’ll want to create a framework to support continuous monitoring and
spotting opportunities for improvement. Make sure to get feedback from company
stakeholders such as managers, employees, or even applicants so that you know
you can offer a competitive total compensation package.

b.Reward

What is a Reward?
While compensation is purely transactional, the reward is
an incentive. A reward is a benefit or a prize for achieving
something.

Unlike compensation, rewards are more dependent on the

person receiving them. A reward is only effective if it is
perceived as valuable by the recipient.

Also, since rewards are an addition to the usual

compensation, their cost should be proportional to the
recipient's contribution and within the company's budget.
INTRINSIC AND EXTRINSIC

When discussing rewards, it is essential to distinguish

between intrinsic and extrinsic.

Intrinsic rewards refer to the positive emotions one feels

after doing something they enjoy or that brings them
value. Some intrinsic rewards include feeling proud,
appreciated, and recognized for one's work.

Employee appreciation is critical to a company's growth

and success, as employees who feel valued and recognized
are less likely to be looking for another job.

A company does not have to spend on intrinsic rewards as

they are internally motivated and subjective to each
employee. That being said, HR needs to consider the
intrinsic rewards that come with roles and positions, as
even the best-compensated employees can be unsatisfied
with their roles if they lack intrinsic rewards.

Meanwhile, extrinsic rewards refer to anything a company

provides an employee for their achievement, which may be
tangible like a cash bonus or a device, or intangible like a
promotion or time off.
FINANCIAL AND NON-FINANCIAL

Rewards can also be financial or non-financial. Financial

rewards are similar to payouts and equity compensation;
hence, they are typically awarded as additional
compensation.

Meanwhile, non-financial rewards are similar to benefits.

Employees may be awarded additional paid leaves,
purchase discounts, or flexible work arrangements that
may make a job more attractive. This may work best with
great pay programs and the assistance of salary managers .
PERFORMANCE OR MERIT-BASED

Last, it's important to consider how much reward is for

awarding an employee. The most common way to provide
performance or merit-based rewards is through piece-rate
pay plans. An example is commissions given to employees
who exceed a quota or performance ceiling or bonuses
awarded to employees who successfully perform special
projects or tasks.

Rewards and Recognition Ideas For

Motivating Employees
1. Gift of Gratitude

This is probably one of the most suggested actions that you'll come across to show
your gratitude to your employees. Everybody craves some appreciation, and the
impact of a verbal or handwritten "Thank You" is unparalleled to any other form.
So, make sure you don't miss out on saying thank you to your deserving
employees.

2. Recognition Delayed is Recognition Denied

Your employees are digital natives and they are used to experiencing instant results
in all spheres of their lives. They want to be recognized and they want to be
recognized right away.

3. Peer to Peer Recognition

Recognition from peers holds unique value. Sometimes peers are more aware of
the work of their co-workers than managers/ in-charges. They are the ones that
work alongside, and they have a more impersonal relation with each other. They
often see qualities that managers overlook.
Healthy peer-peer recognition is a key to make your organization come to life. It
can be done quickly by conducting surveys among employees and recognizing the
ones with maximum votes.

4. Gift of Acceptance

Employee recognition is all about emotionally connecting with your employees.

A great yet simple gift that you can give others is the gift of acceptance.
Practices like proving Business cards to your employees, putting your staff on your
company’s websites make your employees feel accepted by the organization.

5. Recognizing the Creative Minds with Creativity

There are employees who consistently bring new ideas to the table or add a dab of
creativity to whatever work they do. These are generally the ones who are truly
passionate about the job they do and are always trying to give their best. Let them
know that you appreciate their efforts. Make it a point to acknowledge them from
time to time.

6. Promoting Wellness at the Workplace

Promoting wellness in the workplace is a step that can help an organization in

many ways.
You can reward employees with free or subsidized gym memberships for keeping
themselves healthy. Also, you must appreciate their health achievements to keep
them motivated and inspire others to take up a healthy lifestyle.

7. Primo Parking

If your workplace reserves prime parking spots for the executives, then it can be
used as an employee reward scheme too. You can use this reward scheme to
leverage employees to adopt environment-friendly commuting methods like
carpooling and so.

8. The Magic of Gift Cards

Gift cards are available for all sorts of products and services. From shopping to
traveling to dining. They are available for almost everything you can think for.
What makes gift cards unique and better than cash is that they ensure your
employees have a guilt-free spending. Because they are given gift cards and not
cash, they must take the opportunity of treating themselves rather than spending
the money on something more useful (one that doesn’t end up feeling like a
reward).

9. Recognize "Chasing Hobby"

Employees have their own likes or hobbies to keep themselves stress-free and
motivated outside their cubicles. These may include anything from cooking,
dancing, singing, painting, etc.
Giving your employees the chance to pursue their hobbies can be a great add-on to
your employee rewards and recognition program. This will let the employees stay
connected to their hobbies and also help them stay more focused at their jobs.

10. Welcome Suggestions

Employees love it when they are heard. They love to be included in the decision-
making process of the company they are working so hard for.
So, when you plan to make changes in the ongoing or upcoming projects, take your
employees’ suggestions. Your employees are the ones who deliver the result, so
it’s crucial to keep them in the loop at all times.
c.Motivation

What is employee motivation?

At the heart of employee performance lies motivation – the level of enthusiasm,

energy, commitment, and creativity that an employee brings to their role daily.

Top 10 ways to motivate employees

If you are looking for ways to motivate your employees at work, here are the five
simple ways of making it work:

1. Employee motivation surveys: Use an online survey software or platform

to conduct employee motivation surveys.
2. Employee satisfaction surveys: Employee satisfaction depends on a ton of
factors such as work environment, infrastructure, roles, responsibilities, etc.
Conducting employee satisfaction surveys will help Managers understand
dissatisfaction factors and act on them.
3. Recognization: Recognition helps create a healthy bond between the
employer and employees.
4. Focus on intrinsic rewards: Extrinsic rewards fade very quickly. Focus on
motivating your employees from within.
 5. Autonomy, not bureaucracy: Micromanagement is the worst thing you can
do as a manager. If you have hired people with certain skillset let them do
their job, be a facilitator, not a dictator.
6. Create an amazing work environment: Creating a good atmosphere will
motivate your staff.
7. Be a visionary: Lead with vision. Employees need to know their efforts are
driving something important. They need to know their destination and, more
importantly, the path that will take them there.
8. Act on soliciting ideas and suggestions: Now that you have conducted
surveys, you have received feedback from your employees. Ensure that the
ideas, suggestions, and grievances that they have put forth will look into and
addressed in a timely fashion.
9. Career-pathing: Having a career growth plan with clearly mentioned roles
and responsibilities is crucial to employees. Therefore, make sure that you
sit down with every employee and come up with a career plan that is
transparent and communicated clearly.
10.Provide flexibility: Not all employees are alike. Therefore, you should
allow some flexibility within reason, and your employees will be happy and
motivated.

5 ways to improve employee motivation

While employee feedback should guide your organization’s motivation strategy,

there are some core initiatives that will pay dividends across your company it
always pays to consider.

1. Focus on employee engagement

Employee engagement is closely connected to employee motivation. Engaged

employees are passionate about their job and are excited to work for your
organization. Just as with motivation, you can use tools like those described above
to get a real-time picture of engagement and then focus on the drivers that will
make the greatest impact at your company. These are likely to include improving
managerial relationships — managers account for around 70% of variance in
employee engagement scores — taking concrete steps to improve employee
wellness, and, of course, prioritizing employee recognition.
2. Build an impactful employee recognition program

Employee recognition encompasses all of the ways your team members are
thanked and rewarded for their work. It’s a core driver of employee motivation —
after all, if employees aren’t both told they’re appreciated and shown it in tangible
ways, why should they continue to give their all on a daily basis? That means any
effective recognition program needs to include both social and monetary
components. To start building a culture of recognition at your company, choose
an employee recognition company with a platform that’s easy to start using, lets all
team members say thank you in fun, engaging ways, and includes a points-based
rewards system backed by an incredible catalog.
3. Offer great incentives

Today’s employees expect incentives to go beyond typical offerings like retirement

benefits and health insurance. But don’t worry — offering perks that actually
excite employees doesn’t have to break the bank. They can come in many forms,
including bonuses, schedule and location flexibility, and paid time off. It’s
important to design an incentive program that aligns with both your team desires
and your company’s values.
4. Create a culture employees love being a part of

Organizational culture is the combination of values, expectations, and practices

that guide what your team does each day. If your company culture makes
employees feel like they belong, it’s much easier for them to become invested in
the success of your enterprise. And 65% of employees say culture is one of the
primary reasons they stay at their current jobs. A company culture employees want
to be a part of should include important elements like aligning with your company
values and fostering a feeling of belonging.
5. Empower employees to succeed
When an employee is empowered, they’re confident that their manager and your
organization as a whole has their back and will provide them with the support and
resources needed to succeed. Empowering employees starts by gathering input
from team members directly on what they need to succeed and what’s currently
holding them back. This enables your organization to go beyond simply giving
employees the resources their roles require to provide the exact forms of support
employees want. These may include retraining leaders who micromanage rather
than coach, upping your company’s professional development game, or
recalibrating work-life balance so team members actually have the time and energy
necessary to thrive.

d.Career Development

What Is Employee Career Development?

Employee career development is a structured and strategic process organizations
undertake to help employees enhance their skills, knowledge, and experiences to
achieve career goals. It is a comprehensive approach that includes coaching,
training, mentoring, and opportunities for advancement within the company.
Why Is Employee Career Development Important?
Employee career development promotes individual well-being and professional
growth while strengthening the organization’s performance, sustainability, and
competitive edge.

10 Proven Ways to Support Employee Career Development

1. Encourage your team to assess their skillset
Having a thorough understanding of the strengths an employee brings to a
company will heavily influence their career path. Certain positions are better suited
to workers with specific qualities, such as shift leaders and event coordinators who
need strong multitasking skills to succeed in their roles. Employers who are
familiar with their staff’s best traits can guide them to jobs requiring specific
talents that overlap with their abilities.
Giving the employee the opportunity to assess their skills may even reveal
strengths they were unaware they possessed and provide them with a better
understanding of and confidence in the areas they excel in. Highlighting what
qualities make team members an asset to your company will increase their self-
confidence and uncover new career opportunities they might not have considered
before. If the assessment brings attention to underdeveloped skills, then you can
work with the employee to improve their weaker traits as needed for their current
or future roles.
2. Promote training and development
A worker who is not given the opportunity to expand their abilities will never have
the chance to professionally develop over time. Training programs provide staff
members with the necessary education for becoming a valuable part of the
workplace by teaching them specialized skills and familiarizing them with the
duties of other positions in the company. Those who take and appreciate the
program may become more loyal to your organization.
Offering training, including reskilling and upskilling courses and cross-training, to
employees will lead to additional benefits for the company. Not only will
employees gain additional skills that will boost their own career growth, but in the
case of unforeseen events such as layoffs, you as an employer will more easily be
able to redeploy remaining employees for business continuity. You can also use the
programs to prepare high-potential employees for more senior positions rather than
risk hiring an unknown applicant who is unfamiliar with the company’s culture and
policies.
3. Mentorship programs
Businesses may set up mentorship programs to help new employees become
acquainted with their positions and the workplace by forming in-house connections
with experienced employees. Those who have worked in the company will be
familiar with the brand’s culture, values, and expectations for staff members,
which makes the mentor a perfect fit for answering questions and giving vital
advice to the trainee. Learning by example allows employees to better understand
their obligations in the workplace.
Those who consider transferring into a different department of an organization can
also benefit from participating in mentorship programs. Attending sessions with
the mentor will give the mentee an accurate impression of their desired role while
also providing them with first-hand experience. Businesses may ask their mentors
to submit an evaluation of the trainee to determine if they will be a suitable fit for
the position, and to gain insight into the worker’s skills.
4. Train managers
Managerial training programs can give talented entry-level workers an opportunity
to grow from within the company, which can lead to an increased desire to
maintain an excellent work ethic. Having the option to be trained for advanced
positions in the same corporation may even reduce the likelihood of employees
transitioning to a new career outside the brand. Those who are trained and
promoted from within the organization will already be familiar with the company’s
practices and culture, which helps the worker avoid unnecessary
misunderstandings.
Employers can customize training programs to help aspiring managers develop
crucial soft skills and talents that are specific to their brand, such as organizations
with an emphasis on quality customer service incorporating extra hospitality
courses into their programs. The history and mission of the corporation may be
reinforced during the training sessions to ensure the company’s future leaders
embody the core values that represent the brand.
5. Offer career coaching
There may be situations where employees find themselves unsure about how to
advance their career, whether it be due to a lack of direction for their future or a
desire to venture into a new functional area within your organization. Offering
career coaching can give your team members some needed professional guidance
to help them feel more fulfilled, confident, and invested in their careers. They can
do this by guiding the employee through self-discovery exercises and assessments
and working with them to develop a strategy to meet their professional goals.
Employees who create such job-related goals for themselves are also likely to stay
productive and motivated while working.
6. Empower employees to create a career development plan
Staying invested in the wellbeing of your staff members will contribute towards a
positive working environment and increased growth in your staff’s professional
abilities. Empowering employees to make their own career development plans is
also an effective way for companies to show people how the brand is interested in
the success of its staff, which may improve the organization’s reputation for both
employees and consumers.
Businesses can select from several forms of encouragement when promoting their
career counseling services to workers. Providing team members with readily
available resources such as webinars, career-related workshops, and links to
informational blogs will help them improve their knowledge of important
developmental topics. A company’s staff should also have convenient access to
career coaches in case employees desire professional assistance with their plans.
7. Identify and encourage unique skills
Learning the special traits of a worker can differentiate them from others in the
workforce when applying for future positions. Employees may even have prior
work experience that can be repurposed for new careers, like a former artist who
can use their talents to design logos for businesses. Encouraging people to take
pride in their unique abilities and apply their skills in different ways will lead to
more confident staff members, and should promote creative thinking in the
workplace.
8. Promote cross-functional projects
Encouraging employees to participate in cross-functional projects is an effective
way to broaden their skill set and expose them to different areas of the
organization. These projects require individuals to collaborate with colleagues
from other departments, promoting a deeper understanding of how various
functions contribute to the company’s success. This exposure enhances problem-
solving abilities, communication skills, and teamwork, which are vital for career
development. Cross-functional projects also provide opportunities for innovation
and creativity, as individuals from different backgrounds bring fresh perspectives
to the table. Additionally, participation in such projects can increase an employee’s
visibility within the organization, potentially leading to promotions or other career
opportunities with the company.
9. Provide networking opportunities
Networking is a fundamental aspect of career development. Internally, facilitating
networking opportunities can involve organizing events, seminars, or mentorship
programs that encourage interaction among employees. These interactions can lead
to cross-functional collaborations, learning from experienced colleagues, and
discovering internal career pathways. Externally, employees benefit from attending
industry conferences, joining professional associations, and engaging with peers on
social platforms. These connections can provide insights into industry trends and
even lead to mentorship or sponsorship from influential figures. Effective
networking enables individuals to stay updated in their field, expand their
knowledge, and create a supportive professional network that can be instrumental
in advancing their careers.
10. Offer technology and tools
Providing access to career development tools and resources is essential for helping
employees take charge of their career paths. Online learning platforms that include
courses, webinars, assessments, and more empower individuals to acquire new
skills and stay updated with industry trends. Career assessment tools and
development plans enable employees to set clear objectives, identify their strengths
and weaknesses, and create a roadmap for their professional growth. These
resources allow employees to take a proactive approach to their career
development and make informed decisions about their career trajectory. Moreover,
 access to technology and tools demonstrates an organization’s commitment to its
employees’ growth and development, fostering a culture of continuous learning
and improvement. By giving employees the means to expand their knowledge and
skills, organizations empower them to advance in their careers and contribute
effectively to the company’s success.

e.Mentor

Types of Mentoring in the

Workplace
1. Career Advancement Mentoring

Career mentoring is by far the most common mentoring program we see in the
workplace. This traditional one-to-one mentoring relationship can last 6-12
months.

How do companies benefit from career mentoring in the workplace?

To retain skilled employees and develop future leaders, it’s critical to understand
employee career objectives and align them with organizational goals. Mentoring
in organizations enables both career development and leadership development to
help employees gain new skills and feel engaged with co-workers and your
organization. By encouraging a learning culture through mentoring, companies
ensure that employees take an active role in spreading knowledge and best
practices throughout their organization. These factors all lead to happier employees
and better employee retention for a stronger, more effective organization.
With career mentoring, you can:
 Improve employee retention
 Enable employees to take ownership of their development
 Deliver cost-effective, scalable programs with constrained HR resources

How do employees benefit from this type of mentoring in the workplace?

Employees get the opportunity for learning and development, which can help
advance their careers and keep them from feeling stagnant in their roles. Offering a
formal career mentoring program is a tangible way to show employees that you’re
investing in their careers. The true ROI of mentoring can be seen in the retention,
advancement and satisfaction of employees. The collaborative nature of mentoring
develops employees and interpersonal links, while building opportunities for career
pathing. Essentially, employees sharpen their skills, gain new ones, and can form
friendships at work, all of which result in increased engagement.

2. Leadership Development Mentoring

High-potential mentoring connects rising stars with leaders, top performers, and
each other. This one-to-one mentorship nurtures a company’s leadership chain.

How do companies benefit from high-potential mentorship in the workplace?

High potentials are an incredibly valuable asset to any company, but they’re often
difficult to retain. With careful cultivation, companies can increase retention to
ensure they’ll be able to appoint suitable leaders at the top when needed, which is
crucial to the health and future of every organization. It’s imperative to engage
these rising stars while also exposing them to different areas of the business,
developing their leadership skills, and ensuring they’re learning what they need to
excel in prospective new roles. This results in improved engagement, faster time to
productivity and lower attrition costs.
With high-potential mentoring, you can:
 Improve retention of key contributors
 Deepen your leadership bench strength
 Provide critical career development experiences

How do employees benefit from this type of mentoring?

Mentoring high potentials rewards them with personal attention, guidance, and
professional development. This type of mentoring in the workplace enables high
potentials to learn faster and prepare to take on leadership positions sooner. This
type of personalized development is engaging for employees and provides tangible
proof that their employer is investing in their careers.

3. Diversity Mentoring

Diversity mentoring has grown in popularity for companies that want to attract and
retain top talent while becoming an employer of choice. This model pairs mentors
and mentees in a one-to-one mentorship aimed at engaging and developing specific
subsets of employees, and can last 6-12 months.

How do companies benefit from diversity mentoring in the workplace?

Cultivating an inclusive workplace culture where varied viewpoints are heard

fosters innovation and creativity that effect the bottom line. Research
from McKinsey & Company revealed that ethnically diverse and gender diverse
organizations are respectively 35% and 15% more likely to achieve financial
returns above average. Diversity mentoring not only helps organizations develop
and retain diverse talent, but it also helps build a robust community of diverse
talent for future needs. Offering a diversity mentoring program helps corporations
differentiate themselves from their competitors while providing long-term support
for their employees.
With diversity mentoring, you can:
 Improve diversity in leadership or specific functional disciplines
 Better attract and retain employees
 Connect diverse populations with each other to learn and share experiences

How do employees benefit from this type of mentoring?

Diversity mentoring in the workplace empowers a wide range of employees to

share their opinions, ideas, knowledge, experiences and mentoring topics in the
workplace and on a level playing field. Through diversity initiatives, employees
learn cultural awareness to create an inclusive workplace culture. Diversity
mentoring creates an environment of trust, belonging, understanding, support, and
encouragement for a diverse workforce. It gives employees an opportunity to voice
their concerns, overcome hurdles, and find solutions. As a result, it inspires
employees to perform to their highest ability.

4. Reverse Mentoring for Knowledge Sharing

Reverse mentoring is a modern twist on the traditional mentoring model. Reverse

mentoring partners an older, more experienced employee with a younger, less
experienced newcomer. Companies can implement reverse mentoring in a one-to-
one or group setting. The younger employee serves as the mentor, providing senior
members of the organization with up-to-date information on the latest business
technologies, technical skills, and workplace trends.

How do companies benefit from reverse mentorship in the workplace?

Reverse mentoring isn’t just an opportunity to engage and develop employees—it

creates bonds between senior leaders and rank-and-file employees. By breaking
down silos and connecting cross-generational employees, mentoring in the
workplace shares critical knowledge, creating a more informed and agile
workforce that functions smoothly.
With reverse mentoring you can:
 Enable knowledge sharing between baby boomers and millennials
 Deepen connections between employees and senior management
 Engage employees more fully across generations

How do employees benefit from this type of mentoring?

Reverse mentoring strengthens senior leaders and executive teams by giving them
insights younger generations (millennials and Gen Z), as well as the latest
technologies. In fact, according to a survey by PGi, 70% of non-millennials say
they are open to reverse mentoring. The benefits don’t end there. The younger
employee gains visibility into the macro-level management issues and perspectives
of the executive mentee. Reverse mentoring in the workplace can be an excellent
way to build inclusive workplaces, fostering a sense of belonging among
employees, while increasing engagement and retention.

5. Mentoring Circles for Collaborative Learning

A mentoring circle is a peer-to-peer type of mentoring that enables employees to

find peers who share common interests or learning objectives, and develop
together as a group. Each circle has an owner (an employee) who designates the
number of participants and sets expectations for how, when and why the circle will
meet. We recommend capping membership at 5-8 employees per circle.

How do companies benefit from mentoring circles in the workplace?

Thanks to Lean In, mentoring circles have become increasingly popular. It’s no
surprise why employers are adopting this model—since employees own and run
the circles, this type of program is fairly admin light. Mentoring circles promote
cross-departmental knowledge sharing, which expands the institutional knowledge
pool. The result? Improved innovation by connecting people with varying skillsets
who are interested in solving the same challenge.
With mentoring circles, you can:
 Build intra-organizational personal relationships
 Facilitate collaborative learning and knowledge sharing
 Drive career development by increasing employees’ functional expertise and
skillsets

How do employees benefit from this type of mentoring?

Employees get to connect with co-workers who have the same interests. This helps
create bonds between people who otherwise may not have interacted. And don’t
discount the impact of having friends at work – Gallup actually includes the
question “Do you have a best friend at work?” as part of their annual Q12
engagement questionnaire. Mentoring circles help employees find like-minded
peers at work, which helps foster a sense of belonging. Circles can also serve as an
extra layer of support for employees. Many organizations have circles setup for
specific employee populations, such as integrating veterans, elevating women in
STEM, retaining LGBTQ employees and so on.

f. Protege relationships.

What is protege relationship in HRM?

This document describes the characteristics of an effective mentor-protégé
relationship. It defines mentors as experienced individuals who advise and help
less experienced protégés. Mentors provide guidance, coaching, and support to
help protégés advance in their careers.

How to Succeed in a Mentor-Protégé Relationship in Customer Success

In order to develop a mentor-protégé relationship that will benefit everyone, you

can take some steps to ensure success. Setting some clear goals, intentions, and
protocols will ensure the relationship is valuable, and a positive experience for
both the mentor and protégé. For example, you can set designated times for regular
meetings, determine focuses of the mentorship, set expectations about feedback,
and be clear about desirable goals of the mentorship.
In order to maximize your mentor-protégé relationship, it can be helpful to
regularly reflect on the work being done, and evaluate the progress. This can be
useful for ensuring that you’re not only learning along the way, but also
developing a deep understanding of the Customer Success work being done, and
the reasons behind it. This will lead you to develop skills that you can repeat time
and time again, and also build upon.

Do’s and Don’ts of the Mentor-Protégé Relationship

 DO understand that the mentor-protégé relationship can be beneficial for

everyone involved, and is shown to lead to higher pay, increased likelihood
for promotions and higher employee retention rates.
 DON’T underestimate how much value you can obtain from learning from
an experienced Customer Success professional.
 DO see if your organization has a formal program, and if not, work to
develop your own mentorship.
 DON’T go into a mentorship without clear goals, intentions, and protocols,
to ensure success and maximum benefit for everyone.