ROI Tool User's GuideFormal Mentoring ROI Spreadsheet Tool Users Guide

Concept Behind the ROI Worksheet: This tool illustrates savings to organizations based on the research-supported relationship between reduced turnover and mentoring. The worksheet has four main sections: Mentoring Return on Investment (ROI) Analysis, Mentoring Program Costs, Regretted Loss Turnover Costs, and Additional Mentoring Benefits. The example provided in this spreadsheet shows the ROI of Executive-level mentors formally mentoring Manager-level or Director-level mentees. It also assumes that this is the start-up year or cycle of the formal mentoring program.Using This Customizable Tool:On the following tabs, cells shaded in gray show sample values and can be adjusted, allowing you to tailor this spreadsheet to GEs parameters. Cells not shaded in grey may contain formulas or linked formulas that will automatically update totals based on the values you allocate in the corresponding grey shaded cells. The light blue section shading highlights the estimated mentoring program costs. The yellow section shading highlights estimated regretted loss turnover costs (both with mentoring and without). The green section shading highlights the resulting ROI estimate. The purple section shading shows the additional benefits of mentoring, or, conversely, the missed opportunities of no mentoring program, that aren't as easily translated into rupees but that are highly valued outcomes of mentoring. You can translate these additional benefits into dollar savings (simply replace the $ with an actual amount), if appropriate for your organization, and that dollar amount will automatically be added into the calculated ROI on the Mentoring ROI Analysis tab via a linked formula.Or you could take portions of this sample tool and adjust or build upon them to calculate your ROI in other ways, as you see fit.Worksheet Section Notes: The notes below provide further context for specific areas of the sample tool.Mentoring ROI AnalysisoThe Mentoring ROI Analysis tab shows concrete savings (ROI), taking into account the mentoring program costs versus the reduced regretted loss costs for those who are mentored. The costs for those not mentored is shown as well to maintain an apples to apples comparison.oThe Total Concrete Savings of the Mentoring Program-ROI (see cell E10) takes the mentoring program costs (E6), adds the regretted loss costs of those who are mentored (see cell E7), and compares that number to the cost of regretted losses for those NOT being mentored (see cell D7), showing a savings of $521,000 during the inaugural year, or cycle, of mentoring.Mentoring Program Costs oThis section compiles and calculates the costs associated with setting up and running the mentoring program and includes three main sub-sections:oMentor Program Coordinator Costs The example provided shows the costs related to mentoring 1000 employees (D5). This sub-section also includes estimated costs associated with using an Organizational Development practitioner in the design or set-up of the program and using an off-the-shelf mentoring how-to product. (If your organization is using just one or none of these supports, enter zero for the unused support.)oMentee Costs lists mentee costsoMentor Costs this sub-section includes a mentor/mentee ratio (D31). In the example provided, this ratio is listed as 2, meaning that there are 2 mentees for every mentor.Regretted Loss Turnover CostsoThis section displays the regretted loss turnover costs (costs related to those who leave that the organization would like to keep). For this example, we compare 1000 employees who are enrolled in the mentoring program to a control group of 1000 employees in the same organization who are not being mentored (matched on characteristics such as level, function, etc.). This set-up provides an appropriate comparison and indicates the difference mentoring makes in lowering costs related to regretted losses compared to those incurred without mentoring.oAlso shown in this section is the Fraction of Attrition Rate as Regretted Losses (C10 & D10). This is a percentage estimation of the number of people who leave that would be considered regretted losses (often also considered voluntary turnover). If you already know this information (essentially - the number of voluntary turnovers) and have those raw numbers available you can alter the spreadsheet to simply add in those numbers for Regretted Losses (at C11 & D11). So in this example, we assume that 50% of 100 people would be regretted losses without mentoring (=50 people) where as only 25% of 50 people would be regretted losses with mentoring (=13 people). Note: reason the fraction of attrition as regretted losses is lower in the 'mentoring' column vs. the 'without mentoring' column is because we assume that even after someone has been mentored and they leave, this person may not be a good fit for the organization for reasons beyond the organizations control (e.g., they wanted a career change, etc.).oCost per regretted loss is based on the salary rate per hour of the employee. In our example we assume a sample salary of $135,200 for a Manager or Director-level employee (C12) for a rate per hour of $65 (listed on mentoring program costs tab at D27). Additional Mentoring BenefitsoIn addition to the straightforward dollar savings listed above, this section lists some of the added benefits associated with mentoring. When using this tool, organizations - if appropriate - can translate these into hard dollar amounts, the total of which will then be added to the corresponding line item on the Mentoring ROI Analysis worksheet. On the Additional Benefits tab, each of these items are already included in a formula to calculate the Total Added Return of Benefits at the bottom - the zero listed there will change accordingly once you add data. Also, this benefit total is already linked to the Mentoring ROI Analysis Tab and will be automatically added to the overall ROI calculation. In our example, we highlight these as added benefits with mentoring or missed opportunities without formal mentoring in place. 2010 CatalystConfidential, not intended for public reproduction or distribution.

Mentoring ROI AnalysisCatalyst Formal Mentoring ROI Spreadsheet Tool Sample Formal Mentoring ROI Analysis Illustrating Savings Based on Retention of Employees Through Mentoring

NOTES: This spreadsheet tool and embedded example show the savings based on the research-supported relationship between reduced turnover (regretted losses) and mentoring. The analysis includes a control groupemployees without mentoringto isolate mentoring's impact on outcomes. Items in grey shading can be adjusted and tailored to specific organizations.

ROI CalculationWithout MentoringWith MentoringWithout MentoringWith MentoringMentoring Program Cost0$4,549,0000$4,549,000Regretted Loss Turnover Cost$6,760,000$1,690,000$6,760,000$1,690,000Total Concrete Costs $6,760,000$6,239,000Additional Mentoring Benefits (which your organization can translate into hard dollars)00Total Concrete Savings with Mentoring ProgramROI0.0ERROR:#REF!0.0$521,000 2010 CatalystConfidential, not intended for public reproduction or distribution.

Mentoring Program CostsCatalyst Formal Mentoring ROI Spreadsheet ToolMentoring Program Costs

NOTES: INR+A23 amounts are typically in dollars per hour of employees' time. Costs are for one "cycle" of mentoring (i.e., if you have a year long program, this will represent one year's cost) and * denotes a lower cost year over year if the program is continued.# Mentees in program1000Mentoring Program Coordinator Costs (part-time position in this example)Set-up and organizing programoTime spent creating a roadmap for managing the program*, finding/choosing mentees, recruiting/choosing mentors*, establishing goals and objectives for program and those involved, matching mentees with mentors, designing and creating feedback survey* (includes all time spent on communication as well)Hours/year1040Training Salary rate/hour$40.00oDesign and set-up of training*, train mentees & mentorsPeople1Maintenance, throughout single mentoring cycleoPeriodic check-ins with mentees and mentorsWrapping-up programoFinal meetings with mentees and mentorsoAdministering, analyzing, and distributing mentee/mentor feedback (includes time spent on communications and updating mentoring scorecard(s))Cost$41,600Fixed costsoDollars per hour of consultant's or Organizational Development practitioner's time, if usingHours40Salary rate/hour$60.00People1Cost$2,400oCost of off-the-shelf mentoring product* (e.g., pre-packaged materials), if usingCost$10,000Mentee CostsoTraining, time with mentor and communicating with mentor (creating goals, all meetings to discuss topics), filling out program feedback, dropout ('sunk') costs NOTE: Time based on Catalyst's Mentoring Diversity and Inclusion (D&I) practices; average time of three and a half hours of training for mentee, one hour for mentors, and meeting for one hour/month for one yearTraining hours3.5Organization hours7.5Mentee-mentor contact hours12Total23Salary rate/hour (based on annual $135K/year at Manager or Director- level)$65.00Total mentees1000Cost$1,495,000Mentor CostsMentee / Mentor ratio2oTraining, time with mentee and communications (creating goals, all meetings to discuss topics), filling out program feedback, dropout ('sunk') costsTraining hours1Mentee-mentor contact hours24Total25Salary rate/hour (based on annual $500K/year at Senior Executive- level)$240.00Total mentors500Cost$3,000,000Total Cost of Mentoring Program = sum of all calculated costs$4,549,000 2010 CatalystConfidential, not intended for public reproduction or distribution.

Regretted Loss Turnover CostsCatalyst Formal Mentoring ROI Spreadsheet ToolRegretted Loss Turnover Costs

NOTES: If you already know your regretted losses in numbers of employees for these two groups, you can alter the spreadsheet by simply entering that data into cells C11 and D11.Without MentoringWith MentoringDollar Amount (typically in dollars per hour of employees' time)Employees1,0001,000

Average Annual Attrition Rate 10%5%Attrition10050Fraction of Attrition Rate as Regretted Losses or Voluntary Attrition50%25%Regretted Losses (number of employees)5013Average Salary of Regretted Loss Employee (Sample salary at Manager or Director level)$135,200$135,200Increase Retention of Valuable Employees/Lower Costs of Regretted Loss Turnover (Studies show this to be anywhere from 50% of employees' annual salary to 250% for higher-level and more skilled jobs1we use 100% as a more conservative number for higher-level jobs)100%100%Increase Retention of Valuable Employees/Lower Costs of Regretted Loss Turnover (Studies show this to be anywhere from 50% of employees' annual salary to 250% for higher-level and more skilled jobs1we use 100% as a more conservative number for higher-level jobs)oReduced regretted loss costs (estimated losses, based on exit interview, on what mentoring would have done for employee)oCost of training lost employee (in dollars paid to employee for this time) oCost in time taken to source, recruit, and hire new employee (for all those involved in the process: Human Resources (HR), Manager, Vice President, etc.)oCost in time taken to train new employee (orientation, job duties, certification periods, etc.) (in dollars paid to employee for this time)oCost in productivity lost if no interim, dedicated replacement of employeeoCost in productivity lost if another employee must split his/her time performing job duties of the vacated position while still performing duties of his/her own position

HR and Talent & Development Department Employees oCost in time it took to source, recruit, and hire the lost employee oCost of training the lost employee (e.g., in lost HR employee salary for training this employee)Cost per Regretted Loss$135,200$135,200Total Cost of Regretted Losses$6,760,000$1,690,0001 See Sarah Dinolfo and Julie S. Nugent, Making Mentoring Work (Catalyst, 2010) for resources and references. 2010 CatalystConfidential, not intended for public reproduction or distribution.

Additional Mentoring Benefits Catalyst Formal Mentoring ROI Spreadsheet ToolAdditional Mentoring Benefits

NOTES: The below benefits2 may be translated by individual organizations into suitable hard dollar amounts, as organizations deem appropriate, to further illustrate the positive effects of formal mentoring and mentoring ROI. If there are no suitable ways to translate these into hard dollar amounts, organizations still need to think strategically about them and consider how they add competitive advantage. Without MentoringWith MentoringMISSED OPPORTUNITIESADDED BENEFITSBenefits as evidenced through performance or employee feedback/survey ratings: $oIncrease in job satisfaction (due to increased engagement; if promoted, increased salary or higher title) increase in number and pace of promotions)oDecrease in stress and absenteeism (those with mentors vs. those without)oIncrease in skills and productivity with diverse employee base - better able to permeate marketplaces, etc. oIncrease in exposure to and decrease in bias against those who are different - increased support for Diversity and InclusionoIncrease in knowledge transfer or organizational cultural normsoIncreased retention (increase in the number of continued relationships and mentees becoming mentors)oIncrease in reports that mentoring supports "wanted" culture of the organization (e.g., performance culture, mentoring culture, relationship-based culture, accountability with shared responsibility for development, etc.) oIncrease in representation of diverse groups in pipeline Total Added Return of Above Benefits 02 See Sarah Dinolfo and Julie S. Nugent, Making Mentoring Work (Catalyst, 2010) for resources and references. 2010 CatalystConfidential, not intended for public reproduction or distribution.