When a company implements a mentorship program, there are several benefits to doing so. Productivity and employee engagement rises when everyone benefits from this type of program. In fact, 77% of companies that run one have stated the employee retention increased as a result. Here are a few ways that a mentorship program can benefit companies.

The job satisfaction of employees is crucial for a company’s stability. Having a mentor program to participate in makes them feel like they are valued by the company they work for. Of those employees who have worked with a mentor, 95% of them have stated that having a mentor inspires them to produce the best work they possibly can.

New employees often feel uncomfortable in the early days of working for a particular company. One way to avoid that obstacle is to assign an experienced employee to guide them through those days. Peer mentors are also effective in helping new employees feel like they are working in a supportive environment where they could thrive. In 2014, the results of a survey showed that 56% of new employees that worked with a peer mentor were more productive than those who didn’t.

Mentorship is also an effective way to mix older and younger employees. Many millennials are seeking a mentor to guide them when they start working for a company. This is partly because they believe that the older employees in the company won’t understand their motivations and ambitions. When mentors and mentees can work together, younger employees are encouraged to be themselves in the workplace.

One way mentor programs benefit companies is by ensuring information is shared across the board. The more employees can learn from the program, the more everyone benefits. Senior employees can lead the younger generations by imparting knowledge and wisdom o them. It helps the younger employees rise to a new level of maturity that, in turn, helps them perform their job better.

When senior employees teach those below them to do the job, companies can make a smoother transition when those senior employees retire. By the time they do, the younger employees are equipped to fill those roles instead. This is how companies grow and develop while still providing a positive work environment.