HR professionals play a crucial role in shaping company culture, employee engagement and leadership development. Yet, one often-overlooked tool that can significantly improve workplace performance and wellbeing is professional business mentoring.
Business mentoring is a professional relationship where an experienced businessperson (the mentor) offers guidance and support to an entrepreneur, business owner, or leader (the mentee) who seeks assistance. The business mentor combines coaching and mentoring techniques with proven business tools to share insights, help navigate challenges and offer strategies grounded in their own experience.
Research from the Association of Business Mentors (ABM) reveals that two-thirds of business leaders who have received mentoring report direct increases in their revenues and profits. But beyond financial success, mentoring is also proven to have a profound impact on leadership development, employee morale and overall workplace wellbeing.
A workforce-wide impact: Mentoring beyond leadership
While traditionally associated with business leaders and executives, mentoring is just as critical for employees at all levels. Forward-thinking organisations are now leveraging structured mentoring initiatives not only to develop leaders but to create a culture of learning and support throughout the workforce. Research indicates that employees who participate in mentoring programmes are 3.5 times more likely to be promoted and companies with strong career development initiatives see higher retention rates and increased productivity.
With this in mind, the UK Government must take action to support mentoring throughout a business, from senior leadership level to new junior staff and make it more widely accessible – not just for the business success, but for the broader health and productivity of the workforce.
The evidence: Business mentoring drives growth and wellbeing
In practice, professional mentoring offers more than just support and guidance – it’s a proven path to growth and resilience, enabling leaders and employees to solve problems and capitalise on opportunities with the confidence that comes from access to experienced mentors. In fact, our research found that 67% of business leaders who worked with professional mentors saw improvements in their performance and effectiveness in their role.
But beyond tangible leadership skills and financial gains, mentoring has also been shown to have a big impact on the mental health and wellbeing of leaders and individuals at all levels of an organisation.
The research found that seven in ten leaders felt the work they had undertaken with their mentor had directly improved their mental health and confidence and the same number said it had improved their work-life balance. When business owners, executives and employees have access to mentorship, they are better equipped to lead with clarity and empathy – ultimately fostering a healthier, more engaged workforce.
The positive effects of mentoring are undeniable, not just for business leaders but, crucially, for their teams as well, as those positive changes are passed through the business. HR professionals understand this trickle-down effect to shape company culture and influence employee retention and satisfaction. But unfortunately for many, business mentoring is not used as widely as it could be by British businesses.
The barriers: Why business mentoring is underutilised
Despite its benefits, many businesses, especially SMEs, struggle to access quality mentoring.
There is a distinct lack of awareness of business mentoring in the UK which often leads business leaders and their HR teams alike to turn to informal sources or rely on peer mentoring which can’t offer the level of expertise and qualification that a professional business mentor can. In fact, 34% of business leaders said that finding someone with professional business mentoring experience/qualifications was the main barrier they faced when seeking help. This suggests that demand for business mentors may be outstripping supply.
Whilst cost is often perceived to be a barrier to investing in professional business mentoring, it should be viewed as a strategic investment with clear, measurable benefits when implemented effectively. Despite this, SMEs frequently struggle to allocate budget for mentoring without financial support or incentives. However, businesses that do invest in structured mentoring initiatives – such as those delivered by the ABM – consistently see significant improvements in employee engagement, retention and overall business performance.
By better understanding the substantial benefits of mentoring and advocating for staff who would benefit from support, HR leaders can make the case for improved access to mentoring within their businesses’ budgets.
The solution: Government support for business mentoring
So, what can we do to strengthen UK businesses and improve workforce productivity? At the heart of it, the Government must take steps to integrate business mentoring into leadership and employee development initiatives.
A national business mentoring strategy would ensure that business owners and HR professionals have access to high-quality mentoring resources. To address the shortage of qualified mentors, investment in training and accreditation through bodies like the ABM should be prioritised, equipping mentors with the right experience and methodologies.
Alongside this, financial support for SMEs would help remove cost barriers and make mentoring more accessible to smaller businesses. Additionally, mentoring should be embedded within HR-led leadership development initiatives, employee wellbeing programmes and Government-backed enterprise schemes to maximise its impact.
The HR perspective: A strategic workforce investment
Most importantly, support for business mentoring begins in each individual business and, for HR professionals, that means thinking beyond leadership. Business mentoring isn’t just about growing leaders – it’s about creating a resilient, high-performing workforce at all levels. When leaders, managers and employees are well-supported, employee engagement and retention improve. Workplace wellbeing initiatives often focus on surface-level perks, but investing in strong mentorship programmes has a lasting impact on company culture and business success.
In our work at the Association of Business Mentors, we often hear how mentoring transforms business leaders and the teams they lead. But to unlock the full potential of mentoring, we need systemic change to support mentoring throughout the workforce. The Government must step up and ensure that every business leader has access to the support they need to grow – both for the benefit of their business and the people they employ.
We also need people in businesses to champion mentoring. HR professionals are perfectly placed to do this as they are at the forefront of shaping leadership and workplace culture. By advocating for mentoring, they can play a key role in ensuring that business leaders feel supported at work, employees remain engaged and workplace wellbeing is prioritised. In turn, this not only helps businesses retain talent and encourage innovation but also drives productivity, resilience and long-term growth, ensuring that UK businesses thrive and succeed.
