Mentorship, Culture, and Retention: Why Organisations Can’t Afford to Ignore It

Published on January 26, 2026

By Marianne Bremner. 

In a world where job-hopping is the norm and employee loyalty can feel increasingly fragile, organisations are asking how they can retain their best people. The answer might not be higher salaries or trendy perksbut mentorship.

When employees feel supported, connected, and invested in, they are far more likely to stay. A culture of mentorship signals to employees that their growth matters, and when growth is nurtured, retention follows. 

Why This Matters Now 

Employee turnover is costlynot just financially, but also in terms of knowledge loss, team disruption, and brand reputation. Studies estimate that the cost of replacing a single employee can be up to twice their annual salary. 

Research further shows that mentoring significantly improves retention. A Deloitte survey found that 81% of millennials expect to leave their employer within five years if they do not feel supported in their development. Conversely, retention rates are higher for mentees and mentors than for non-participants. For organisations seeking to build strong cultures in hybrid, competitive markets, mentoring is no longer optional, it’s strategic. 

The Psychology Behind It 

From a Business Psychology perspective, mentorship strengthens culture and retention through several mechanisms: 

  • Psychological Safety (Edmondson, 1999): Mentoring relationships create safe spaces where employees can ask questions, share struggles, and learn without fear of judgment. 

  • Social Exchange Theory (Blau, 1964): When Organisations invest in mentoring, employees feel a sense of reciprocity, increasing loyalty and commitment. 

  • Organisational Commitment (Meyer & Allen, 1991): Mentorship fosters emotional attachment (affective commitment) and a sense of belonging, reducing turnover intentions. 

  • Career Development (Kram, 1985): Mentoring provides both career-related functions (coaching, sponsorship) and psychosocial support (confidence, identity), which together drive long-term engagement. 

Business Psychology in Action 

The U.S. Army defines mentoring as a voluntary developmental relationship, independent of one’s position in the chain of command, intended to support personal and professional growthInstitutional guidance affirms that effective mentoring “improves individual performance, retention, morale, personal and professional development, and career progression” (U.S. Army, n.d., FM 6-22, para. 2-100). This underscores how mentoring contributes directly to strengthening loyalty and resilience among personnel.  

In the corporate world, Sun Microsystems conducted a study of over 1,000 employees and found that mentoring led to dramatically higher retention rates: retention was 72% for mentees and 69% for mentors, compared with just 49% for non-participants. Closer to home, organisations adopting mentoring as part of their inclusion and wellbeing strategies report not only improved retention but also stronger engagement, collaboration, and employer brand. 

Looking Ahead  

Retention isn’t just about keeping people longer, it’s about keeping them engaged, valued, and growing. A culture of mentorship does exactly that. The Association for Business Psychology’s self-driven mentorship programme, ABP ConneXt, is designed to strengthen both individual development and collective culture. By enabling members to form meaningful mentoring connections, ABP ConneXt can foster growth, inclusion, and long-term engagement across the profession.

About the Author 

Marianne Bremner is a Training Executive with Saville Assessment, with a deep passion for professional development and mentorship. Known for her collaborative spirit and entrepreneurial drive, Marianne has successfully led teams through innovative startup-style projects, including her leadership of the Arden University team that won the prestigious ABP Biz Psych Cup in 2025. As co-Lead of The Association for Business Psychology’s new mentorship initiative – ABP ConneXt – Marianne brings a wealth of experience, energy, and commitment to nurturing future talent in the field.  

References 

Blau, P. M. (1964). Exchange and power in social life. Wiley. 

Deloitte. (2016). The 2016 Deloitte millennial survey: Winning over the next generation of leaders. Deloitte University Press. 

U.S. Army. (n.d.). Fundamentals of Army leadership (FM 6-22). In Army Doctrine Publication 6-22 and associated Field Manuals. Retrieved from https://www.scribd.com/document/662341007/ARN36735-FM-6-22-000-WEB-1x 

Edmondson, A. (1999). Psychological safety and learning behavior in work teams. Administrative Science Quarterly, 44(2), 350–383. https://doi.org/10.2307/2666999 

Hegstad, C. D. (1999). Formal mentoring as a strategy for human resource development: A review of research. Human Resource Development Quarterly, 10(4), 383–390. https://doi.org/10.1002/hrdq.3920100408

Kram, K. E. (1985). Mentoring at work: Developmental relationships in organizational life. Scott, Foresman.

Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1(1), 61–89. https://doi.org/10.1016/1053-4822(91)90011-Z 

Society for Human Resource Management. (2017). Human capital benchmarking report. SHRM.