To Pay or Not To Pay: Exploring Compensation for Mentors

In this issue, we’re diving into a topic that sparks a lot of conversation: Should mentors be compensated? While it may feel controversial in some circles, I see our role at EnPoint as community builders—bringing people together to explore new ideas with open minds. 

When we work with organizations designing mentorship programs, we always start with this: What do your people need? What matters most to them? There’s no one-size-fits-all approach, but when programs are built around their participants, they’re set up for meaningful impact. 

This month’s feature unpacks the pros and cons of mentor compensation, shares examples, and offers considerations to help guide your own decision-making. What do you think should mentors be compensated? do you compensate your mentors? have you seen this work?

To Pay or Not To Pay: Exploring Compensation for Mentors

Mentorship programs are invaluable in the world of work. They connect experienced professionals with those just starting out, or less experienced (competent or confident) in a particular industry or sector, fostering growth and knowledge transfer. 

One of the questions we get asked when we’re guiding clients through designing a mentorship program: should mentors be compensated for their time and expertise? 

The idea of compensating mentors isn't new. Some programs offer small honorariums, while others rely solely on the intrinsic rewards of giving back.Below we explore the pros and cons of compensating mentors.

First things first let’s explore types of compensation you could consider:

• Monetary: Honorarium, Stipend, Performance-Based

• Professional credit: learning or professional development credits, points towards licensure or certifications 

• In-kind: Opportunities to highlight a mentor's work/ business, event or conference tickets, network expansion opportunities, charitable donation, etc. 

The Case for Compensation:

• Attracting Top Talent: Let's face it, time is valuable. Experienced professionals, often at the peak of their careers, have limited hours to spare. Offering competitive compensation can attract highly qualified mentors who might otherwise be unavailable.

• Boosting Engagement and Accountability: When mentorship programs are formalized, with proper training and preparation that likely would accompany any paid mentoring program, this can lead to increased commitment. It signals that the mentorship is valued and should be treated as a priority 1. 

• Driving Success: High-quality mentorship can be a game-changer. By providing access to seasoned advisors or experts, paid mentorship programs can contribute significantly to a mentee’s chances of success.

• Fostering Mentor Growth: Interestingly, research suggests a possible link between increased mentor and mentee growth when compensated. Compensation can be seen as an investment in the mentor's own professional development, potentially leading to even more effective guidance 2. 

 Potential Challenges:

• Intrinsic Motivation: Many mentors are driven by a genuine desire to help others and give back - either in the way someone else did for them or in the way they wish someone would have. . Introducing compensation adds a layer of complexity and potential bias that can work against  these intrinsic motivations, shifting the focus from altruism and objectivity to financial gain and bias.

• Defining Value: How do you determine appropriate compensation for mentorship? Creating a fair and transparent system for evaluating mentor contributions and setting payment scales can be complex. Performance-based compensation, while potentially beneficial, requires careful design to avoid unintended consequences 1.  It’s important to consider that this is easier to manage in certain environments - for example employers who can tie mentorship participation into existing HR leadership metrics.  What’s uniform in assessing compensation is to keep it focused on “value” or quality of impact NOT quantity of meetings for example.

• Financial Burden: For organizations or nonprofits with limited budgets, the added cost of compensating mentors could be a significant burden. Finding a balance between providing adequate compensation and ensuring the program's sustainability is crucial.

Finding the Right Balance:

The discussion around mentor compensation is nuanced. There's no one-size-fits-all answer. The ideal approach likely involves a combination of strategies that are tailored to the unique participants. While financial compensation can be a powerful motivator, it shouldn't overshadow the importance of intrinsic rewards that create repeat mentors. Exploring alternative incentives, such as recognition, networking opportunities, and access to exclusive resources, can also be valuable.

Ultimately, the goal is to create a sustainable and effective mentorship relationship that benefits both mentors and mentees. When we begin to shape a mentorship program for a client or partner, the first and most important thing we do is determine objectives. The objectives for the mentees and mentors, as well as the organization. This often clarifies a lot of the questions in the arguments outlined above. What will drive buy in, commitment and accountability within the program.  What are your thoughts? Share your perspectives in the comments below! 

Examples of Successful Paid and Volunteer Mentorship Programs: 

• Mayfield Fellows Program (Stanford University)The Mayfield Fellows Program (MFP) is a nine-month work/study initiative at Stanford University, designed to immerse a select cohort of students in the world of high-growth technology ventures. Established in 1996, MFP offers participants a comprehensive blend of academic instruction, practical experience, and mentorship. During the summer quarter, fellows engage in paid internships with emerging technology startups, where they are paired with senior-level mentors within their host organizations. This structure ensures personalized guidance and fosters professional growth, with the paid component underscoring the value placed on both the mentors' and mentees' time and expertise.

• Associated Designers of Canada (ADC)The Associated Designers of Canada (ADC) offers a national paid mentorship program tailored for emerging and mid-career designers in the performing arts. In this program, mentees apply by selecting a mentor and identifying a specific project to collaborate on, spanning from initial design discussions to the opening night. The nature of the working relationship is determined collaboratively between the mentor and mentee, based on the mentee’s learning objectives. This structure ensures that mentors are compensated for their time and expertise, highlighting the program's commitment to valuing professional contributions. 

References: 1. Heuer, C. (n.d.). Unlocking startup ecosystem potential: The case for compensated mentorship. LinkedIn. Retrieved December 21, 2024, from https://www.linkedin.com/pulse/unlocking-startup-ecosystem-potential-case-mentorship-chris-heuer-ot4hc/ 2. Mishra, D., Jain, S. K., & Chaudhary, H. (2016). Analysing the feasibility of financial rewards for mentors engaged in entrepreneurial mentoring. International Journal of Evidence-Based Coaching and Mentoring, 14(2), 135–152.