7 Reasons Why Networking Is Essential

by Fronetics | Oct 11, 2016 | Blog, Strategy, Talent

Networking can do more than help you find your next job opportunity; it can make you smarter, happier, and more financially stable.

Kathryn Minshew, founder and CEO of The Muse and The Daily Muse, began a piece for the Harvard Business Blog Network with this sage advice: “Network Your Face Off.” The truth and value of this statement cannot be underestimated.

Here are seven reasons why networking is essential and why connections matter.

1) The larger the network the larger the salary.

A recent study of 6,000 executives in over 3,000 firms found that the more connections an employee has, the greater the salary. Specifically, the study found that a 50% increase in network size accompanies a 3.8% increase in salary with respect to the average.

2) Networks beget jobs.

A survey conducted by The Adler Group found that 46% of active candidates and 49% of passive candidates found employment thanks to networking. Similarly, a study conducted by Banque de France and the University of Toulouse noted that half of all jobs in the United States are filled through personal contacts. ABC News cites an even higher number — according to ABC News, 80% of jobs are landed through networking.

3) Wider networks can lead to better paid jobs.

Research conducted by Federal Reserve Bank of St. Louis economist David Wiczer found that employees who found jobs through individuals within their network got paid, on average, 6% more than employees who found their jobs through direct contact with a firm.

4) Networks provide security.

People who are well-connected are more likely to stay in their jobs longer and have shorter periods of unemployment than people who are not well connected.

5) Networks bring opportunities.

The opportunities networks can bring include: partnerships, invitations to events, introductions, and invitations to give talks and presentations. In short networks bring opportunities that benefit and feed your career, professional development, and personal interests.

6) Networks make you smarter.

Knowing what is happening in your field and industry is vital. When you have a strong network you are more likely to be “in the know” than those who do not have a strong and active network.

7) Networks make you happy.

Minshew writes: “Networks are powerful, and when done right leave you surrounded by a core of individuals who are all rooting for your success and happy to help you.” So true.

Networking is essential. Get out there and build your network.

Related posts:

Hate Networking? Here’s How to Get Over It

by Fronetics | Sep 1, 2016 | Blog, Strategy, Talent

Try these four networking tips to stop feeling guilty about developing relationships to advance professional goals.

Does networking make you feel dirty? Research published in Administrative Science Quarterly confirms you are not alone. The authors suggest that acting in self-interest in pursuit of our career goals can affect our sense of morality.

But, as we know, professional connections are essential to advancing your career, pursuing new opportunities, and earning new business. But how can we get past our distaste for networking?

An aversion to networking can be overcome, according to research by Tiziana Casciaro, associate professor at the University of Toronto’s Rotman School of Management; Francesca Gino, professor at Harvard Business School; and Maryam Kouchaki, assistant professor at Kellogg School of Management, Northwestern University. The team identified four strategies for learning to love networking, and published their findings in a recent Harvard Business Review article.

1) Focus on learning

People who approach networking as a necessary evil do it less often and consequently underperform in certain aspects of their jobs. Instead of viewing the next work outing as a chore, shift your mindset to focus on the possible positive outcomes — like gaining knowledge or skills that will help you do your job better.

2) Identify common interests

How do your interests and goals align with the people you meet? People establish the longest-lasting connections when working together on tasks that require contributions from both parties. When you identify mutual interests or objectives with networking contacts, your relationship is more likely to be authentic and to stand the test of time.

3) Think broadly about what you can give

When you don’t have an obvious mutual interest, try offering some kind of value to the relationship. Even junior-level employees, who don’t have company stature or connections to extend, have more networking capital than they may realize. Less tangible things — such as gratitude, recognition, and enhanced reputation — can be highly valuable, the authors suggest.

4) Find a higher purpose

Rather than focusing on the personal benefits, consider the collective value of forming professional connections. Will building relationships help your clients? Will more visibility in professional circles or at industry events enhance your company’s reputation? Framing networking in terms of a larger goal can make the activity more palatable, even helping you to see it as a beneficial opportunity.