Professional Networking And Its Impact On Career

KEY FINDINGS1. Networking is the most effective way to secure professional positions. Forty percent of studyrespondents identified their current positions through either an existing network or the referral of acolleague or friend.ExecuNet’s Executive Job Market Intelligence Report 2008 supports these findings;respondents to the ExecuNet study reported that they found their current positions by: Networking70% Responding to job postings16% Posting résumé to database/maintaining online profile9% Researching target companies/cold calling3% Broadcast résumé campaigns2%"There's been a surge in all these online networking services, but 37 percent ofexecutives never or rarely use them and another 40 percent only use them sometimes .Technology may help you identify target contacts or organize connections, but thehuman touch prevails." ‐ Dave Opton, ExecuNet CEO and Founder2. Respondents understand that networking is a valuable discipline with the ability to yield tangiblereturns with respect to income. Fifty‐eight percent of respondents believe a person skilled atnetworking could see a “significant, substantial or dramatic” impact on income—even up to a 100‐percent increase.3. At odds with the prevailing wisdom that the value of a professional network is tied to size, mostrespondents cited depth of relationship as being most strongly correlated to network value. A sub‐segment of respondents believe a connection alone is meaningless unless it can be leveraged in abeneficial way.4. LinkedIn is, by far, the undisputed mindshare winner of online networking management tools. Sixty‐five percent of participants, in unsolicited responses to an open‐ended question, cited LinkedIn asthe tool they use most often for networking. Among respondents, LinkedIn is seven times morepopular than its nearest contender, Monster, cited by nine percent.5. Most respondents believe they could improve their networking skills in all areas. Areas in need ofthe greatest improvement: adding new contacts and getting meaningful introductions to keycontacts.6. Although respondents view networking as a core competence, they feel universities andcorporations are lacking when it comes to providing tools for networking or networking skilldevelopment. Fifty‐eight percent of respondents believe a graduate‐level course in networkingwould be beneficial, very beneficial or invaluable. Although respondents were graduates ofPepperdine University, many had experience in undergraduate or graduate education at otherinstitutions.7 Professional Networking and Career Advancement ReportUpwardly Mobile, Inc. 2009

7. The data reveals a correlation between high‐achieving “elite professionals,” those with annualsalaries exceeding 200,000, and the value placed on networking. Elite professionals more so thanother respondents cited networking as important to their careers. They reported engaging morefrequently in networking, being more proactive in creating and maintaining networks, andleveraging networks to a greater extent in job searches. This demographic also self‐reported asuperior networking ability.We further segmented the elite‐professional demographic to identify individuals who had attained alevel of VP, CxO or above: the “elite networkers.” In post‐study, personal conversations, weinterviewed members of this group to identify whether they shared a common set of beliefs, habitsand skills related to networking. Their comments, noted throughout this report, further reinforce akey study finding: the most successful people, those with the highest earnings and in positions ofbusiness leadership, have superior networking skills. We also identified distinct habits, skills andpractices among elite networkers. Elite networking habits: Elite networkers are proactive in their networking efforts. To elitenetworkers, networking is a habit and lifestyle rather than a tool to be used only when needed,such as during a job search. Elite networking skills: Elite networkers are equipped with, and are therefore more likely to use,advanced networking skills such as maintaining contact and evolving contacts into importantrelationships, as well as identifying appropriate industry mentors and building mentorrelationships. Elite career advancement: Elite networkers leverage their networks to a larger degree than doother professionals; they also rely less on job sites during job searches. Conversely, networkersof the non‐elite variety rely less on professional networks and more on online resources and jobboards.“Networking allows me to stay in touch with the professional ecosystem in amore casual way. If you’re not managing your network, you're naive.” – EliteNetworker“I had been working for a number of years as an internal consultant at Coopers& Lybrand when I made the change to external. There was a dramaticawakening as to the importance of networking. I realized my networking wasgoing to build my career and make me successful.” – Elite Networker,VP/Owner, Management Consulting Firm Elite investment in networking: Because elite networkers believe more strongly in a correlationbetween networking and career advancement, elite networkers invest more time in networkingthan do other study respondents. They set aside specific times to network, undertake tasksspecifically designated as networking, and regularly attend events favorable to networking.However, elite networkers do not measure their investment in networking with discrete events8 Professional Networking and Career Advancement ReportUpwardly Mobile, Inc. 2009

and tasks; instead, everywhere they go, in everything they do and with everyone they meet,elite networkers integrate networking into their day‐to‐day lives.“It's a philosophy.” – Elite NetworkerThe data and opinions from these two elite segments, the elite professional and the elite networker,appear throughout this report. You may quickly identify this information by the following keys: vanceThe green dollar‐sign key illustrates high earnings; it points to data about oropinions from elite professionals, those earning more than 200,000 annually.The blue arrow key indicates upward mobility; it points to data about oropinions from elite networkers, those earning more than 200,000 annuallyand holding positions of VP, CxO and higher.9 Professional Networking and Career Advancement ReportUpwardly Mobile, Inc. 2009

STUDY DEMOGRAPHICSQuestion: What is your age category?Survey respondents are, predominantly, in mid‐ to late‐career stages. The two largest age categories:32 to 45 years (43 percent) and 46 to 60 years (36 percent). Only 10 percent of respondents are underthe age of 31. Twelve percent are over 60.* Numbers in the chart are rounded up. Totals are slightly over 100 percent.Question: What is your annual compensation range?Survey respondents earn substantially more income than the national average. According to the U.S.Census Bureau’s August 2007 report on current population and consumer income, the average U.S.household income was 48,201 in 2006. Thirty‐nine percent of this study’s respondents earn from 100,000 to 200,000 annually; seventeen percent earn more than 200,000. Thirteen percent of studyrespondents earn from 75,000 to 90,000 annually; eleven percent earn from 90,000 to 100,000.Only 10 percent of study respondents earn less than 60,000. Another 10 percent earn from 60,000 to 75,000 annually. Seventeen percent of study respondents are elite professionals, earning more than 200,000 annually.10 Professional Networking and Career Advancement ReportUpwardly Mobile, Inc. 2009

Question: What is your current/was your last job title?The majority of respondents hold leadership roles. Sixty‐three percent are executives or inmanagement. Twenty‐eight percent hold professional positions. Five percent are C‐level executives;three percent are business owners.11 Professional Networking and Career Advancement ReportUpwardly Mobile, Inc. 2009

Question: What is your level of employment?Seventy‐six percent of respondents work full time. Only one percent of respondents work part time.Eight percent each reported themselves as contractors or unemployed. Seven percent are retired.12 Professional Networking and Career Advancement ReportUpwardly Mobile, Inc. 2009

DETAILED FINDINGSSection 1: Role of Job Sites, Networking & Other Tools in Career AdvancementQuestion: Through which avenue did you find your current or most recent job?When asked how they found their current positions, 40 percent of respondents said by leveragingrelationships—either by identifying opportunities through networks or by a referral from a colleagueor friend. This is more than double the next largest category: using recruiters. Sixteen percent tappedonline advertisements or job postings; only five percent leveraged print postings and other offline ads.Question: To what degree have the following approaches impacted your ability to identifyand secure jobs or internal promotions in the past?Respondents were asked to rank the following seven options on a scale of one to five, with onerepresenting “no impact” and five representing “extreme impact”: My professional network (referrals from friends, colleagues and mentors)Industry recruitersJob sites (Monster.com, CareerBuilder.com, theLadders.com, etc.)University sites (corporate alumni site, university alumni site, etc.)External, company job sitesPublications (industry journals, magazines, newspaper)Industry events and associationsRespondents reported their networks as the most impactful tool with an average ranking of 3.76;recruiters came in a distant second with 2.53.13 Professional Networking and Career Advancement ReportUpwardly Mobile, Inc. 2009

This data, further diced by various demographic criteria, indicates that mid‐to‐late and higher‐incomecareer professionals rely more heavily on networking for career advancement than do their younger,lower‐income counterparts.Fifty‐six percent—more than half—of those 60 years and older said job sites had no impact on theircareers. This is significant when compared to all other age groups in which less than 40 percent feltlikewise. Forty‐three percent of those over 60 said company Web sites had no impact, compared toless than a third of those in other age groups. vanceMost elite professionals said job sites have had no impact on their careeradvancement. Fifty‐seven percent of elite professionals reported that job sites hadno impact on their career advancement, while less than 35 percent of those in thenon‐elite group felt job sites had no impact.Elite networker reports using a network to accelerate the job search andsave time.“I recently went through a job search using only people in my networkfor introductions. It took me 90 days to secure my next job – that’s quickfor the VP level, compared with a colleague whose search took sixmonths. My network clearly took me to the assignment. The match wasquicker, more personal and it saved me time.”– Jane Stampe, VP, Private Equity/Venture Capital Firm, 1B Fund14 Professional Networking and Career Advancement ReportUpwardly Mobile, Inc. 2009

Question: If you were looking for a new professional opportunity or job right now, whatwould be your first step(s)?When asked in an open‐ended question which would be the first step in their career‐search process,respondents showed a further penchant for leveraging networks. Forty‐six percent said their first stepwould be to reach out to friends and colleagues via networking. An additional 11 percent said their firststep would be to perform personal research and make contacts—another form of networking.Ten percent said they would reach out to a recruiter as a first step. Eleven percent said they wouldleverage a job board. In addition, those reporting their first step as “online” indicated that they meantreviewing job boards or searching online. Elite professionals are more likely to credit recruiters with having an extremeimpact on career advancement.Although contacting a recruiter does not represent “the first step” for 90 percent of all studyparticipants, elite professionals are more likely than their non‐elite counterparts to credit recruiters withpositively impacting their career advancement. When asked how various approaches impacted theirability to identify and secure jobs or internal promotions (see Chart 6: Perceived Impact of Specific JobSearch Methods), 10 percent of those earning more than 200,000 annually, and six percent of thoseearning from 100,000 to 200,000, felt recruiters had an extreme impact. During participantinterviews, elite networkers also identified top recruiters as either members of their networks or part oftheir research process.15 Professional Networking and Career Advancement ReportUpwardly Mobile, Inc. 2009

Elite networkers report networking as enabling access to pre‐qualified resources that give them “an edge.”va“Networking is a great way to access a pre‐qualified talent pool; it’s like I already hadthencinitial interview.” – Elite Networkere“I network for publicity; I blog and write, too. I want people to know who I am.Networking is, most importantly, about access to resources. I noticed other execs alwayshad a virtual team they could call on. They always found the right resource, and it gavethem an edge . Adding people to your network is like building a friendship: you have todedicate some time and effort to it.” – Elite Networker, CFO, Startup“I network to stay connected to the business community and identify potential work.Business development is constant for me, and I found that the best way to develop newbusiness is through referrals. Another reason is to maintain an awareness of what'sgoing on in the industry. Yet another is to stay connected with colleagues.” – EliteNetworker, VP“Give away your time, talent, effort and treasure, and you will gain something else.”– Elite Networker, SVPQuestion: If you were asked to quantify the value of your professional network, pick thesingle most important factor.Respondents were asked to identify which of six variables most determines the value of their networks:1.2.3.4.5.6.Willingness to recommendDepth of personal relationshipFrequency of communicationFrequency of contactPosition or level of influence of those in your networkProfessional opportunities generated by your networkDespite the current trend among established professional networking tools and sites to acknowledgeand honor users based on network size, professionals do not feel size is what brings value to networks.By 33 percentage points, depth of personal relationship trumped number of overallcontacts/connections. Relationship depth also scored significantly higher—by 20 percentage points—than the willingness of a contact to recommend.16 Professional Networking and Career Advancement ReportUpwardly Mobile, Inc. 2009

17 Professional Networking and Career Advancement ReportUpwardly Mobile, Inc. 2009

Section 2: Professional Networking Sites & ResourcesQuestion: Which Web site, either public or private, do you visit most frequently to find,connect with and manage your professional network?When asked in an open‐ended question which Web sites—public or private—they visit most often tomanage their professional networks, the majority of respondents—65 percent—cited LinkedIn.Respondents also mentioned non‐networking sites such as The Ladders and CareerBuilder, two jobsearch sites that are expanding their focus slightly to include, in terms of job search, networking andpersonal branding advice.Question: Rate the following Web sites and services for helping you manage yourprofessional network.Respondents were asked to rate five networking Web sites based on how well those sites helpprofessionals manage their networks and relationships. The sites provided: Plaxo, Spoke, LinkedIn,MySpace and Facebook. Not every respondent was familiar with each site; many were unfamiliar withSpoke, Plaxo and even Facebook.18 Professional Networking and Career Advancement ReportUpwardly Mobile, Inc. 2009

Table 1: Lack of Familiarity with Specific Networking Sites by AgeRespondents ranked known sites on a scale of one to five, with five being best. LinkedIn, the site mostfamiliar to respondents, scored highest with an average ranking of 4.0. MySpace scored lowest in itsability to help manage a network, with an average ranking of 1.9. Although Plaxo scored higher thanMySpace with a 2.8, the respondent group was also smaller: most—396 participants—were unfamiliarwith Plaxo.19 Professional Networking and Career Advancement ReportUpwardly Mobile, Inc. 2009

Question: Does your most recent employer provide an internal/corporate resource for moreeffective professional networking? If so, please briefly describe how one would use it.Many respondents reported working for mid‐ and large‐sized companies. Yet few mentioned employersas a resource that enables connections with colleagues. When asked if their companies provide internalresources to assist in the development of networks, the vast majority of respondents—80 percent—saidno.Twenty percent of respondents said their companies do provide networking resources. Those mostcommonly noted: events, informal company lunches, sponsored and paid trips to industry networkingconferences, intranets and internal networks, online job boards, and sponsored memberships inprofessional associations.20 Professional Networking and Career Advancement ReportUpwardly Mobile, Inc. 2009

Section 3: Professional Networking as a SkillQuestion: How would you rate yourself at the ability to:1. Maintain ongoing contact with key network members2. Proactively build relationships with mentors and advisors3. Identify, research and add new connections to your network4. Get meaningful introductions to key contacts important to your career success5. Proactively create connections within your network6. Evolve relationships from “contacts” into close connectionsProfessionals vary in their ability to build, nurture, manage and expand their networks. Surveyrespondents were asked to assess their skills in six areas using a five‐point scale, with one representing“very poor” and five representing “highly skilled.”Most respondents believe there is room for improvement in all areas and do not indicate much variationamong skill levels. They feel more adept at maintaining their existing networks—specifically maintainingongoing contact with key network members (average ranking 2.84) versus expanding their networks—specifically adding new connections (average ranking 2.54) and getting meaningful introductions to keycontacts (average ranking 2.56).21 Professional Networking and Career Advancement ReportUpwardly Mobile, Inc. 2009

Career stage also does notsignificantlyimpacthowrespondents perceive theirnetworking skill. There is verylittle variation in perceptions ofnetworking skills and theability to network effectivelyamong those in early‐to‐midcareer and those in later careerstages. Minor variations, notstatistically significant, appearwithin three skills sets:identifyingnewcontacts,creating additions and evolvingcontacts. Elite professionals perceive themselves as being more adept than do the non‐elite inevery skill category.We further analyzed perceived skills by salary level. This analysis shows that eliteprofessionals, those earning more than 200,000 annually, score themselves higher in every category ascompared to the non‐elite group. Elite professionals perceive themselves as having better netw

networking, you very likely answered “yes” to those questions. This is why the study results so surprised us. We learned that, while most recognize the value inherent in networking, few actually network as a practical way to stave off dips, increase earnings and accelerate career advancement.