Understanding The Value of Networking

It’s all too common to hear that it’s who you know, not what you know. But today, this is no longer just an old adage — the likelihood of finding work through an existing connection is growing as we continue to expand our professional and personal networks. Although work can be found through any number of channels, it’s important that students and clients understand the real value of networking. For practitioners, this advice may also be a welcome refresher.

LinkedIn recently compiled a list of industries that are most likely to hire from their employee networks. Coming in at number one was computer games, where 28.3 per cent of employees already had a connection with someone at the organisation, followed by computer and network security (27.8 per cent), and venture capital and private equity (27.3 per cent). Rounding out the top 10 industries were political organisations, wireless, management consulting, defence and space, computer software, motion pictures and film, and computer hardware.

At the other end of the spectrum, the industries that rely least on employer connections include restaurants, where only 7.1 per cent of those hired had a connection with someone at the organisation, package and freight delivery (7.3 per cent) and medical practice (7.9 per cent). On average, 16 per cent of employees were hired through existing networks.

But what do these results tell us — aside from what we might already know? In high-turnover industries, such as hospitality and retail, employers are not as reliant on hiring from their employee networks. In highly specialised or technical-based industries — like the computing and IT industry, which features prominently in the top 10 — networking can play a huge role in the hiring process, as staff are likely to know people with the required skills through past work or study endeavours.

For students and clients, it’s crucial to understand the true and long-term value of networking. No matter the industry or stage within the career or education lifecycle, personal and professional networks are invaluable. Benefits may not be immediately obvious — for students, especially — but future opportunities are well worth considering.

LinkedIn tips

Create a detailed profile and ensure it is up to date with new positions and achievements at all times. Even when you are not actively seeking opportunities, an online presence is important.

Use LinkedIn to solidify connections made through work, school, tertiary study or industry events. Avoid connecting with industry peers with whom you do not have a personal or work-related connection. LinkedIn is all about extending existing networks via the online space.

Reach out to connections for recommendations and referrals, assistance with job hunting and advice about your industry.

Get involved in the broader community, joining online groups or industry organisations to keep up to date with new opportunities.

Remember that networking works both ways, so be prepared to engage and provide assistance to others.

See Industries where your network matters more than you think for more information.

By Julie Street