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Corporate Social Networking

Increasing the density of connections to powerbusiness performance

Connectivity Powers Business

S c Mi s R s rch-B s Whi P p r



Corporate Social Networ ing: SelectMinds Benchmar ing Study

Proprietary and Confdential

taBle o ContentS

Introduction: How Connected Are You? ..............................................................................................................................................................

I. Corporate Social Networ ing ..........................................................................................................................................................................

What Is Corporate Social Networ ing? .....................................................................................................................................................

Why Corporate Social Networ ing? .........................................................................................................................................................

The History o Corporate Social Networ ing ..........................................................................................................................................

1. The War or Talent Begins Again: Corporate Social Networ ing Answers ................................................................................

. Networ ing A fnity Groups to Solve Business Challenges .......................................................................................................

Reported Benefts Associated with Corporate Social Networ ing ............................................................................................................6

Expected Contributions o Corporate Social Networ ing ........................................................................................................................

1. New Business Contribution ..........................................................................................................................................................

. Productivity Contribution ............................................................................................................................................................

3. Retention Contribution ................................................................................................................................................................

The Debate: Secure Versus Open Corporate Social Networ s ...................................................................................................................

Most Popular A fnity Groups or Corporate Social Networ ing ................ ................ ................. ................. ................ ................. .........

Using Corporate Social Networ ing or Relational Onboarding ..............................................................................................................

II. Using Corporate Social Networ s to Rehire Former Employees ....................................................................................................................

Rehires Hit the Ground Running ................................................................................................................................................................

Hiring Costs Associated with Rehires Versus All Experienced Hires ........................................................................................................

Impact on the Hiring Error Rate: Focus on First Year Turnover ................................................................................................................

Savings Associated with Reduction in the Recruiting Error Rate or First Year Turnover ................ ................. ................ ................. ....... 1

Long-term Retention o Rehires and Associated Savings .........................................................................................................................

Productivity Implications o Rehires: Time to Contribution .....................................................................................................................

Productivity Implications o Rehires: Star Per ormers ............................................................................................................................

III. Re erral Programs and their Impact on Hiring ..............................................................................................................................................

IV. New Business Implications o Corporate Social Networ ing ................. ................ ................. ................. ................ ................. ................. ...

Conclusion ............... ................. ................ ................. ................. ................ ................. ................. ................ ................. ................. ................ ......

About SelectMinds ...............................................................................................................................................................................................



Corporate Social Networ ing: SelectMinds Benchmar ing Study 3


IntRoduCtIon: HoW ConneCted aRe You?

Corporate Social Networking (CSN) holds great promise ororganizations, enhancing business per ormance at a time whenknowledge is the key not just to succeed, but to compete. Withshorter product li ecycles and even more compressed in ormationli e-cycles, a growing shortage o knowledge workers, and global,

ragmented work orces, companies are nding it imperative to createthe kind o knowledge maps that Corporate Social Networkingenables. Increasing the density o connections within and amongconstituencies important to organizations does just that. SelectMindsclients are nding that increasing the connectivity o speci c

populations within their organizations can help to increase theengagement o their employees and the speed with which knowledgeis shared and business is conducted. This increased connectivity helpsthem compete when in ormation becomes obsolete as quickly as it isgenerated—by directly linking employees with each other and otherconstituencies such as corporate alumni, customers and partners. Ine ect, the more connected your organization becomes, the better it

will per orm.

In this paper we begin by looking at the need or and history o Corporate Social Networking, and then move on to a discussion o the current state o Corporate Social Networking, including results

rom a SelectMinds survey o its clients that both reveals the nancial

contributions o Corporate Social Networking and identi es themost important a nity groups to network. The research-based paperconcludes with a look at the bene ts o creating networks that crossthe boundaries o the enterprise—in this case through CorporateSocial Networks or ormer employees, or alumni.





I . CoRPoRate SoCIal netWoRkIng

Wh Is C rp r S ci n w r i ?

Online social networking increases the density o connections amongindividuals to drive business value. A Corporate Social Network isa collection o social networks, among which employees and othercorporate constituents may interact through their own, individualpro les. These pro les must be portable and able to collect andamalgamate in ormation rom that individual’s interactions andknowledge sharing among all o his or her associated corporatenetworks. These networks are secure and private, open only to thoseconstituencies identi ed by the enterprise. The connections osteredthrough Corporate Social Networks are anchored in a nity andbene cial to individual members through the in ormation they areable to obtain and share, creating knowledge capital that becomesattached to their pro le and is visible to other network members.Corporate Social Networks are used primarily to build trustand share knowledge on a peer to peer basis rather than throughdocuments subject to in ormation obsolescence. Network membersshare knowledge in real-time, in e ect creating a living corporateknowledge map within the network.

Why C rp r S ci n w r i ?

Work orce demographics and economic conditions have shi teddramatically during the past two decades. The baby boomersapproaching retirement age and the entrance o the more mobile andsel -directed Generations X and Y have orced changes in humancapital management strategies while we ace the current and growingshortage o knowledge workers. At the same time, the global economy has become knowledge and services oriented, making companiesreliant upon the contributions o individuals. Increasing levels o automation and in ormation fow have increased exponentially thespeed at which business is conducted. In ormation obsolescence isa key concern. More companies operate with globally ragmented

work orces. Companies that thrive in this environment–one in which

high value is placed on knowledge, work orces are globally dispersedand requirements or innovation are ever-growing—are nding waysto connect their people through Corporate Social Networking. Thesources o innovation, productivity and goodwill, people have becomethe enterprise’s most important asset.

Compounding these changes are additional human capital actors:the shortage o knowledge workers and high levels o worker mobility.

At the same time, new connectivity technologies are being adoptedby organizations based on their consumer proli eration; workers arebringing the technologies to the workplace and organizations arebeing orced to consider security, e ciency and data privacy issue

In response to these undamental changes, leading organizationsare al igning their talent management with business processes andenabling unprecedented connectivity and relationship developmentthrough new technologies including Web 2.0-based Corporate SociaNetworking solutions.

th His ry C rp r S ci n w r i

Corporate Social Networking has become a prominent part o business lexicon, resulting rom both the strong value that it bringsto organizations and public awareness o online networking romconsumer networks such as MySpace and Facebook.

Corporate Social Networking was pioneered by SelectMinds in 200 when it began delivering online, hosted networks to connect the

ormer employees, or alumni, o organizations with each other and with the organization, primarily or new business purposes. Early adopters o alumni network solutions included pro essional service

rms, rom nancial services to accounting and consulting rms, a well as a number o large law rms.

Former employees o services rms o ten “go in-house,” or work ormer customers. In this way they become able to re er business b

to their ormer employer. Others join partner organizations or, as insome cases with law rms, they go to other rms which may speciain di erent areas. Seeding this population with in ormation aboutheir alma-mater employer, such as new services, client successesand other business news, helped them to become better brandambassadors, speaking knowledgably about their ormer employer.

Services rms and a ew early adopter Global 1000 rms oundsigni cant value in linking their corporate alumni with eachother—and, in a breakthrough, with their ormer colleagues—theorganization’s current employees. In this manner organizationsbecame able to leverage ormer customer and employee relationshipas well as build new relationships based on continued personalconnections among employees and alumni. One client o SelectMina large accounting rm, tracked $180 million in new business in oneyear through corporate alumni connections.





1. tHe WaR oR talent BegInS agaIn: CoRPoR ateSoCIa l ne tWoRkIng anSWeRS

With resurgence in the war or talent, primarily or knowledge workers, early adopter rms and the broader Global 2000 beganlooking at alumni as a potential talent pool. SelectMinds beganto provide additional unctionality that would a llow or socialinteractions and job postings and applications within the nascentCorporate Social Networking solution, as well as unctionality that

would allow re errals o passive candidates.

At approximately the same time, in 2003, consumer social networks were launched (Friendster, MySpace), and combined “social eatures” which had their roots in instant messaging, orums and blogs, Web2.0 tools that had already penetrated some corporate communicationprograms. The connected generation—GenY—embraced socialnetworking wholeheartedly; it was another way to stay connected

with riends and amily as they went o to school or le t to enterthe workplace or the rst time. That same year, another consumersocial network emerged: LinkedIn targeted a di erent group o users,becoming a “pro essional networking tool or hiring managers, jobseekers and pro essional service providers.”

In the consumer space, as the saying goes, the rest is history.Corporate and third-party recruiters began using these consumersocial networks to search or passive job candidates, gain accessto them and develop relationships. Increasingly they ound thatsearching on a lumni o their corporations yielded excellent results.

Multiple studies quickly ound that re-hires would ramp much asterthan new, experienced hires; that they would tend to stay longer,in some cases twice as long; and that they were more likely to be orbecome “Star Per ormers.” As one SelectMinds client puts it, “Allo our rehires are ‘star per ormers.’ These individuals are knownquantities to us. We strive to bring back the best.”

Companies ound that consumer social networks could help therecruiting process, through search technology, but were not secureenough or ull network use within the enterprise. Companiesrequired secure, closed networks within which their relatedconstituents could learn about, communicate and create “community,”in the knowledge that their pro les and communications wereprivate—limited only to their network.

Other human resources bene ts emerged with the advent o CorporateSocial Networking, rom increasing the engagement o employeesby connecting them more closely with each other to acilitating

knowledge sharing and speeding innovation. The resulting increasein retention, new product launches and overall corporate knowledgesealed the business case or the value o Corporate Social Network

2. ne t WoRkIng a InI tY gRouPS to SolveBuSIneSS CHal lengeS

Today, Global 2000 organizations are looking at ways in whichincreasing the connectivity o a nity group members can speed tito market; increase employee satis action, productivity and retentiobreak down silos and spur innovation. External to the organization,companies are realizing that linking customers to each other and theorganization can serve to increase eelings o loyalty and long-term

partnership.

Connecting groups o employees and external constituencies whoshare an a nity helps to build “network e ect,” or the tipping poiat which the Corporate Social Network takes on a li e o its own.This occurs when enough members participate and add value to thenetwork, outside o the in ormation seeded by the organization.

Whether the a nity group is a global IT department that must work together on speci c projects or all o the women employees analumni o a large organization acing a shortage o knowledge wonetwork members will have points o a nity through which they wconnect and develop personal relationships, share challenges and wo

together more cohesively.To help solve speci c, common business challenges, SelectMinds prcon gures Corporate Social Networking solutions with best practicconnectivity and workfows, metrics and services to:

• Increase the retention o new hires by acilitating relationalonboarding

• Leverage intern investments

• Stem the hidden brain drain o women leaving the work orce

• Mine the corporate intelligence and drive o baby-boomer retirees

• Increase executive connectivity

• Reduce turnover o all employees• Hire star-per orming knowledge workers

• Grow new business

Increasing the density o connections within an organization tiesconstituencies more closely with each other and the organization toincrease engagement and overall knowledge sharing.





R p r B f s ass ci wi h C rp r S cin w r i

SelectMinds surveyed its client organizations to identi y theirperceptions o the types o bene ts associated with Corporate SocialNetworking. These companies, which range rom Global 2000companies to pro essional services rms, agreed that the ollowinggeneral bene ts would be realized through Corporate SocialNetworking:

• Enhanced internal branding with employees

• Better brand ambassadorship within the employee base (how theorganization is represented by its employees to their riends, amilies

and acquaintances)• Enhanced external branding with constituents involved in the

Corporate Social Network

• Enhanced corporate culture

• Enhanced productivity

• Increased employee retention

• Increased motivation

• Increased new business opportunities

• Increased goodwill

In addition, survey participants identi ed bene ts that were most

important or particular to their organization:

“I think, to a degree, it is broken down into li e-long, improved employee engagement.”

“We are looking at creating it as an exchange: You become part o the network as soon as you join the company.”

“We can let people build social networks with prospects, monitor those networks, and plan events or new business.”

“Providing access to the 70 percent o our employee base who are between 21 and 28 years old helps to make this connected generation eel empowered and a true part o the company.”

“There is a holistic beneft, in that a broader support network enriches peoples’ lives. For women and minorities, there are also myriad benefts that happen through networking: knowing they are not alone, etc.”

“Primarily, the Corporate Social Network underpins our key value, whichis respect or the individual.”

exp c C rib i s C rp r S ci n wSelectMinds’ client survey went ur ther to quanti y as a percentagincreases in three key areas: new business, productivity and employretention, which would be attributable to the increased connectivity Corporate Social Networking. On the whole, client companies agreethat signi cant increases could be achieved through Corporate SociNetworking at the enterprise level.

1. neW BuSIneSS ContRIButIon

SelectMinds customers agree that linking all employees togetherthrough Corporate Social Networking increases the likelihood o n

deal completions. The social networking unctionalities o queryinthe network, access to rst and second-degree contacts’ pro les andtheir speci c associations, personal network management, knowledsharing orums and other collaborative tools contribute to the abilitto share in ormation about prospective clients.

On average, SelectMinds client companies believe that CorporateSocial Networking contributes to an increase in new business o 11.percent. When viewed as a percentage o the year-over-year increasin revenue (as a proxy or new business), this can equate to tens o millions o dollars or most large organizations.

2. PRoduCtIvI tY ContRIButIonSelectMinds clients urther indicate their belie that increasingthe density o personal connections on an enterprise level resultsin signi cant increases in productivity. These arise throughhelping employees understand where centers o expertise reside inorganizations, connecting ar-fung employees to increase trust, andshortening the time to discover in ormation that is relevant to anemployee’s responsibilities.

On average, SelectMinds client companies believe that CorporateSocial Networking contributes to an increase in productivity o 10.33 percent.

3. Retent Ion ContRIButIonS

Employees who eel more connected with each other and theorganization are more engaged in their work, more satis ed withtheir jobs, and less likely to leave their current employer, accordingto SelectMinds client companies. Previous studies conductedby SelectMinds and Intellisurvey revealed that workers who elt





disconnected rom their colleagues were more likely to leave anorganization, and nearly one-quarter o respondents reported havingdone so at some point in their careers. Another recent study showedthat employees who had a riend at work were more likely to remain

with an organization and to be more productive and motivated duringtheir tenure.

On average, SelectMinds client companies believe that CorporateSocial networking contributes to an increase in retention o 8.83percent. Considering the cost o turnover as twice the employee’ssalary, such increases in retention can have a signi cant cost savings.These savings increase urther when one considers the potentialhidden costs o employee turnover, including:

• The goodwill that can be lost when key, customer- acing employeesleave an organization,

• The impact on the motivation o ormer coworkers who may need toincrease their workload until a replacement is ound, and

• The opportunity cost o an open seat.

th d b : S c r v rs s op C rp rS ci n w r s

For consumer social networks, users agree: open is good and providesthe reest expression and most connections. On the opposite endo the spectrum, SelectMinds clients agree that providing opt-inmembership, or the ability or members to invite others outsidethe network, would increase risk to the degree that they would notimplement a network. Unanimously, SelectMinds client companiesopt or secure, exclusive networks—open only to identi edconstituencies, whether that is all employees, new hires, a departmentor all a lumni o an organization. Providing network members withrole-based access to in ormation is also important to SelectMindsclients. Corporate network members also indicate their pre erence toparticipate in a secure and exclusive environment.

Corporate o cers concerned with compliance are equal ly adamantabout in ormation privacy and security. Providing access to trustedmembers o a network versus an open process provides the security and trust that protects organizations and their constituencies.

Similarly, Gen Y workers polled or the SelectMinds/Intellisurvey Workplace Connections study are also cautious when it comes to issueso privacy and data security.

• More than hal (57%) o employees age 20-29 say they would emore com ortable sharing in ormation and building pro essionalrelationships on a private, company-sponsored network (i.e. one

whose participants might include co-workers, alumni, suppliers,advisors, and board members).

• Only 13% voice a pre erence or public networks such as LinkedIor MySpace.

• Among reasons cited or these pre erences are security issues (citimportant by 63% o the GenY respondents), trust (50%), commointerests/background (42%), and similar skill sets/educationalbackground (40%).

M s P p r a f i y gr ps r C rp rS ci n w r i

Where should an organization star t, when launching an enterpriseCorporate Social Network? SelectMinds queried its clients to learn trelative level o importance o linking various a nity groups wittheir organizations. The results ollow:

A nity Group Importance on a scale o 1 to 5

Women 4

Corporate Alumni 4.4

Recent College Graduates 4.4Interns 4.4

Pro essional Groups (Internal) 4.1

Partners (Alliances) 4.0

Retirees 3.6

Customers 3.6

Suppliers 3.1

These results relate directly to the utility o Corporate SocialNetworking in human capital management. Companies are ocusedon the War or Talent; solutions that help attract, hire, engage andretain knowledge workers are clearly the most important or theSelectMinds client base. Companies invest 36% o their capitalin people. The speed at which business moves today requires highvelocity in knowledge exchange among employees and relatedconstituencies. Companies that connect their people through richCorporate Social Networking programs will innovate more quickly,be more productive and retain key talent or longer periods o timeas well as maintain li elong relationships with employees as they m





to other opportunities and potentially back into the company. Hence women, alumni, recent college graduates and interns lead the list orimportance or Corporate Social Networking initiatives.

The SelectMinds/Intellisurvey report also showed that CorporateSocial Networking wil l have bene cial e ect on workers’ satis actionand engagement with their employer and coworkers:

• 83% o workers rate trusted relationships with co-workers andsuppliers as a critical reason or joining and staying with anemployer.

• Without these relationships, these same workers may leave:approximately one in our (23%) employees reports quitting a job

due to eelings o isolation.The connected organization urther bene ts rom candidate re errals

rom networked constituencies, leading to higher quality hires o passive jobseekers—the most sought-a ter type o hire. Maintainingnetworks o ormer employees, retirees, and ormer interns providessources o known talent who are productive more quickly, stay longer,and cost less to hire than any other candidate population.

Similarly, organizations that provide women’s networks and thepolicies and programs to support women in the work orce will have acompetitive edge based on their ability to attract, retain and promote

women. Creativity, a more collaborative work orce and the ability to

capitalize on this highly educated and talented population urtheradds to the ability o organizations to innovate and compete.

Reasons or linking customers are obvious: Building customer loyalty,gaining input rom customers in the product development process,and creating communities o customers all increase the retentiono clients. SelectMinds client companies equate the importance o linking customers to that o linking retirees, as well.

These organizations are aware they ace the loss o a substantialknowledge base and talent pool as the majority o baby boomers reachretirement age. They are also aware that today’s retirement-aged baby boomers want to remain engaged with their employers and remaininterested in part time and fexible work schedules. Maintainingrelationships between employees and retirees, or mentoring andknowledge sharing as well as access to this highly knowledgeabletalent pool, helps organizations to continue to sta projects andinnovate as the demographics o their talent pools change.

usi C rp r S ci n w r i r R io b r i

In a study titled “The Importance o E ective Onboarding,” the HumanCapital Institute, a think tank and industry association, ound that“Newcomers who quickly establish a strategic network o relationsh

with co-workers and key resources are more productive, satis ed, anloyal to the organization.” Clearly, worker mobility has reached newlevels. More than 25 percent o all workers in the United States havebeen with their company less than one year, and more than 33 percenless than two years. On average, American workers will change job10 times between ages 18 and 37, according to the Babson WorkingKnowledge Research Program.

The SelectMinds/Intellisurvey Workplace Connections study alsoshows that Gen Y workers are placing a new sense o importance on

workplace relationships. More than three-quarters (77%) o workeage 20-29 believe that the social aspects o work are very importantheir overall sense o workplace satis action, compared with 67% otheir older colleagues.

The Human Capital Institute study also ound that new employeesdecide whether to remain with or leave an organization in the rstsix months. The availability o these relationships can be animportant actor in helping them to decide to stay, according toWorkplace Connections:

• When transitioning into a new job, GenYers rank “cementingrelationships with colleagues and supervisors and adapting to a necompany culture” (74%) as their number one challenge, ahead o learning the new job responsibilities (27%).

• Nearly hal (46%) o these GenYers also rate the availability o support/networking programs or employees with common interes(e.g. new mothers, pre-retirees, new mid-career hires, and recentgraduates) as a very important actor in their decisions to join andor remain with an employer, compared with 36% o their othercolleagues.





II. uSIng CoRPoRate SoCIal netWoRkS toReHIRe oRMeR eMPloYeeS

As noted in the beginning o this report, alumni o an organizationhave long been recognized as sources o new business and employeere errals, as well as or their potential roles as customers and re-hiredemployees. Connecting alumni electronically, with each other and

with current employees, can escalate these bene ts by osteringconnectivity and in ormation fow. Additional bene ts include accessto the knowledge that experienced alumni hold, the ability to in ormopinions and discussions alumni have about the organization, andthe potential to create positive impressions or individuals who may

remain shareholders or customers o the organization. Such brandambassadorship, whether or an organization’s employmentor corporate brand, can have substantive results. In this section,

we explore the return on investment o a Corporate AlumniSocial Network.

R hir s Hi h gr R i

Organizational alumni bring many bene ts when they rejoin anorganization. Understanding the culture, work ethic and how tonavigate their ormer employer’s organization, the knowledge that theorganization has about their prior per ormance, and in some cases

the goodwill associated with a returning, customer- acing employeecan have substantial nancial impact. More di cult to quanti y isthe positive morale implications associated with an individual whole t and rejoined an organization, on the part o the individual’s peers

who remained employees o that organization. Learning that the grassis not always greener at the next employer can have an incrementalimpact on the engagement, satis action and retention o all employees.

One SelectMinds customer commented, “Our rehires know how to succeed, and so they are more guaranteed o advancement. Most

who leave and come back are extremely success ul—they have triedelsewhere and ound they can return and get promoted, as they know both our expectations—and that the grass isn’t greener outsideour organization. Most o our rehires are at the manager level; they may leave as a senior and come back as a manager, with a betterunderstanding o managing work-li e balance.”

An organization’s rate o rehires versus total experienced hires canprovide insight into current bene ts as well as provide targets orincreasing the nancial contributions o alumni hires. SelectMinds

has ound that most clients are able to increase the amount o rehireversus external experienced hires by approximately 30 percentollowing the implementation o a Corporate Social Network linkin

alumni with each other, the company and their ormer peers. Higherpercentages o rehires may be associated with increases in productiretention and new business.

Hiri C s s ass ci wi h R hir s v rs s aexp ri c Hir s

Cost-per-hire is an elusive gure or many companies. A number oelements may be included or may be considered as sunk costs and,

there ore, not included in an organization’s cost-per-hire. Some o these costs may include:

• External recruiter ees, in many cases averaging 30 percent o a nhire’s annual salary

• Internal recruiter time

• HR associate time

• Advertising ees, including the cost o advertising agency participation in the advertisement’s creation

• Hiring managers’ time spent on the hire, rom reviewing the jobdescription through interviewing the candidates and time spent withe recruiting organization

• Travel and relocation expenses• Orientation and training costs

Most SelectMinds customers report signi cantly less expenseassociated with rehires as compared to new, experienced hires.Generally there are no external recruitment ees associated whenthe rehire comes through the Corporate Alumni Social Network;similarly, there may be ewer advertising costs when the job is soursolely through the alumni network; there will be ewer interviews,background checks, and less training o a rehire.

Imp c h Hiri err r R : c s irsY r t r r

Many companies take a Six Sigma approach to their recruitingunction; one aspect o this process is ocusing on the error rate

associated with recruiting, which may also be de ned as rst yearturnover. There are many infuences on rst year turnover, the mostbasic o which is t: Does the recruit have the experience, skills an





aptitude or the job or which he or she has been hired? Is the recruita good cultural t or the organization? Does his or her work ethicmatch that o the organization? Beyond these issues are actors such asthe onboarding process which should include relational onboarding.In this section, we ocus on the t between the individual and theorganization.

SelectMinds clients have ound that the retention o rst year rehiresexceeds that o all experienced hires, by a large actor. Following arethe actors that contribute to this, as identi ed by SelectMinds clients:

• Rehires are more productive earlier, and there ore are more satis ed with their jobs.

• Rehires are com ortable with the organization’s culture and work ethic.

• Rehires know “how to get work done,” or how to navigate theorganization.

• Rehires may have many pro essional and social contacts within yourorganization and so be more satis ed with the overall quality o their

work experience.

S i s ass ci wi h R c i i h R cr i ierr r R , r irs Y r t r r

Studies by The Recruiting Roundtable, a division o The Corporate

Executive Board, show that turnover costs a company, conservatively,twice the employee’s annual salary. Included in this calculation are:

• Separation costs: severance pay, exit interviewer time, outplacementees, possible legal ees

• Replacement costs (as de ned above:“Hiring Costs Associated withRehires Versus All Experienced Hires” )

• Cost o an open seat (decrease in output, sales opportunity cost)

• Impact on goodwill: Internal (morale) and external (customerrelationships)

Signi cant savings may be associated with the increased rst-year

retention o rehired ormer employees when compared with the rst-year retention rate o all experienced new hires.

l -t rm R i R hir s ass ci S i s

In addition to a reduction in the Recruiting Error Rate, the overallretention rate may be increased with rehires. Responses to questions

about rehire retention during the SelectMinds in-depth interviewsyielded results rom twice as long as al l experienced hires (supportby industry studies) to: “They stay with us or the rest o their careOnce they’ve le t and come back, they have made the decision to sta

Pr c i i y Imp ic i s R hir s: tim C rib i

SelectMinds clients report that, on average, the time to contributiono rehires is hal that o all experienced hires. Former employees

join an organization with knowledge o the organization’s culture, i work ethic, and how to navigate and progress within the organizatio

In many cases they also have knowledge o customers and establishrelationships within the organization that can acil itate work.Considering the productivity bene ts associated with a signi cantnumber o rehires versus all experienced hires, organizations ocuon rehiring well respected, ormer employees may gain a competitivedge and wil l signi cantly improve organizational per ormance.

Pr c i i y Imp ic i s R hir s: S r P r rm

A study conducted by The Recruiting Roundtable ound thatStar Per ormers contribute three times the productivity o averageper ormers. SelectMinds client companies say that rehires are more

likely to be star per ormers, with an average o approximately 66percent o rehires classi ed as such, as compared to approximately to 33 percent o all hires.

III. Re eRRal PRogRaMS and tHeIR IMPaCton HIRIng

Executives, recruiters and hiring managers agree: The most soughta ter candidates are generally not looking or new positions. They gain ully employed and may be open to new opportunities, i they are re erred by the right person—a trusted riend or amily membeRe errals cost less to hire as there is no external recruiter ee, they generally are a good t or your organization, as the re errer is awathe culture and work ethic o your company. Re errals generally hathe skills to ul ll the position; re erring employees know that theper ormance o their re errals refects on their reputation within theorganization and so will re er ta lented individuals. With CorporateSocial Networking, companies provide access to job openings tointerns and ormer interns, employees, partners, customers and orm





employees, with “Re er a riend” unctionality. Re erral bonuses thatare paid ollowing the success ul per ormance o the new employeeprovide incentive to re errers and are a small percentage o the costsassociated with third-party recruiters.

Iv. neW BuSIneSS IMPlICatIonS oCoRPoRate SoCIal netWoRkIng

In many cases ormer employees nd new employment at clientcompanies, partners, or other related organizations. Alumni arethere ore o ten in a position to recommend your company as asupplier to their current organization or to other potential customersand to continue to network with their ormer colleagues on potentialnew deals. These individuals a re also potentially infuential brandambassadors. Arming them with in ormation about company progress, new products, large competitive wins and other news canin orm the dialogue they are likely to have about your organization.

Anecdotal evidence is clear: Former employees generate new business. Networking ormer with current employees can magni y that potential by providing real-time access and knowledge sharing.

As noted early in this paper, SelectMinds customers have tracked,individually, as much as $180 million in new business infuenced by

ormer employees, in a single year.

Because Corporate Social Networking is a nascent industry, many companies have yet to track the touch-points o alumni with new business. Integrating the Corporate Social Network with CRMsystems to populate contacts and track deal infuence will enablethe tracking o new business generated through this infuentialconstituency.

C c siThe line between consumer and business applications and betweenthe personal and pro essional lives o employees and other corporaconstituencies is blurring. Workers come in an out o the work orceand in and out o companies, at a higher rate than ever be ore andseek to maintain connections to their current and ormer associates.Executives intuitively understand the importance to their careers—and to their ability to e ect change—o the care ul managemento their pro essional networks. Forging and ostering personalconnections throughout organizations helps to break down silos, aligcorporate objectives and engage employees more ully.

Organizations that acil itate such network connections andmanagement tools bene t rom increased velocity in knowledgesharing, increased engagement o their employee base, and morein ormed communications with al l constituencies. SelectMindsclients are nding that Corporate Social Networks positively impactretention, productivity and employee retention, all o which contributo increased business per ormance. With the advent o Web 2.0 andthe acceptance o social networking, orward thinking companies embracing connectivity or a ll o these reasons.





aBout SeleCtMIndS

SelectMinds is the leading global provider o secure, Corporate Social Networ ing solutions. Using the power o Web .0, SelectMinds helorganizations build connections among and between groups o women, employees, alumni, retirees, and other constituencies. These powerconnections drive increased nowledge sharing and collaboration, enable strategic talent sourcing, and oster employee development andretention. The result is a higher per orming organization with the ability to innovate quic ly, increase productivity, and hire and retain ey tSelectMinds clients include more than 60 leading organizations including JPMorgan Chase, Dow Chemical, Loc heed Martin, BearingPoint& Wat ins, Schlumberger, and Deloitte. To learn more about SelectMinds solutions, including its women’s networ solution, WomenConnecTM,please go to www.selectminds.com/connect.

SeleCtMIndS LONDON18 Hanover SquareLondon, W1S 1HX

Phone: +44 (0) 03 170 8606

SeleCtMIndS NEW YORk149 Fi th Avenue 6th FloorNew Yor , NY 10010

in [email protected]: 877-CSN-EXPT ( 76-3978)Fax: 1 -481-6111

WWW.SELECTMINDS.COM

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