SelectMinds Study Reveals Financial Contributions
New York — Oct. 30
While many organizations have banned the use of consumer social networking sites such as MySpace and Facebook, a new study released by SelectMinds reveals that private, secure corporate social networks (CSN) can save organizations millions of dollars. Corporate social networks are online, affinity-based social networks through which relationships can be leveraged for business value and are open only to constituencies identified by an organization.
SelectMinds Inc., the leading provider of corporate social networking solutions, announced the results of its first annual client benchmarking study, which examined the financial contributions of CSN solutions to a cross-section of its client base of 60 leading, global organizations. The report revealed that a better connected workforce through CSN technology can yield significant financial contributions to organizations.
Key findings of the study, “Corporate Social Networking: Increasing the Density of Workplace Connections to Power Business Performance,” include:
1. Productivity Contributions: SelectMinds client companies reported that corporate social networking can increase productivity by an average of 10.3 percent.
• SelectMinds clients responded that increasing employee connections may result in productivity increases by:
o Helping employees understand where centers of expertise reside.
o Connecting globally dispersed teams.
o Helping employees feel more engaged and therefore more productive.
o Shortening the time to discover relevant information.
2. Retention Contributions: SelectMinds client companies reported that corporate social networking may contribute to an increase in retention by an average of 8.8 percent.
• SelectMinds clients believe that employees who feel more connected with each other and the organization are more engaged and more satisfied with their jobs and will stay longer.
• With the cost of turnover totaling twice an employee’s salary, retention increases have significant cost savings to an organization.
3. Increases in New Business: SelectMinds client companies reported that corporate social networking can increase new business by an average of 11.7 percent.
• SelectMinds clients report that linking employees through corporate social networking increases the likelihood of new deal completions. Clients also reported new business increases by linking current employees with former employees (or corporate alumni) who may refer business back into the organization through their corporate social network.
4. Rehiring Former Employees:
• SelectMinds clients report that on average, rehires made through their corporate social networking program become fully productive 49 percent faster than all experienced hires.
• SelectMinds clients report that on average, 66 percent of rehires made through their corporate social networking program are star performers versus 26 percent of experienced hires. According to industry stats, star performers contribute three times the amount of an average performer.
• SelectMinds clients report that rehires stay at least twice as long as all experienced hires.
o Rehires are more productive earlier and therefore are more satisfied with their jobs.
o Rehires are comfortable with the organization’s culture and work ethic.
o Rehires know “how to get work done” or how to navigate the organization.
“The speed at which business moves today requires real-time knowledge exchange among employees and related constituencies,” said Diane Pardee, chief marketing officer of SelectMinds. “Organizations that forge and foster personal connections through corporate social networking technology can help break down silos, align corporate objectives and better engage current and former employees. The result is a higher performing and more productive organization that will reap the financial benefits that are clearly outlined in this study.”