Measuring and Leveraging Networks for Recruiting, Retention, and Development
When it comes to talent management, it's easy to get swept up in human capital metrics such as skills, qualifications, and experience. But as we delve deeper into the world of HR and people analytics, it becomes increasingly clear that measuring human capital alone is not enough. Social capital - the networks, relationships, and influence within a workplace - is just as important for measuring human potential and performance.
By understanding the social connections between individuals in an organisation, companies can better identify the key networks and influencers in the workplace that can help or hinder their talent management efforts. This information can then be used to leverage social capital in order to improve recruiting, retention, and employee development initiatives.
What is Social Capital in Talent Management?
There are many definitions of social capital, but in a nutshell, it can be seen as the value that is created by relationships between individuals and groups within a workplace.
Social capital can be divided into two main types: bonding and bridging.
Bonding social capital refers to the strong relationships between individuals within a team or organisation. This type of social capital is useful for identifying key influencers in the workplace that can help build trust and loyalty among employees.
Bridging social capital, on the other hand, refers to weaker ties between individuals from different departments or organisations. It is especially beneficial for connecting people with different perspectives and ideas, allowing for new opportunities for collaboration and innovation.
Measuring Social Capital in The Workplace
Bridging versus bonding social capital
Measuring social capital in the workplace requires the use of organisational network analysis (ONA), which looks at the structure and composition of a workplace's networks. This involves identifying key relationships between individuals in order to understand how they interact with each other and how decisions flow through an organisation.
Some commonly used relationship capital metrics include network density, centrality, and brokerage.
Network density is a measure of the number of connections between individuals in a network. Centrality measures an individual's importance within the network, and brokerage looks at how many individuals can be connected through someone else.
These metrics can be used to assess social capital at the micro, meso, or macro level, depending on the scope of the analysis, to better inform talent management strategies such as identifying retention risks, building stronger relationships with employees, and improving recruiting. For instance:
At the micro-level, companies can use social capital analysis to identify employees with strong relationships and high centrality, which can help inform succession planning.
At the meso level, companies can use social capital metrics to identify and address any potential imbalances that exist between departments or locations.
At the macro level, companies can use social capital analysis to understand how their organisation's relationships and networks compare to other companies. This can help them identify areas where they may need to improve in order to stay ahead of the competition.
In the realm of talent management, tracking social capital metrics and conducting Organisational Network Analysis (ONA) can be invaluable for companies. The most common approach to collecting this data is through survey-based methods. This involves sending out employee surveys that ask questions about their social networks, communication patterns, and collaborations with others in the organisation.
Though, as Michael Arena, author of Adaptive Space and Co-Founder of Connected Commons & Syndezo highlights on the Digital HR Leaders podcast:
"You don't always have to just do surveys to do ONA; you could also do engagement surveys and connect that to the network and look at how sentiment is travelling on the network. How energy is travelling on the network."
In essence, conducting network analysis enables talent management teams to gain valuable insights into how work is performed on a daily basis and evaluate its effectiveness. This information is particularly valuable during times of economic uncertainty, as it can inform decisions on recruitment, retention, and career development.
Improving Recruiting with Social Capital
With an understanding of how social capital works, companies can start to leverage it for recruitment and talent acquisition. This involves tapping into existing networks to identify passive candidates and find the right people for a job.
One way to tap into existing networks is through employee referrals. Employees who have strong relationships within the company are likely to know individuals who would be a good fit for open positions.
Leveraging Social Capital for Retention
Social capital analysis can play a significant role in employee retention. By understanding the dynamics of an employee's personal and professional networks, companies can gain insights into potential risks to retention.
For instance, if an employee has been found to be particularly well-connected within the organisation or lacks connections to their colleagues, they may be more likely to feel isolated and dissatisfied with their job. Having an understanding of this dynamic can help companies take proactive steps to address any potential risks and retain their employees.
Leveraging social capital for retention also involves building strong relationships with employees. Creating a culture of trust and transparency is key here - managers should strive to foster stronger connections with their teams by taking the time to understand each individual's needs and goals. This can be done through regular feedback sessions, team-building activities, and cultivating a sense of inclusion among all employees.
Supporting Employee Development with Social Capital
And if we turn to the development piece of the equation, leveraging social capital can also be used to support employee growth and career advancement. By understanding an individual's network through social capital analysis, managers can identify key influencers who can act as mentors and sponsors.
For instance, if a manager identifies an employee who has strong connections to senior leaders in the organisation, they may be a valuable candidate for a mentorship program. This individual can provide guidance and support to other employees who may be seeking career advice or looking for opportunities to grow within the organisation.
And by using social capital analysis to identify which individuals hold the most power in an organisation, companies can ensure that the right individuals are sponsoring and advocating for employees who are seeking advancement.
Maximising Social Capital for Effective Talent Management with People Analytics Consultancy
Ultimately, leveraging social capital for talent management can help companies build stronger relationships with their employees, improve recruiting efforts, and support employee development.
However, leveraging social capital requires a strategic approach. One which aligns stakeholder needs with the HR function. This requires a deep understanding of the organisation's culture, values, and goals, as well as the ability to translate that knowledge into effective talent management and people analytics strategies.
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