Social Networks - A Substitute for Employees?

By Frank Mulligan, Talent Software

I am not a graduate of Wharton but I do sign up for their informative Newsletters.

A recent article suggests something counter-intuitive. That when employees leave your company their knowledge and experience do not leave with them. In fact, new knowledge comes into the organisation that loses the employee.

Itís not so much a brain drain, but a brain gain.

They cite research which suggests that firms can wind up gaining access to the knowledge being generated at their former colleagueís new company. This research seems to be limited to knowledge workers in the high tech field but you can see how it might apply to other industries. However, I would note that the research does have a specific semiconductor RandD focus so it may not be applicable everywhere.

The details are interesting. The research says that companies that lost an employee to another company were 8% more likely to cite the patents of that company than other equivalent companies. So the connections with the former employee remain and the company gets an insider view of the hiring company. Strangely, the effect was stronger when the employee moved to another region. Then the old company was 22% more likely to cite the new firm.

The basis of these results seem to be that there are informal social networks that exist independently of the company. These networks do not necessarily amount to industrial spying. They are more akin to the kind of give and take between professionals who work in the same field, and who have an interest in developing the field itself. Sharing results can produce positive results because it creates an atmosphere where individual researchers can receive more than they give.

Sounds like a strong case for building an Alumni Network.

Comments to: frank.mulligan@recruit-china.com