Impact of networking on employee turnover

Networking is all about building and maintaining social and professional relationships. Networking can be valuable for mentoring, potential job opportunities, and gaining knowledge. Researchers have wondered whether or not connecting with more people will increase or decrease the likelihood that they voluntarily leave their places of employment. Research conducted by Portor, Woo, and Campion (2016) from Personnel Psychology suggests that it all depends on the types of networks someone has.

Generally, there are two types of networking–internal and external. Internal networking refers to establishing relationships with individuals in your current organization. The researchers (Portor et al., 2006) found that the more that individuals engaged in internal networking, the less likely they were to have resigned from their companies within the last two years. Further, the researchers found that internal networking facilitated psychological attachment to the organization and increased perceptions of organizational fit. Because of these factors, individuals were more content in their current organization and less likely to look elsewhere.

In contrast, external networking refers to establishing relationships with individuals outside of your organization. The researchers (Portor et al., 2016) found that the more that individuals engaged in external networking, the more likely they were to have resigned from their companies within the last two years. The researchers found that this likely relates to the job opportunities presented from external network connections. Many individuals gain job offers through referrals at other organizations.

Companies can utilize this information to decrease turnover and retain their top talent. Given that internal networking is critical for retention, companies should organize more events that offer opportunities for internal networking. These may include: mentoring programs, cross-functional teams, or job rotations.