Employment: Making the most of your networks, but which ones?

Leveraging a network can be a highly effective strategy in the professional world: economic studies indicate that 30% to 50% of jobs are secured through social connections. Yet understanding which networks to rely on is crucial when looking for a job. According to economists Sofía Ruiz-Palazuelos, María Paz Espinosa, and Jaromír Kovářík, broader networks of acquaintances are more effective than close-knit circles of friends—an intriguing finding that serve to challenge common assumptions.

Landing a job is rarely as straightforward as crossing the street. To succeed, jobseekers must adopt a variety of strategies, such as reaching out to potential employers, refining their applications, and leveraging their social networks. These social circles can act as valuable springboards for career opportunities, and many jobseekers will confidently use their contacts. Beyond colleagues, friends also play a pivotal role in spreading job opportunities. However, having a broad network of acquaintances who are disconnected from one another is quite different from maintaining a close-knit group of friends who meet regularly. The relationships we build with others significantly influence the opportunities available to us. A team of researchers highlights how specific types of networks can make the path to employment much smoother.

Networking, yes, but how?

Platforms like LinkedIn, Facebook, Instagram, and many other social networks have increasingly become tools for recruitment. In 2017, the fast-food chain McDonald's launched a hiring campaign on Snapchat, using 10-second videos of employees highlighting the benefits of working there  . With just a few clicks, users could view nearby job openings and apply online. McDonald's isn’t the only company turning to social networks to find employees. As early as 2016, JPMorgan's marketing director told Business Insider, “You have to reach people where they are, and they're on Snapchat”.

Picture by Wayhome Studio on Adobe stock

Today, nearly 82% of job seekers rely on social networks. However, it’s not just online platforms that can help in finding a job—personal networks of acquaintances also play a significant role. In fact, 30% to 50% of jobs are secured through personal connections with friends or contacts encountered regularly. That said, the quality and structure of these networks can significantly impact the likelihood of landing a job, sometimes in unexpected ways.

With just a swipe of a finger, interested users are directed to the company's application page on Snapchat, where they can quickly view nearby job openings and submit their applications within minutes.

In 1973, American sociologist Mark Granovetter revealed that 16.7% of employees surveyed learned about job opportunities through close friends, while 83.4% discovered them via distant acquaintances. This unexpected finding inspired economists Sofía Ruiz-Palazuelos, María Paz Espinosa, and Jaromír Kovářík to investigate the influence of social networks on job searches.

Weak ties

Most researchers concur that having more friends increases the likelihood of receiving job opportunities. This probability grows with the number of contacts, as each one serves as a potential source of information, a concept demonstrated by economist Toni Calvó-Armengol.

Researcher Mark Granovetter introduced a new perspective by emphasising the "strength of weak ties." The stronger a bond with someone, the more mutual friends are typically shared. In contrast, weak ties involve few mutual friends, making them valuable sources of unique information. Because distant acquaintances—these weak ties—exist outside one’s usual social circles, they often provide access to new information and opportunities. Granovetter's theory focuses on the content of information shared through these ties. However, economists Sofía Ruiz-Palazuelos, María Paz Espinosa, and Jaromír Kovářík sought to determine whether the advantage of these weak ties also stems from how information is distributed—that is, the structure of the network itself. According to their theoretical model, having more friends does not always make it easier to secure a job, at least not under certain conditions.

Getting to know one another

Their model simplifies reality by imagining a world where all people have exactly the same qualifications, and where employed people, who know about a job offer, tell all their friends about it.1.

In this system, the researchers demonstrate that the value of weak ties largely depends on the network's capacity to spread information. People with friends across different social circles are more likely to secure a job than those whose friends are all part of the same group. This holds true even when there is significant competition among candidates for the job.

To understand this finding, imagine that a friend who is already employed learns about a job opening and shares it within their circle. Everyone in that group who is unemployed will likely apply, creating direct competition for the position. The more mutual friends you share with the person sharing the information, the greater the competition, which reduces your chances. However, if your contact has connections in diverse social groups, it’s more likely that some of those groups have no other unemployed individuals, giving you a better chance of being among the first to hear about and apply for the job.

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  Calvó-Armengol A. , Matthew O. J., 2004. "The Effects of Social Networks on Employment and Inequality." American Economic Review, 94 (3): 426–454.
   

Picture by Duy Pham on Unsplash

Additionally, members of the same social network often face similar professional circumstances, such as periods of unemployment or industry downturns. In such cases, the entire group may simultaneously compete for jobs, limiting the spread of new information. Conversely, in a broader and more diverse network, you are more likely to encounter individuals in varied professional situations, which increases the likelihood of knowing someone who isn’t connected to others currently seeking a job.

The notion that having more friends increases your chances of finding a job is valid only when networks are structured similarly. A person whose contacts are not connected may have a greater number of job opportunities than someone else, even if they have fewer friends.

Ways of understanding social issues

While this economic model suggests prioritising circles of acquaintances, applying it in everyday life remains challenging. Friendship, ideally, should take precedence over professional strategies. Fortunately, the authors base their conclusions on a simplified model and encourage further enrichment by incorporating new variables. For instance, their article explores scenarios where individuals are offered jobs with varying salaries. In such cases, those with overlapping social circles may encounter fewer job opportunities but could have the advantage of selecting the highest-paying one.

Further scenarios could also be considered. The model assumes that individuals automatically share job offers they know about, but in reality, people may adopt strategies to share such information only under specific conditions. Including this dynamic could provide deeper insights into how networks influence employment.

Nonetheless, the model opens avenues for understanding the impact of interpersonal relationships on employability. Companies and institutions might consider network structures when designing their hiring processes. This explains why some organisations utilise social media platforms, as these platforms facilitate information sharing through "weak ties".

This theory also sheds light on certain social injustices. For example, the structure of knowledge networks differs by gender, which can affect professional outcomes. Men and women tend to form distinct types of relationships : women often favour "strong ties" with several mutual friends, while men tend to build more diverse connections across different groups. According to this model, the types of relationships men typically maintain offer better access to information2. This provides the authors with new insights into workplace inequalities between men and women.

Although network-based models do not always mirror social reality, they highlight critical issues ranging from labour market dynamics to social inequalities.

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  Prummer A. 2020 "Micro-targeting and polarization" Journal of Public Economics, 188-104210