What is networking and why is it important in business?

In this era of collaboration and shared knowledge, learning what networking is and taking advantage of its benefits is essential not only for professionals but also for all companies. In fact, there are different ways of doing it, depending on whether it is carried out in a physical, digital, or hybrid environment. The main thing, however, is to understand what networking is and what it is for, and how workers and companies can benefit from it.

What is networking and what does it involve?

Networking, or network building, is a key practice in the business world. A 2023 survey conducted by GMNAC reveals that more than half of MBA students identify professional networking as the main motivation for pursuing this educational path. LinkedIn also reports that  80% of professionals consider networking important, highlighting widespread awareness of this practice and why it is so relevant.

Another 2019 study highlights that professionals active on LinkedIn have faster access to information about new job opportunities than their less active peers. In addition, networking has a direct impact on a worker’s career and income, making it a key tool in today’s professional landscape, which is based on relationships and the exchange of talents and skills to achieve results at both individual and corporate levels.

In fact, networking can take place both among professionals working in the same sector and within organizations among employees who, despite having different responsibilities, share the same context and objectives. Both methods allow the sharing of ideas, experiences, and knowledge on relevant topics and issues. Over time, networking can evolve into closer personal relationships based on mutual support.

What is networking used for?

Understanding what networking is also means understanding that its benefits go beyond job searching and are also crucial for those already working within an organization. In fact, results from a study published in the International Economic Review confirm that workers with a broader network advance more quickly in the corporate hierarchy. In this case, when developed within the same organization, it is known as corporate networking.

Another survey by the University of Erlangen-Nuremberg shows that networking, both inside and outside the organization, is linked to higher overall earnings and stronger salary growth, as well as better collective outcomes. In a context where collaboration outweighs competition in importance, corporate networking is the best strategy for achieving goals more quickly through the exchange of resources and skills.

In addition, another very positive aspect of this practice is that it contributes to the development of collective thinking, the expansion of knowledge on specific topics, and the creation of shared awareness and culture. However, for networking to work properly, it requires a bidirectional or multidirectional relationship that can last over time and generate mutual benefits for the people involved and the ecosystem they belong to.

For this reason, when a company has an effective and well-developed network, it means providing an infrastructure and an environment that enables people to interact continuously and rely on each other when needed, thereby multiplying their capabilities. Mentorship is a clear example of what networking is and what it is used for: it facilitates learning and the transfer of technical and social skills, and also contributes to intergenerational knowledge exchange.

Types of networking

In this way, networking fosters growth by also enabling investment optimization and accelerating internal production and learning processes. In an increasingly globalized and complex job market, with the so-called “talent war” looming, networking becomes a crucial ally for companies seeking to stand out.

There are different types of networking that extend beyond organizational boundaries to create synergies between companies from different sectors and accelerate technological development and innovation. Networking can be physical, when sharing the same workspaces, fully digital through platforms, or hybrid, with solutions that allow brainstorming and in-person interaction combined with remote work.

From an individual networking perspective, active participation in industry events and sharing personal skills through writing, presentations, or teaching are effective methods for building a strong reputation and being included in valuable professional circles. The online dimension offers the opportunity to expand networking boundaries by creating an international network.

On the other hand, internal networking provides the security of having a network of collaborators to rely on and share experiences and constructive discussions with. The result is greater unity and confidence among employees, with a direct positive impact on productivity. In addition, this leads to an enrichment of overall knowledge, fostering collective growth within the company. For a professional, expanding their role perspective, testing their limits, and progressing in their career becomes easier, more natural, and more stimulating.

How networking is done in a company

Identifying and actively managing hot, warm, and cold contacts, along with planning specific actions to develop each group, are key elements in building a lasting network. In fact, it is essential to care for the human dimension, and the approach to relationships should be positive, responsible, and open, emphasizing listening and sincerity. Of course, creating and maintaining profitable professional and human relationships through networking is not easy and cannot be improvised.

For this reason, professionals trained in management and people management know what networking is and understand its value. Building a strong corporate network requires a holistic strategy and conscious, distributed leadership, along with the willingness of the people involved, who must be selected by Human Resources based on their ability to work in teams and share knowledge and projects. Master’s in International Business are a good starting point to understand these strategies and apply them effectively.

In fact, building a strong and stable corporate network is a process that goes beyond the online dimension and requires strategic planning involving all departments of the organization. That said, digital tools such as platforms for sharing materials and communication can be very useful for creating a collaborative environment, especially considering the rise of remote work and the difficulty of maintaining meaningful connections without a shared physical workspace.

In conclusion, networking is a practice that requires not only a deep understanding of the strategies involved, but also continuous commitment over time to build and maintain meaningful relationships. Therefore, building and managing an effective network should be entrusted to expert and qualified professionals who know how to identify talent and connect it in productive collaboration. Because 1+1 is almost always more than two.