The dirty little secret of the recruitment industry is that finding a job is really more about networking with the right people than applying for countless advertised jobs. In fact, most jobs are not even advertised. Therefore, the value of networking becomes extremely high.
Lou Adler, author of Performance-based Hiring, suggests that job-seekers apply a 20/20/60 approach:
- 20% of job search time responding job postings through a backdoor (via referrals) instead of the front door (applying through a form or sending in a resume).
- 20% enhancing your resume and LinkedIn profile for findability and readbility.
- 60% networking the hidden market for jobs.
He also claims that candidates who are “referred to a hiring manager by a trusted person is 50-100x more likely” to get an interview and get hired than those who simply submit a resume to a posted job. The referred person also has the advantage of being considered for jobs not publicly posted.
That’s where LinkedIn can help.
Networking, and the ease of doing so, is one of the primary features that makes professional social networking site LinkedIn.com so different from the countless run-of-the-mill job boards. They’ve leveraged the concept of “six degrees of separation” — the theory that everyone in the world is connected to each other through relationships, with at most six degrees (connections) of separation. To connect with one person in particular, you just need to find at most 5 other people in a relationship chain to connect with the intended person.
Here is how and why you should use the power of LinkedIn referrals to increase your employment prospects.
LinkedIn Facts and Figures
At their core, LinkedIn is a jobs board. However, they leveraged this concept of six degrees of connectedness to rise above the average job boards and became something more: a career social network, aka a social recruiting site. The approach has started to pay off for them. Let’s have a look at some facts and figures.
– LinkedIn launched May 5, 2003 and went public May 19, 2011.
– 4,800 employees in 26 cities (mid Dec 2013).
– Stock price more than doubled over 12 months spanning Aug 2012 to Aug 2013.
– $227/share price in mid Aug 2013 ==> over $25B market capitalization.
– 2013 revenues of $1.53B, with $13.45/share (ttm = trailing twelve-month)
– $2.33B cash reserves — about $19.43 per share
– 39% of members have paid premium accounts (as of Q2 2013).
– 61% of revenue is from the United States.
– There are nearly 280M (277M) users as of early Feb 2014 — an increase of 37M from around Aug 2013 (240M).
– 84M users in the USA as of late Oct 2013.
– Over 30M members (global) were students or recent grads as of late Oct 2013.
– 13% of members were millenials (15-34 years old) as of late Sep 2013. Meaning that LinkedIn is more popular with older professionals.
– 187M unique monthly visitors to LinkedIn (early Feb 2014).
– 34.51% web traffic referrals from Sep 2012 to Sep 2013.
– 2 new members per second.
– 200 conversations per minute in LinkedIn groups, and 8K new Groups created weekly (late Aug 2013).
– Members join an average of 7 Groups (late Aug 2013).
– Over 1.5M Groups as of the end of Q2 2013.
– Over a billion endorsements made, as of mid Feb 2013.
– Available in 20 languages (Feb 2014), across 200 countries and territories (Oct 2013).
– 65% of members are outside the U.S. (Oct 2013).
– 38% of visits via a mobile device.
– 40% of members check LinkedIn daily; 13% at least once per day.
– 3M members have added volunteer experience to their profile since 2011 (mid Jan 2014).
– 59% of members have worked for companies with 200 or fewer employees.
– LinkedIn’s user base of 280M is roughly 25% of Facebook user base of about 1.1B.
– There were 3M business pages and 1.2M products and services showcased, as of late Jun 2013.
– 1500 schools and universities have a LinkedIn profile (late Oct 2013)
– 100% of the Top 50 U.S. law firms have a LinkedIn profile page (Jan 2014).
– 97% of people using bullhorn.com say they use LinkedIn to source job candidates — according to a 2013 survey of 160,000 registered users, who use the site for manage social media job postings.