SOURCE: SelectMinds

October 22, 2007 09:45 ET

SelectMinds Client Study Reveals the Financial Contributions of Corporate Social Networking Solutions

Study Reveals That Workforces Connected Through Corporate Social Networking Technology Can Significantly Increase Productivity, Employee Retention and New Business

NEW YORK, NY--(Marketwire - October 22, 2007) - While many organizations have banned the use of consumer social networking sites such as MySpace and Facebook, a new study released today by SelectMinds reveals that private, secure Corporate Social Networks can save organizations millions of dollars. Corporate Social Networks are online, affinity-based social networks through which relationships can be leveraged for business value and are open only to constituencies identified by an organization.

SelectMinds, Inc., the leading provider of Corporate Social Networking (CSN) solutions, today announced the results of its first annual client benchmarking study, which examined the financial contributions of CSN solutions to a cross section of its client base of 60 leading, global organizations. The report revealed that a better connected workforce through CSN technology can yield significant financial contributions to organizations.

Key findings of the study, "Corporate Social Networking: Increasing the Density of Workplace Connections to Power Business Performance" include:

1. Productivity Contributions: SelectMinds client companies reported that Corporate Social Networking can increase productivity by an average of 10.3 percent.

--  SelectMinds clients responded that increasing employee connections may
    result in productivity increases by:
    --  Helping employees understand where centers of expertise reside
    --  Connecting globally dispersed teams
    --  Helping employees feel more engaged and therefore more productive
    --  Shortening the time to discover relevant information

2. Retention Contributions: SelectMinds client companies reported that Corporate Social Networking may contribute to an increase in retention by an average of 8.8 percent.

--  SelectMinds clients believe that employees who feel more connected
    with each other and the organization are more engaged and more satisfied
    with their jobs and will stay longer.
--  With the cost of turnover totaling twice an employee's salary,
    retention increases have significant cost savings to an organization.
    

3. Increases in New Business: SelectMinds client companies reported that Corporate Social Networking can increase new business by an average of 11.7 percent.

--  SelectMinds clients report that linking employees through Corporate
    Social Networking increases the likelihood of new deal completions.
    Clients also reported new business increases by linking current employees
    with former employees (or corporate alumni) who may refer business back
    into the organization through their Corporate Social Network.
    

4. Rehiring Former Employees:

--  SelectMinds clients report that on average, rehires made through their
    Corporate Social Networking program become fully productive 49 percent
    faster than all experienced hires.
--  SelectMinds clients report that on average, 66 percent of rehires made
    through their Corporate Social Networking program are Star Performers
    versus 26 percent of experienced hires.  According to industry stats,
    Star Performers contribute three times the amount of an average
    performer.
--  SelectMinds clients report that rehires stay at least twice as long as
    all experienced hires.
    --  Rehires are more productive earlier and therefore are more
        satisfied with their jobs
    --  Rehires are comfortable with the organization's culture and
        work ethic
    --  Rehires know "how to get work done" or how to navigate the
        organization

"The speed at which business moves today requires real time knowledge exchange among employees and related constituencies," said Diane Pardee, chief marketing officer, SelectMinds. "Organizations that forge and foster personal connections through Corporate Social Networking technology can help break down silos, align corporate objectives and better engage current and former employees. The result is a higher performing and more productive organization that will reap the financial benefits that are clearly outlined in this study."

Note to the Editor:

The SelectMinds Client Benchmarking Study was conducted in the first half of 2007 and surveyed a cross section of SelectMinds client base of 60 organizations which are primarily Global 2000 companies and include many Fortune 500 firms. For a complete copy of the report, please contact Kate Leeson at kate.leeson@selectminds.com or 646-722-6032.

About SelectMinds

SelectMinds is the leading global provider of secure, on demand, Corporate Social Networking solutions. Using the power of Web 2.0, SelectMinds helps organizations build connections among and between groups of employees, women, alumni, retirees, and other constituencies. These powerful connections drive increased knowledge sharing and collaboration, enable strategic talent sourcing, and foster employee development and retention. The result is a higher performing organization with the ability to innovate quickly, increase productivity and hire and retain key talent. SelectMinds clients include more than 60 leading organizations including JPMorgan Chase, The Dow Chemical Company, Lockheed Martin, Latham & Watkins, Schlumberger and Deloitte. For more information, visit www.selectminds.com.

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