ODV601 August 16, 2009 Social Networking for Small Businesses By: Julie Laube Laura Murphy Lisa Poulos Lisa Ramirez Michelle Worsham Executive Summary Social Networking sites are on the rise.Only a few years ago, nobody had ever heard of MySpace, Facebook or Twitter, yet today, it would be hard to find a person under the age of 99 that didn’t at least know what they are. Social networking has grown at an astronomical rate and businesses are trying to find a way to connect with people interested in their product in any way possible.Times are hard for the small business owner and it’s not often that advertising can be done for free.These sites allow just that, you can post a link or talk about your business on your page and hope that others pass it along. Hopefully everyone benefits from it. You sell your product or service and the customer gets a product or service they love from a trusted business. This paper will focus on several different aspects of social networking sites as they relate to the small business.We will identify what social networking is, how small businesses benefit from it, investment versus return, how it has changed advertising, and risks associated with this type of exposure.Social networking is the future and is growing at such a fast pace that it is imperative for small businesses to take a look at how they are advertising and “networking”.They may decide not to utilize the resource, but it’s worth analyzing whether or not they will benefit from it.
Table of Contents Social Networking for Small Businesses I.What is Social Networking? II.How Small Businesses Benefit From Social Networking. III.Investment Versus Return. IV.How Social Networking has Changed Advertising. V.Risks Associated With Social Networking. VI.Conclusion VII.References What is Social Networking? Lisa Ramirez For most employees working in an organization or aspiring to get that dream position, it was usually a matter of knowing someone who was already established in that particular company. Usually, current employees are privy to the day to day operations especially when certain positions become available within their department. Long before the vacancies are posted, individuals are usually doing several things: trying to figure out how to get the position for themselves or passing this “inside info” to a close friend or relative. This gives this person ample time to draft a resume, rehearse interview techniques, and practice salary negotiations. Over the course of several weeks, if all goes well, this individual is “hooked up” by his or her inside contact. Sometimes this can be a benefit or a detriment to that business or organization. The benefit comes from a resource being recommended by a trusted source, the current employee. The detriment could be that individual not being truly qualified to perform the job. This process still happens as far as internal postings that organizations provide internally prior to mass release. The major difference today, as it was compared to earlier times, is the method of delivery. Newspapers and job seminars were the main delivery methods for job postings. With the advent of technology, the job posting goes global almost as soon as it’s released to the general job search market. According to a leading HRM professional, “Social media participation is an essential tool in networking with professional contacts, making new contacts, recruiting employees, and keeping in touch with the world. If you’re not participating in the top social media and networking sites, the world is leaving you behind. Why not become involved on the social media Web sites while your participation can advance your career help you obtain superior employees by enlarging your candidate pool, and enable you to easily stay in touch with coworkers and former coworkers at one location.” (Heathfield, 2009). Human Resource managers face many challenges in the performance of their duties.HR managers should be urged to, “Develop a recruiting network for employees with skills that will become increasingly scarce. Especially as the boomers retire or seek part-time opportunities, determine where you will find the employees with technology, medical, and quality skills, as examples, that your organization will need. Various social networks exist for a variety of career fields (Heathfield, 2009). Recruiting and retaining quality personnel drives the success of an organization and its employees. Utilizing networking enables the HR to be more efficient in this process. More companies are utilizing sites such as: The Ladders, Monster, Career Builder, and USA Jobs to enhance their recruiting and selection processes. Using the above mentioned sites and the company’s intranets enables the networking processes of information sharing as it relates to job openings, work environments, and interactions amongst the employees. Social networks such as MySpace and Facebook are slowly reinventing the way networking is utilized to seek out jobs, get information on a company, or recruit new talent. Employers have begun to embrace these tools for their own business purposes as well, using corporate social networking to foster connections between employees, share information quickly across geographically diverse offices, and establish broad recruiting circles by keeping in touch with former employees. The technology is also helping organizations expand their talent management and mentorship programs by giving workers access to a large pool of executives and coworkers, rather than the one or two supervisors with whom they would otherwise interact (“Social Networking Survey”, 2008). Along with any new trend, there are often possible disadvantages to contend with. While there aren't yet any legal cases on point, employers should note that such searches raise privacy concerns and may reveal information about protected characteristics such as race, religion, ethnicity and medical conditions. (Also worth considering: systematic use of such sites may muddy the waters of who is deemed a job applicant for affirmative action purposes.) Until this issue plays out in the courts, Rosen's advice is this: Only search the Internet and social networking sites with prior written consent and after a conditional job offer has been made. (“Social Networking Survey”, 2008). Networking plays a vital role in obtaining the best perspective employee for the job. Most organizational HR departments seek to hire from within to save the time and money associated with the recruitment process. Personal networking within the organization and through the use of intranet and the internet, to include social networking sites, reduces the turnover time. Most individuals have an electronic copy of their resume and most of these are posted online with one of the major job search engines. Individual job seekers across the generations are utilizing technology based networking to find the best job with the best company. Although it’s not a major push toward utilizing social networking sites, HR professionals should realize the potential for utilizing social networking sites to their advantage. How Small Businesses Benefit From Social Networking Julie Sullivan Laube Many small businesses struggle both with getting started and maintaining clientele, no matter what their business type.There are many reasons for this but the primary concern is money.Advertising is expensive and trying to keep up with bigger businesses with even larger budgets is next to impossible.Often money is spent with little if any return profit and the owners are left footing the bill for yet another unsuccessful advertising campaign.They wonder what they could do for less money and more return. There are so many ways that businesses can benefit from social networking if they will just open up to new ideas.Building link popularity, Attracting traffic, and Interaction with the public are a few that we will focus on, but are far from the only benefits.All of the opportunities listed are either free or low cost and can be done at home or from the office.Social networking sites are popping up all of the time and to miss out on using them as a resource is letting a good thing pass you by.MySpace, Facebook and Twitter are just a few that are increasingly popular.Public networks like Facebook and LinkedIn can be used for marketing, recruitment, prospecting and brand enhancement (Jones, 2009). Building link popularity is an important aspect of any business that maintains a website.You must sell your brand or your company no matter what your niche is.Websites need good content,good search engine optimization, and good links in order to get good visibility on the web (Wallace, 2009).You could pay for this service but small businesses often can’t afford the amount that it would cost to get them listed very high on the big search engines such as Yahoo, Google or Bing.One way to get more hits on your site, and more hits moves you higher on the search engine listings, is to have links listed on social media sites.Many social media sites will allow you to include a blurb about yourself or your company and in many cases add a link or links to your sites.Once you get these various social media profiles indexed, they will count as inbound links to your main site.They create opportunities for natural links and they are free (Wallace, 2009).Your link popularity will contribute to the number of hits your site receives per day and more hits equals more sales. Attracting traffic to your business or site is a key element of a successful business.Social networking sites allow you to browse personal sites for anyone that allows you to add them.It allows them to follow your site as well and view links that you have posted.Status updates are a common feature for most networking sites and your friends or connections can view your updates.The more recent the update, the higher it shows up on the list.If I were to post “30% off all gifts atwww.mystore.com “(link made up), I could be fairly certain that someone is going to click on that link.If they add it to their favorite links, then all of their friends can view it and maybe like it too.Even if the people don’t buy every time you post something, it will drive more traffic to your store and make it more popular while raising your listing in search engines.There are other ways to get you site listed in search engines.A common method is by pay-per-click.You can pay anywhere from 1 cent to $5 or more per click (or hit) for your site to list on the first page when a potential client searches for a particular item or business.This can cost thousands of dollars per month for a successful campaign.Posting on social networking sites is free so any return, even a small one, is a profit.Another successful method of attracting traffic to your website is through YouTube.Many companies post a video, advertising their product and include links to their site.Depending on what you are selling or advertising, this may work for you. A third benefit to small businesses is interaction with the public.People like to know who they are giving their business to.Trust is an important part of getting (and keeping) return customers.A relationship is vital to ensuring your success.Show your expertise to potential customers, employees and business partners.For example, if your small brick-and-mortar business sells auto parts, answering members questions in a car enthusiasts forum will build your reputation and likely lead to more sales (Go, 2008).Be sure to us the right site for your business.To maximize their interaction with interested individuals there must be targeted contact to the right kind of person.For instance, one shouldn’t advertise furniture on Myspace.That site in particular has a younger group of people that are members.On MySpace, music and movies are more popular.Facebook draws a slightly older crowd and may be a more realistic advertising forum for products that older more established individuals (homeowners) might be interested in viewing.YouTube draws people interested in “how to” videos for arts, crafts or other specialized products.Together We Served (a military social networking site) might be a good target audience for realtors, furniture movers, or military supply services since people on these sites tend to move every couple of years.If you establish a good relationship with the right people and gain their trust in your service or product, they will continue to support you and your business for years to come. Social networking benefits small businesses in many ways.Because of the low cost and the ability to reach people across the globe, it has become one of the number one ways to get new customers.Whether you are attempting to drive traffic to a specific website, draw customers to a brick-and-mortar store or business, or just trying to interact with the public to get more interest in your product or service, social networking can improve sales or increase traffic. Investment Versus Return. Lisa Poulos Social networking for small businesses presents an opportunity for lesser-known companies to publicly market themselves at a generally lower cost than that of traditional marketing methods. Especially in the case of small businesses, where personal interaction is essential, social networking offers a means by which smaller firms can successfully compete with larger, more aggressive companies within the same industry. With the ever-expanding methods of social networking, however, it is imperative that small businesses weigh the costs versus the benefits of each type of social networking in order to most effectively utilize this medium. In other terms, “one of the challenges of mastering social networking is determining where to invest your resources--time, energy and possibly capital, too” (Weston, 2008). Here, several of these forms of social networking and their potential uses are examined to determine the value of their return on investment for the small business operator. One of the most popular uses of social networking sites is that of marketing or branding businesses. In fact, “IDC, the Massachusetts research firm […] reports that [social networking] will grow to a $428 million market by 2009” (Leary, 2007). Using social networking for marketing purposes can be as simple as hosting an online profile at a social networking site like Facebook, or as complex as developing a highly customized profile site that allows users a high degree of interaction and ability to connect virtually with the firm. Blog sites like Twitter allow firms to have a dialogue with their potential markets, and gain invaluable feedback and ideas for product development. The benefit of using social networking sites as a method of marketing a business is that it allows firms the flexibility to target a specific market through niche sites, or conduct mass marketing via more general-purpose social networking sites. With many of these sites offering thousands, if not millions, of members to connect with, firms literally have an endless database at their fingertips to peruse through for potential customers and business connections. With these potential benefits in mind, small business operators must also remember that they do not control the content of public sites, and must be aware of the reputations of the sites they are associating themselves with. In the case of small businesses operating in the business to consumer market, it is recommended that they use social networking at a minimal cost, via all-purpose web sites such as the aforementioned Facebook and Twitter. For the more complex, yet still small, business-to-business operations, it is advisable to invest in some customization in an effort to more efficiently reach the firms’ target markets. In this way, less time and energy is wasted on communicating a message to an audience unlikely to act on the communicated messages. Social networking can also be used in sourcing talent. Sites such as LinkedIn and Ladders.com offer databases chock-full of potential job candidates across the globe. The benefit of most of these sites is that they are free or very inexpensive, particularly when compared to costly recruiting web sites such as Monster or CareerBuilder, or other means of recruiting such as advertising, job fairs, employment agencies, or the use of headhunters. Additionally, because of the connectedness that exists within these sites, once a specific area or specialty has been located, a multitude of similar contacts is undoubtedly soon to follow. Because of the vast number of users and information available, particularly on these public sites, it is best for small businesses to proceed with caution; “don't go on a blitz and invite dozens of strangers into your connection list this dilutes the usefulness of your contacts and results in a steady stream of unwanted invitations” (Anthony, 2008). Sourcing talent via social networking is most effectively accomplished through a methodical approach where the user hones in on the most highly concentrated area of potential employees, and develops meaningful connections. This may occur after extensive searching through irrelevant material and information, but can make up for the time spent once the appropriate connections are made. The previous forms of social networking have primarily existed in the external realm. Many firms also make use of internal social networking, which allows firms to connect with employees and suppliers. Fewer free or public sites exist to support internal social networking, making it more costly due to the need for detailed customization. The purpose of internal social networking is to derive the most value out of employees and suppliers. Firms do this by connecting employees with one another in an effort to brainstorm new ideas, build camaraderie, and promote retention of valued employees. With suppliers, firms can promote long-term relationships by developing customized social networking sites that may lead to higher switching costs, and a feeling of loyalty to the firm. For both employees and suppliers, internal social networking areas allow individuals to voice their opinions and have a chance to be heard within the company. The benefits of such an internal social network are far-reaching, but only worthwhile when the firm’s budget is accommodating. Potentially one of the most costly uses of social networking, internal forums, blogs, and opportunities to communicate virtually offer advantages that are difficult to match through other means. The use of social networking has become an increasingly prevalent resource in the marketplace. So prevalent in fact, that “one network-weary man created an application called Networking, which measures how much time you spend on social networking sites and how much money you could have earned in that time. The idea is to choose networks that allow you to interact with the kind of people that could possibly help you or your business in some way” (Leary, 2007). The ultimate purpose of social networking remains: to promote revenue and success for one’s business. With this goal in mind, small businesses must continually consider the advantages and disadvantages in which forms of social networking they use, and how they use them, if they intend to rely of this new medium. Depending on the specific firm’s needs, budget, and line of business, research and experience will help best determine which mix of social networking will best suit the firm’s needs and help achieve its goals. How Social Networking has Changed Advertising. Michelle Worsham Newspapers, magazines, radio, television, and the Yellow Pages are all forms of advertisements regardless of the size of the business. Advertisements are used to promote business. In the past and still used today, advertising was more prevalent through newspapers, magazines or on some paper format for distribution. The publishing of such advertisements on newspapers and radios are inexpensive and reach a mass audience. Advertising on magazines, television and the Yellow Pages can be costly however; can reach a magnitude of an audience. Some advertisements are done outdoors which can have a high impact from onlookers and the most instant advertising is done through the use of the internet. Regardless of all these components of advertising, people might be the most highly effective form of advertisement. What we wear, eat, drive, live, attend throughout our daily lives, others are constantly paying attention. With the internet designed with the capability to interact with an infinite number of people or groups, fads and trends are created. Social networking can expand the visibility and exposure of such fads or trends when commenting through different internet sites. As the popularity of technology arises with hyper links and unlimited connectivity, many businesses have taken advantage of advertising through social networks online. Some forms of social networks include, MySpace, Facebook and LinkedIn, to name a few. Since social networking is more of a real-time form of connection, resources and tools are now accessible at will for use at any given time. With the use of social networks, it has changed the way people communicate, stay connected and keep up with family, friends, or other professionals around the world. The traditional way of advertisements on paper needed to be published, printed, distributed and sold before the information was received in the hands of the consumers. Although this form of advertisement is inexpensive, the downfall is it could be outdated by the time it reaches the audience. Today’s society is about having instantaneous results and with the use of today’s technology, advertisements are at the consumers fingertips. “For smaller businesses, social networking isn’t a shortcut to success. However, it offers an intriguing platform for customer, employee and supplier relationship management that can serve not only existing connections but also help to identify new prospects.” Weston (2008). Businesses can now advertise directly on social networks where consumers no longer have to navigate to other sites for services. This immediate action and response has revolutionized a new trend in the social networking arena. For small businesses, utilizing the social networks for less cost, less time consuming and instant marketing is an efficient process as opposed to customizing their own community. One of the challenges businesses face with this exposure is the need to constantly create new business models to keep up with the changing, ever improving needs and demands of consumers. The accessibility and cost effective use of advertising on social networks will bring added competition for marketers. Networking sites such as MySpace and Facebook are one of the top referring web sites for many retailers. These sites attract end users from all aspects of diversity. Most of these social network sites are popular to students, business professionals and others where posting open positions can gain visibility. Where companies spend high dollars in recruiting costs, using social networks through the internet can save cost by paying only the basic membership fees. “People aren’t just looking for what you offer every day, they may appreciate a more human or differentiated message. Maybe they’ll subscribe directly? Maybe they will forward to someone else or, better yet, expose you to an entire audience via link? Maybe they’ll buy something?” (Frerecks, 2009) More businesses have started to advertise on social networking sites to help promote their business. Students are also using these sites to post their resumes and companies use these sites for posting open positions. There are business websites such as LinkedIn which connects business professionals. Designated blogs and other sites have been developed for people to exchange information instantly and have unlimited connection. “One of the challenges of mastering social networking is determining where to invest your resources, time, energy and possibly capital, too. As you gain personal experience using Facebook, LinkedIn or dozens of other networks, you can begin to identify, and ultimately prioritize, the universe of possible initiatives to enhance your career, brand, staff, and revenue.” Although advertising on social networks can invite many viewers which can potentially become customers, suppliers or even employees, sometimes advertising on social networks can damage the face of your business. Someone can blog about a bad experience they may have experienced linked with your business and additional comments from followers can deter others from viewing your advertisement. Followers of such social networks can either help build your business or can help bring it down. In a 2002 article, Zahorsky discussed the 6 Laws of Small Business Advertising Success: 1.) Use one message where your small business advertising needs to quickly communicate its core message in three seconds or less. 2.) Add credibility where the claim of your ad should be real and credible otherwise if the customer does not perceive the ad to be truthful, it can be a waste of ad dollars. 3.) Test everything such as use coupons, codes, and specials to measure the headline, timing, and placement of your ad. 4.) Be easy to contact by ensuring that every single brochure, box, email and all company literature should have full contact information including; website and email address, phone and fax numbers, and company address. 5.) Match ads to target by making sure that the ad speaks to one target market only. 6.) Create curiosity making note that successful business advertising does not sell a product rather it creates an ad that generates interest and makes the customer want more information. In theory, social networking sites can serve as a beneficial inexpensive opportunity for advertising any size business if you plan ahead, determine your target and set goals before experimenting. There are many different social networks available for meeting people, getting advice or opinions, understanding the language/custom/design and obtaining referrals. Using these tools and resources can help you build a foundation on which you can promote your business. With interaction and involvement within the networks, businesses can determine through experience which networks will be more effective for their particular business. This can also help small businesses gain attention and exposure to larger audiences. Risks Associated With Social Networking. Laura Murphy In today’s harsh economic times, small businesses are utilizing the power of social networking more than ever to build a formidable online presence while maintaining a clear-cut position against their larger competitors.Organizations that posses this level of determination have become so consumed with the idea of exploring this widespread phenomenon that they unintentionally overlook the risks and threats involved with conducting business in this manner.Cathy Everett, a principal security consultantstates that, “as a standalone item, information security would be five or six on a list of 10. However, as part of other strategies - such as data loss prevention - they would be number one or two as they provide an easy way for unregulated information to leave the environment.”The potential danger of data leakage is serious because there are often times when vital information is exchanged between more than one party who may not be aware of the confidential factors involved and unintentionally disclose pertinent information that could weaken the establishment’s reputation.According to Everett, “The high level of redundancies that inevitably occur during a recession also increase the likelihood of malicious activity, which at the very least could lead to the firm’s reputation being damaged as a result of slander. While it is possible to contact the site carrying any sensitive or disparaging information to request that it be removed, the problem is that such data can continue to linger in cyberspace as third parties may have undertaken a screen dump or copied information onto their own sites”.Another worrisome consideration for social networking relates to viral infections. This is critical because certain sites may comprise internet applications that allow users to upload files and a potential hazard may include downloading malicious codes from third parties in the form of minute applications or plug-ins that are indistinctively included in the terms and conditions for use consenting to the deployment of spyware. Time management is a major problem for businesses that have become consumed by social networking, e-mail and other tools in the expanding Internet world.While social networking can be a useful means for constructing and making business connections, it’s simple to lose sight of the business reasons for social networking.According to Johnson, “the average person has thirty to one-hundred projects going at one time and with the time spent on social networks, researching on the Web, reading blogs and checking e-mail, it’s becoming more difficult to tend to real-life responsibilities”.The accessibility of the world-wide web for small businesses has been a tremendous asset but some may take this opportunity to far and find themselves trapped in the addiction of communicating strictly via internet.Businesses that do not take the time to invest in the alternative means of social networking may soon realize that their employees are heading down a path of becoming obsessed and cannot stop checking their business contacts on Facebook or Lindekin.Brick Marketing states that, “this is and has been an occurring problem for those who have the desperate need to stay connected with others they barely know or just met and can’t function effectively because they are glued to their mobile device responding and updating lists.These individuals are oblivious to how bad it is affecting their lives and responsibilities they have in their personal and professional lives”. Companies that are aware of the risks associated with social networking have strengthened their workforce with pertinent knowledge to protect themselves from this phenomenon but those who are struggling may benefit from educating their employees of the following: ·Create separate accounts that are utilized for personal and professional purposes ·Install various firewalls that are combined with the individual computer security of a software firewall program with a hardware firewall appliance that will provide protection for the threats of the social networking surge. ·Manage network settings that adjust settings which will restrict confidential information from cyber-criminals of obtaining ·Raise awareness by providing training in information security as well as concrete guidelines for appropriate usage for everyone who has access. ·Provide flexibility that allows everyone to have the opportunity to take a break and regroup in order to remain focused on the company’s goal of effectiveness (Everett, 2009) If a proactive step is taken to protect organizations from falling victim to the risks associated with social networking, they will have an increased chance and higher rate of success. Conclusion In conclusion, there are many different and important aspects that small businesses must consider when determining whether or not (or to what extent) they want to utilize social networking.Many factors such as cost, risk, and benefits must be thoroughly analyzed so that it can be decided whether the time and resources put into the social networking sites will yield the desired and realistic results.Overnight success is unlikely but when done right, Social networking can open doors for new customers and new business.Business is about establishing relationships and building clientele, both of which can be fostered by a successful advertising or recruiting campaign utilizing social networking sites. References. Anthony, Robert. Network Journal. New York: Oct 2008. Vol 16, Iss. 1; pg. 12.
Connection Journal (2009).How to Mitigate Social Networking Risks.The Business
Journal of the Greater Triad.Retrieved on August 11, 2009 at
Johnson-Elie, Tannette (2009).Managing Time Means Limiting Social Networking
Retrieved on August 10, 2009 from httpwww.jsonline.com
Jones, Louis. "What You Need to Know About Social Networks." Kiplinger's Personal Finance (2009): 87. Leary, Brent. Network Journal.// New York: Nov 2007. Vol. 15, Iss. 2; pg. 30.
Marketing, Brick (2008).Social Networking Addiction-Is It Becoming A Disease?
Retrieved on August 11, 2009 from http://social marketingjournal.com
ODV601
August 16, 2009
Social Networking for Small Businesses
By:
Julie Laube
Laura Murphy
Lisa Poulos
Lisa Ramirez
Michelle Worsham
Executive Summary
Social Networking sites are on the rise. Only a few years ago, nobody had ever heard of MySpace, Facebook or Twitter, yet today, it would be hard to find a person under the age of 99 that didn’t at least know what they are. Social networking has grown at an astronomical rate and businesses are trying to find a way to connect with people interested in their product in any way possible. Times are hard for the small business owner and it’s not often that advertising can be done for free. These sites allow just that, you can post a link or talk about your business on your page and hope that others pass it along. Hopefully everyone benefits from it. You sell your product or service and the customer gets a product or service they love from a trusted business.
This paper will focus on several different aspects of social networking sites as they relate to the small business. We will identify what social networking is, how small businesses benefit from it, investment versus return, how it has changed advertising, and risks associated with this type of exposure. Social networking is the future and is growing at such a fast pace that it is imperative for small businesses to take a look at how they are advertising and “networking”. They may decide not to utilize the resource, but it’s worth analyzing whether or not they will benefit from it.
Table of Contents
Social Networking for Small Businesses
I. What is Social Networking?
II. How Small Businesses Benefit From Social Networking.
III. Investment Versus Return.
IV. How Social Networking has Changed Advertising.
V. Risks Associated With Social Networking.
VI. Conclusion
VII. References
What is Social Networking?
Lisa Ramirez
For most employees working in an organization or aspiring to get that dream position, it was usually a matter of knowing someone who was already established in that particular company. Usually, current employees are privy to the day to day operations especially when certain positions become available within their department. Long before the vacancies are posted, individuals are usually doing several things: trying to figure out how to get the position for themselves or passing this “inside info” to a close friend or relative. This gives this person ample time to draft a resume, rehearse interview techniques, and practice salary negotiations. Over the course of several weeks, if all goes well, this individual is “hooked up” by his or her inside contact. Sometimes this can be a benefit or a detriment to that business or organization. The benefit comes from a resource being recommended by a trusted source, the current employee. The detriment could be that individual not being truly qualified to perform the job. This process still happens as far as internal postings that organizations provide internally prior to mass release. The major difference today, as it was compared to earlier times, is the method of delivery. Newspapers and job seminars were the main delivery methods for job postings. With the advent of technology, the job posting goes global almost as soon as it’s released to the general job search market.
According to a leading HRM professional, “Social media participation is an essential tool in networking with professional contacts, making new contacts, recruiting employees, and keeping in touch with the world. If you’re not participating in the top social media and networking sites, the world is leaving you behind. Why not become involved on the social media Web sites while your participation can advance your career help you obtain superior employees by enlarging your candidate pool, and enable you to easily stay in touch with coworkers and former coworkers at one location.” (Heathfield, 2009).
Human Resource managers face many challenges in the performance of their duties. HR managers should be urged to, “Develop a recruiting network for employees with skills that will become increasingly scarce. Especially as the boomers retire or seek part-time opportunities, determine where you will find the employees with technology, medical, and quality skills, as examples, that your organization will need. Various social networks exist for a variety of career fields (Heathfield, 2009). Recruiting and retaining quality personnel drives the success of an organization and its employees. Utilizing networking enables the HR to be more efficient in this process. More companies are utilizing sites such as: The Ladders, Monster, Career Builder, and USA Jobs to enhance their recruiting and selection processes.
Using the above mentioned sites and the company’s intranets enables the networking processes of information sharing as it relates to job openings, work environments, and interactions amongst the employees. Social networks such as MySpace and Facebook are slowly reinventing the way networking is utilized to seek out jobs, get information on a company, or recruit new talent. Employers have begun to embrace these tools for their own business purposes as well, using corporate social networking to foster connections between employees, share information quickly across geographically diverse offices, and establish broad recruiting circles by keeping in touch with former employees. The technology is also helping organizations expand their talent management and mentorship programs by giving workers access to a large pool of executives and coworkers, rather than the one or two supervisors with whom they would otherwise interact (“Social Networking Survey”, 2008).
Along with any new trend, there are often possible disadvantages to contend with. While there aren't yet any legal cases on point, employers should note that such searches raise privacy concerns and may reveal information about protected characteristics such as race, religion, ethnicity and medical conditions. (Also worth considering: systematic use of such sites may muddy the waters of who is deemed a job applicant for affirmative action purposes.) Until this issue plays out in the courts, Rosen's advice is this: Only search the Internet and social networking sites with prior written consent and after a conditional job offer has been made. (“Social Networking Survey”, 2008).
Networking plays a vital role in obtaining the best perspective employee for the job. Most organizational HR departments seek to hire from within to save the time and money associated with the recruitment process. Personal networking within the organization and through the use of intranet and the internet, to include social networking sites, reduces the turnover time. Most individuals have an electronic copy of their resume and most of these are posted online with one of the major job search engines. Individual job seekers across the generations are utilizing technology based networking to find the best job with the best company. Although it’s not a major push toward utilizing social networking sites, HR professionals should realize the potential for utilizing social networking sites to their advantage.
How Small Businesses Benefit From Social Networking
Julie Sullivan Laube
Many small businesses struggle both with getting started and maintaining clientele, no matter what their business type. There are many reasons for this but the primary concern is money. Advertising is expensive and trying to keep up with bigger businesses with even larger budgets is next to impossible. Often money is spent with little if any return profit and the owners are left footing the bill for yet another unsuccessful advertising campaign. They wonder what they could do for less money and more return.
There are so many ways that businesses can benefit from social networking if they will just open up to new ideas. Building link popularity, Attracting traffic, and Interaction with the public are a few that we will focus on, but are far from the only benefits. All of the opportunities listed are either free or low cost and can be done at home or from the office. Social networking sites are popping up all of the time and to miss out on using them as a resource is letting a good thing pass you by. MySpace, Facebook and Twitter are just a few that are increasingly popular. Public networks like Facebook and LinkedIn can be used for marketing, recruitment, prospecting and brand enhancement (Jones, 2009).
Building link popularity is an important aspect of any business that maintains a website. You must sell your brand or your company no matter what your niche is. Websites need good content, good search engine optimization, and good links in order to get good visibility on the web (Wallace, 2009). You could pay for this service but small businesses often can’t afford the amount that it would cost to get them listed very high on the big search engines such as Yahoo, Google or Bing. One way to get more hits on your site, and more hits moves you higher on the search engine listings, is to have links listed on social media sites. Many social media sites will allow you to include a blurb about yourself or your company and in many cases add a link or links to your sites. Once you get these various social media profiles indexed, they will count as inbound links to your main site. They create opportunities for natural links and they are free (Wallace, 2009). Your link popularity will contribute to the number of hits your site receives per day and more hits equals more sales.
Attracting traffic to your business or site is a key element of a successful business. Social networking sites allow you to browse personal sites for anyone that allows you to add them. It allows them to follow your site as well and view links that you have posted. Status updates are a common feature for most networking sites and your friends or connections can view your updates. The more recent the update, the higher it shows up on the list. If I were to post “30% off all gifts at www.mystore.com “(link made up), I could be fairly certain that someone is going to click on that link. If they add it to their favorite links, then all of their friends can view it and maybe like it too. Even if the people don’t buy every time you post something, it will drive more traffic to your store and make it more popular while raising your listing in search engines. There are other ways to get you site listed in search engines. A common method is by pay-per-click. You can pay anywhere from 1 cent to $5 or more per click (or hit) for your site to list on the first page when a potential client searches for a particular item or business. This can cost thousands of dollars per month for a successful campaign. Posting on social networking sites is free so any return, even a small one, is a profit. Another successful method of attracting traffic to your website is through YouTube. Many companies post a video, advertising their product and include links to their site. Depending on what you are selling or advertising, this may work for you.
A third benefit to small businesses is interaction with the public. People like to know who they are giving their business to. Trust is an important part of getting (and keeping) return customers. A relationship is vital to ensuring your success. Show your expertise to potential customers, employees and business partners. For example, if your small brick-and-mortar business sells auto parts, answering members questions in a car enthusiasts forum will build your reputation and likely lead to more sales (Go, 2008). Be sure to us the right site for your business. To maximize their interaction with interested individuals there must be targeted contact to the right kind of person. For instance, one shouldn’t advertise furniture on Myspace. That site in particular has a younger group of people that are members. On MySpace, music and movies are more popular. Facebook draws a slightly older crowd and may be a more realistic advertising forum for products that older more established individuals (homeowners) might be interested in viewing. YouTube draws people interested in “how to” videos for arts, crafts or other specialized products. Together We Served (a military social networking site) might be a good target audience for realtors, furniture movers, or military supply services since people on these sites tend to move every couple of years. If you establish a good relationship with the right people and gain their trust in your service or product, they will continue to support you and your business for years to come.
Social networking benefits small businesses in many ways. Because of the low cost and the ability to reach people across the globe, it has become one of the number one ways to get new customers. Whether you are attempting to drive traffic to a specific website, draw customers to a brick-and-mortar store or business, or just trying to interact with the public to get more interest in your product or service, social networking can improve sales or increase traffic.
Investment Versus Return.
Lisa Poulos
Social networking for small businesses presents an opportunity for lesser-known companies to publicly market themselves at a generally lower cost than that of traditional marketing methods. Especially in the case of small businesses, where personal interaction is essential, social networking offers a means by which smaller firms can successfully compete with larger, more aggressive companies within the same industry. With the ever-expanding methods of social networking, however, it is imperative that small businesses weigh the costs versus the benefits of each type of social networking in order to most effectively utilize this medium. In other terms, “one of the challenges of mastering social networking is determining where to invest your resources--time, energy and possibly capital, too” (Weston, 2008). Here, several of these forms of social networking and their potential uses are examined to determine the value of their return on investment for the small business operator.
One of the most popular uses of social networking sites is that of marketing or branding businesses. In fact, “IDC, the Massachusetts research firm […] reports that [social networking] will grow to a $428 million market by 2009” (Leary, 2007). Using social networking for marketing purposes can be as simple as hosting an online profile at a social networking site like Facebook, or as complex as developing a highly customized profile site that allows users a high degree of interaction and ability to connect virtually with the firm. Blog sites like Twitter allow firms to have a dialogue with their potential markets, and gain invaluable feedback and ideas for product development. The benefit of using social networking sites as a method of marketing a business is that it allows firms the flexibility to target a specific market through niche sites, or conduct mass marketing via more general-purpose social networking sites. With many of these sites offering thousands, if not millions, of members to connect with, firms literally have an endless database at their fingertips to peruse through for potential customers and business connections. With these potential benefits in mind, small business operators must also remember that they do not control the content of public sites, and must be aware of the reputations of the sites they are associating themselves with. In the case of small businesses operating in the business to consumer market, it is recommended that they use social networking at a minimal cost, via all-purpose web sites such as the aforementioned Facebook and Twitter. For the more complex, yet still small, business-to-business operations, it is advisable to invest in some customization in an effort to more efficiently reach the firms’ target markets. In this way, less time and energy is wasted on communicating a message to an audience unlikely to act on the communicated messages.
Social networking can also be used in sourcing talent. Sites such as LinkedIn and Ladders.com offer databases chock-full of potential job candidates across the globe. The benefit of most of these sites is that they are free or very inexpensive, particularly when compared to costly recruiting web sites such as Monster or CareerBuilder, or other means of recruiting such as advertising, job fairs, employment agencies, or the use of headhunters. Additionally, because of the connectedness that exists within these sites, once a specific area or specialty has been located, a multitude of similar contacts is undoubtedly soon to follow. Because of the vast number of users and information available, particularly on these public sites, it is best for small businesses to proceed with caution; “don't go on a blitz and invite dozens of strangers into your connection list this dilutes the usefulness of your contacts and results in a steady stream of unwanted invitations” (Anthony, 2008). Sourcing talent via social networking is most effectively accomplished through a methodical approach where the user hones in on the most highly concentrated area of potential employees, and develops meaningful connections. This may occur after extensive searching through irrelevant material and information, but can make up for the time spent once the appropriate connections are made.
The previous forms of social networking have primarily existed in the external realm. Many firms also make use of internal social networking, which allows firms to connect with employees and suppliers. Fewer free or public sites exist to support internal social networking, making it more costly due to the need for detailed customization. The purpose of internal social networking is to derive the most value out of employees and suppliers. Firms do this by connecting employees with one another in an effort to brainstorm new ideas, build camaraderie, and promote retention of valued employees. With suppliers, firms can promote long-term relationships by developing customized social networking sites that may lead to higher switching costs, and a feeling of loyalty to the firm. For both employees and suppliers, internal social networking areas allow individuals to voice their opinions and have a chance to be heard within the company. The benefits of such an internal social network are far-reaching, but only worthwhile when the firm’s budget is accommodating. Potentially one of the most costly uses of social networking, internal forums, blogs, and opportunities to communicate virtually offer advantages that are difficult to match through other means.
The use of social networking has become an increasingly prevalent resource in the marketplace. So prevalent in fact, that “one network-weary man created an application called Networking, which measures how much time you spend on social networking sites and how much money you could have earned in that time. The idea is to choose networks that allow you to interact with the kind of people that could possibly help you or your business in some way” (Leary, 2007). The ultimate purpose of social networking remains: to promote revenue and success for one’s business. With this goal in mind, small businesses must continually consider the advantages and disadvantages in which forms of social networking they use, and how they use them, if they intend to rely of this new medium. Depending on the specific firm’s needs, budget, and line of business, research and experience will help best determine which mix of social networking will best suit the firm’s needs and help achieve its goals.
How Social Networking has Changed Advertising.
Michelle Worsham
Newspapers, magazines, radio, television, and the Yellow Pages are all forms of advertisements regardless of the size of the business. Advertisements are used to promote business. In the past and still used today, advertising was more prevalent through newspapers, magazines or on some paper format for distribution. The publishing of such advertisements on newspapers and radios are inexpensive and reach a mass audience. Advertising on magazines, television and the Yellow Pages can be costly however; can reach a magnitude of an audience. Some advertisements are done outdoors which can have a high impact from onlookers and the most instant advertising is done through the use of the internet. Regardless of all these components of advertising, people might be the most highly effective form of advertisement. What we wear, eat, drive, live, attend throughout our daily lives, others are constantly paying attention. With the internet designed with the capability to interact with an infinite number of people or groups, fads and trends are created. Social networking can expand the visibility and exposure of such fads or trends when commenting through different internet sites.
As the popularity of technology arises with hyper links and unlimited connectivity, many businesses have taken advantage of advertising through social networks online. Some forms of social networks include, MySpace, Facebook and LinkedIn, to name a few. Since social networking is more of a real-time form of connection, resources and tools are now accessible at will for use at any given time. With the use of social networks, it has changed the way people communicate, stay connected and keep up with family, friends, or other professionals around the world. The traditional way of advertisements on paper needed to be published, printed, distributed and sold before the information was received in the hands of the consumers. Although this form of advertisement is inexpensive, the downfall is it could be outdated by the time it reaches the audience. Today’s society is about having instantaneous results and with the use of today’s technology, advertisements are at the consumers fingertips. “For smaller businesses, social networking isn’t a shortcut to success. However, it offers an intriguing platform for customer, employee and supplier relationship management that can serve not only existing connections but also help to identify new prospects.” Weston (2008). Businesses can now advertise directly on social networks where consumers no longer have to navigate to other sites for services. This immediate action and response has revolutionized a new trend in the social networking arena. For small businesses, utilizing the social networks for less cost, less time consuming and instant marketing is an efficient process as opposed to customizing their own community. One of the challenges businesses face with this exposure is the need to constantly create new business models to keep up with the changing, ever improving needs and demands of consumers. The accessibility and cost effective use of advertising on social networks will bring added competition for marketers.
Networking sites such as MySpace and Facebook are one of the top referring web sites for many retailers. These sites attract end users from all aspects of diversity. Most of these social network sites are popular to students, business professionals and others where posting open positions can gain visibility. Where companies spend high dollars in recruiting costs, using social networks through the internet can save cost by paying only the basic membership fees. “People aren’t just looking for what you offer every day, they may appreciate a more human or differentiated message. Maybe they’ll subscribe directly? Maybe they will forward to someone else or, better yet, expose you to an entire audience via link? Maybe they’ll buy something?” (Frerecks, 2009) More businesses have started to advertise on social networking sites to help promote their business. Students are also using these sites to post their resumes and companies use these sites for posting open positions. There are business websites such as LinkedIn which connects business professionals. Designated blogs and other sites have been developed for people to exchange information instantly and have unlimited connection.
“One of the challenges of mastering social networking is determining where to invest your resources, time, energy and possibly capital, too. As you gain personal experience using Facebook, LinkedIn or dozens of other networks, you can begin to identify, and ultimately prioritize, the universe of possible initiatives to enhance your career, brand, staff, and revenue.” Although advertising on social networks can invite many viewers which can potentially become customers, suppliers or even employees, sometimes advertising on social networks can damage the face of your business. Someone can blog about a bad experience they may have experienced linked with your business and additional comments from followers can deter others from viewing your advertisement. Followers of such social networks can either help build your business or can help bring it down. In a 2002 article, Zahorsky discussed the 6 Laws of Small Business Advertising Success: 1.) Use one message where your small business advertising needs to quickly communicate its core message in three seconds or less. 2.) Add credibility where the claim of your ad should be real and credible otherwise if the customer does not perceive the ad to be truthful, it can be a waste of ad dollars. 3.) Test everything such as use coupons, codes, and specials to measure the headline, timing, and placement of your ad. 4.) Be easy to contact by ensuring that every single brochure, box, email and all company literature should have full contact information including; website and email address, phone and fax numbers, and company address. 5.) Match ads to target by making sure that the ad speaks to one target market only. 6.) Create curiosity making note that successful business advertising does not sell a product rather it creates an ad that generates interest and makes the customer want more information. In theory, social networking sites can serve as a beneficial inexpensive opportunity for advertising any size business if you plan ahead, determine your target and set goals before experimenting. There are many different social networks available for meeting people, getting advice or opinions, understanding the language/custom/design and obtaining referrals. Using these tools and resources can help you build a foundation on which you can promote your business. With interaction and involvement within the networks, businesses can determine through experience which networks will be more effective for their particular business. This can also help small businesses gain attention and exposure to larger audiences.
Risks Associated With Social Networking.
Laura Murphy
In today’s harsh economic times, small businesses are utilizing the power of social networking more than ever to build a formidable online presence while maintaining a clear-cut position against their larger competitors. Organizations that posses this level of determination have become so consumed with the idea of exploring this widespread phenomenon that they unintentionally overlook the risks and threats involved with conducting business in this manner. Cathy Everett, a principal security consultant states that, “as a standalone item, information security would be five or six on a list of 10. However, as part of other strategies - such as data loss prevention - they would be number one or two as they provide an easy way for unregulated information to leave the environment.” The potential danger of data leakage is serious because there are often times when vital information is exchanged between more than one party who may not be aware of the confidential factors involved and unintentionally disclose pertinent information that could weaken the establishment’s reputation. According to Everett, “The high level of redundancies that inevitably occur during a recession also increase the likelihood of malicious activity, which at the very least could lead to the firm’s reputation being damaged as a result of slander. While it is possible to contact the site carrying any sensitive or disparaging information to request that it be removed, the problem is that such data can continue to linger in cyberspace as third parties may have undertaken a screen dump or copied information onto their own sites”. Another worrisome consideration for social networking relates to viral infections. This is critical because certain sites may comprise internet applications that allow users to upload files and a potential hazard may include downloading malicious codes from third parties in the form of minute applications or plug-ins that are indistinctively included in the terms and conditions for use consenting to the deployment of spyware.
Time management is a major problem for businesses that have become consumed by social networking, e-mail and other tools in the expanding Internet world. While social networking can be a useful means for constructing and making business connections, it’s simple to lose sight of the business reasons for social networking. According to Johnson, “the average person has thirty to one-hundred projects going at one time and with the time spent on social networks, researching on the Web, reading blogs and checking e-mail, it’s becoming more difficult to tend to real-life responsibilities”. The accessibility of the world-wide web for small businesses has been a tremendous asset but some may take this opportunity to far and find themselves trapped in the addiction of communicating strictly via internet. Businesses that do not take the time to invest in the alternative means of social networking may soon realize that their employees are heading down a path of becoming obsessed and cannot stop checking their business contacts on Facebook or Lindekin. Brick Marketing states that, “this is and has been an occurring problem for those who have the desperate need to stay connected with others they barely know or just met and can’t function effectively because they are glued to their mobile device responding and updating lists. These individuals are oblivious to how bad it is affecting their lives and responsibilities they have in their personal and professional lives”.
Companies that are aware of the risks associated with social networking have strengthened their workforce with pertinent knowledge to protect themselves from this phenomenon but those who are struggling may benefit from educating their employees of the following:
· Create separate accounts that are utilized for personal and professional purposes
· Install various firewalls that are combined with the individual computer security of a software firewall program with a hardware firewall appliance that will provide protection for the threats of the social networking surge.
· Manage network settings that adjust settings which will restrict confidential information from cyber-criminals of obtaining
· Raise awareness by providing training in information security as well as concrete guidelines for appropriate usage for everyone who has access.
· Provide flexibility that allows everyone to have the opportunity to take a break and regroup in order to remain focused on the company’s goal of effectiveness (Everett, 2009)
If a proactive step is taken to protect organizations from falling victim to the risks associated with social networking, they will have an increased chance and higher rate of success.
Conclusion
In conclusion, there are many different and important aspects that small businesses must consider when determining whether or not (or to what extent) they want to utilize social networking. Many factors such as cost, risk, and benefits must be thoroughly analyzed so that it can be decided whether the time and resources put into the social networking sites will yield the desired and realistic results. Overnight success is unlikely but when done right, Social networking can open doors for new customers and new business. Business is about establishing relationships and building clientele, both of which can be fostered by a successful advertising or recruiting campaign utilizing social networking sites.
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