LinkedIn as a Business Tool: Uses and Perceptions

I received 567 replies with substantive answers to these questions, many of which also included additional thoughts and comments about LinkedIn. Although not statistically representative of all LinkedIn users, the respondents comprise a large, diverse sample of professional people representing a range of backgrounds and age groups, mostly based in Canada. The exercise has provided interesting and valuable insights into the way that a diverse sample of professional people are using this popular social networking site, and their thoughts about its value, which are expected to be of interest to other consultants. The main findings are shared below:

Levels and Patterns of Use
The majority of respondents to this survey were categorized on the basis of their answers as either "fairly active" or "fairly inactive" users of LinkedIn, defined in the following terms:

• Fairly active —regularly maintains and updates their profile and actively uses their LinkedIn network for purposes such as job or contract searching, recruitment or seeking advice from experts; beyond this, some users participate in multiple groups while others have no active group membership.

• Fairly inactive —maintains an account but primarily responds to rather than initiates contacts; some primarily use LinkedIn as a vehicle for their public CV. May subscribe to groups but don't actively participate. Some in this category express skepticism about the value of social networking and prefer more traditional communication methods.

Small minorities were characterized as very active users; passive members who are registered but don't use the site, or "resistant" members who expressed dislike of the site.

Perceived Business Uses
The survey revealed that LinkedIn is being used in five main ways as a professional or business tool:

1. A Directory of Contacts
Since members generally update their profiles when changing jobs or contact details, LinkedIn is seen as a useful, easily accessible directory with up-to-date and accurate contact information. It's also regarded as helpful in enabling people to keep informed in a passive way about their business contacts and their career moves, to facilitate keeping in touch for professional or social reasons.

2. A Professional Network
LinkedIn provides professionals with valued opportunities to participate in extensive communities of people with similar backgrounds and interests. Their networks can be used to obtain introductions through mutual contacts for purposes such as job-seeking or marketing business services. Many people use their LinkedIn network to find and get quick responses from relevant experts when needing advice or information, or passively promote themselves and their organizations by positioning themselves as experts on topics.

3. Recruitment And Job Search
LinkedIn was found to be very widely used by recruitment agencies, direct recruiters and independent consultants looking for job candidates, sub-contractors or partners. Many regard the site as a reliable source of information on the professional backgrounds of individuals, with the reference/testimonial feature seen as particularly useful; potential candidates can also be assessed on the strength and quality of their personal network. Numerous examples were cited by respondents of successes in placing job candidates identified through LinkedIn, or of finding employment or securing contracts via the site.

4. Marketing And Promotion
A significant minority of individuals in the sample reported that they use LinkedIn actively and extensively to market or promote their business, products or services or create their brand. Examples of this include advertising formally on LinkedIn; using the site to announce events or publications, and posting blogs to one's profile. More generally, many respondents indicated that it has become important to their professional credibility to have a LinkedIn account, even if their day to day use of the site is very limited.

5. Research And Information
As well as providing a quick and easy way to identify experts or specialists in a particular field who can be contacted for information, LinkedIn is being used more extensively and systematically by some members for business and competitor research. Examples of this cited by the survey respondents included identifying emerging companies or strong performers in a sector; finding out about potential acquisitions, or investigating prospective clients, employers, partners or employees. LinkedIn networks also provide readily available sample frames and access to selected groups or experts for research purposes. Finally, many people use LinkedIn and its communities to keep up with developments and issues in one's industry, profession or other area of interest.

Participation in Groups

It was found that members join and participate in LinkedIn's Groups for the following main reasons:
• To be kept informed of and contribute to discussions.
• To find out more about a particular topic or issue.
• To find a new job or contract work.
• To maintain contacts.

However, there was a mix of views on the usefulness of these online communities. Overall, levels of dissatisfaction with LinkedIn groups were found to be fairly high; many reported a perception that the quality of discussions in groups is poor and felt that groups are primarily being used for self-promotion or marketing purposes. However, some reported considerable benefits from their membership of LinkedIn communities, which included staying informed of developments in their professional field; being able to seek or provide relevant advice, and securing jobs or contracts.

Concerns about LinkedIn
A significant minority of respondents expressed at least some negative views or concerns about LinkedIn, and the reasons given fell into two main categories:

• Misuse or abuse —Some were concerned about a perceived high risk of fraud or scams using personal information posted on the site; others reported that they had experienced abuse such as recruiters falsely telling people that they had been referred to them by LinkedIn contacts.

• Ineffectiveness —Some expressed the view that LinkedIn is too impersonal compared with traditional means of networking, or indicated that it is too time-consuming to use and yields little concrete benefit to them.

Conclusion
Overall, the results of the survey indicate that there are many opportunities for people to use LinkedIn to add value to their professional and business lives. However, many professionals are not currently using LinkedIn to its full potential, due to time pressures or a lack of awareness of its possibilities. In particular, the survey revealed a widespread perception that a significant time commitment is required to fully reap the benefits of LinkedIn membership. Additionally, some people are being deterred from using LinkedIn because of real or perceived abuse or misuse of the site by other members.

Harold Schroeder is founder of Schroeder & Schroeder Inc., a Toronto-based firm that 'specializes in the art and science of transformation.'  The author can be reached at harold@schroeder-inc.com.