One of the most intriguing demographic developments in today’s marketplace is that the economy is expanding while the work force is declining.

Social Networking in the Enterprise: What’s the ROI? describes two popular solutions: to outsource or physically relocate qualified candidates. However, another approach that is gaining momentum is the implementation of  a social networking community. If you are directly or indirectly involved in your company’s efforts to keep a healthy employee retention rate, it’s time to look at the potential ROI of a social network inside your firewall. The article states that the replacement cost of an entry-level employee makes up 30-50% of their annual salary. A private social network can provide a low cost solution by giving employees a common space where they can interact and share knowledge. By connecting workers through personal profiles, polling and instant messaging, a business leader can identify organizational strengths and areas where employee dissatisfaction is high.

The SSN Take: Let employees blow off steam in house, then figure out how to fix it.

David Thimme, March 10, 2010

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