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The Cost of Not Entering into Social Media – How it Hurts Your Company (Part Three)

January 3, 2009

At the beginning of this conversation, we entered into a discussion of the fact that several companies have been questioning the “benefits” of entering into social media, and that many were still going to take a “wait and see” approach before delving in.  Many of the objections being raised were based on false assumptions. Social Media is too new. No one is really using these platforms. My customers aren’t using these platforms. Throughout this series, we’ve been dispelling these myths, and shaping the discussion around the following – What will it actually cost you and your company if you don’t engage in social media?  The answers are these so far: market share and sales, new business acquisition, your existing customers, and now we come to the next cost – loss of your internal talent, and the ability to recruit employees in the future.

Maybe this isn’t a worry for you if you are one of those companies that are laying-off staff this year. Why did you get to that point?   Is it truly just the panic of the economy? Why are other companies thriving and surviving? Are your marketing and sales teams allowed to utilize the best possible tools to achieve their goals?  Are you still clinging to traditional media and the cost it entails? Social media tools are very cost-effective and can turn that around for you, yet I digress, that will be covered fully in part four.

So back to the topic at hand – loss of your existing talent and your ability to recruit new talent. In the much quoted book, First, Break all the Rules, there was an extensive survey citing the top reasons good employees leave their employers. Three of those top reasons include the lack of their company to innovate, communicate, and empowering & incorporating these employees in the running and growth of the business.  How do your employees feel about your company? What is their perception of your ability to innovate, etc?

Will your company be able to attract talent in the future?  Over 64 million workers will exit from the workforce by the year 2010; this puts employers in a talent deficit dilemma. The pools they have to dip from are young men and women from ages 22-30. These employees operate on principles of openness, participation and interactivity. If a company’s technology infrastructures, including the intranet and technology platforms, do not encourage free communication, innovation, interaction and collaboration, it misses a big opportunity. Worse, it alienates these younger, internet-savvy employees.

Can your company afford this side-effect of not entering into social media?

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