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LinkedIn: Bridging the Global Employment Gap - Comprehensive Notes

LinkedIn: Bridging the Global Employment Gap

Introduction

  • In 2016, LinkedIn was the largest online platform connecting people to job opportunities and training.
  • Jeff Weiner, CEO of LinkedIn, faced the challenge of innovating and co-creating a stable online platform to serve a global business community amidst rapid technological and structural changes in the job market.
  • The emergence of technologies like cloud computing, augmented intelligence, and platform technologies transformed organizational strategies and career planning.
  • Microsoft acquired LinkedIn in 2016, aiming to transform how people work and plan their careers.
  • In September 2013, Weiner introduced the LinkedIn Economic Graph, a digital map of the global economy.
  • The Economic Graph aimed to include profiles of the global workforce, skills, jobs, employers, and educational institutions.
  • LinkedIn faced challenges in realizing the vision for the Economic Graph.

Background: The Employment Problem

  • In 2016, out of three billion people who wanted to work, only 1.2 billion had "good jobs" (steady, full-time employment).
  • Underemployment and lack of employee engagement were significant issues.
  • Only 13% of workers were engaged, while 63% were not engaged, and 24% were actively disengaged.
  • Almost 200 million people lacked the basic skills for the digital economy.
  • Work on online platforms grew by 22% annually, compared to 3% for offline jobs.
  • Technology platforms using augmented intelligence were expected to displace many current jobs.
  • Examples: Robot assistants for legal searches, virtual assistants for customer interaction, and virtual drivers for commercial driving.
  • Technology would also create new jobs and services, and LinkedIn's Economic Graph aimed to connect these innovations.

LinkedIn’s Foundations

  • Founded in 2003 by Reid Hoffman, Allen Blue, Konstantin Guericke, Eric Ly, and Jean-Luc Vaillant.
  • Core values focused on professional identity, insights, and ubiquity.
  • Professional identity was captured in user profiles, search options, and networking features.
  • Professional insights were available on the home page, SlideShare, LinkedIn Today, groups, and through LinkedIn Influencers.
  • Ubiquity was ensured through mobile and API development.

LinkedIn’s Financials and Microsoft Acquisition

  • LinkedIn's net revenue almost doubled between 2013 (1,529 million) and 2015 (2,991 million).
  • Talent Solutions (recruiting services) accounted for 62% of revenue.
  • Marketing Solutions and Premium Subscriptions accounted for the remaining 38%.
  • Individual membership grew from 277 million in 2013 to 414 million in 2015.
  • Microsoft acquired LinkedIn in 2016 for 26.2 billion.
  • The acquisition provided Microsoft with a new revenue source and access to LinkedIn's professional users.
  • LinkedIn gained capital and opportunities to integrate with Microsoft's Office products and services.

LinkedIn Economic Graph

  • The Economic Graph was a digital map of the global economy.
  • It aimed to include profiles of the global workforce and their skills, all open jobs, employers, and educational institutions.
  • It was designed to intelligently connect individuals to other individuals, groups, and organizations.

The Vision

  • Weiner's vision was to digitally map the global economy, identifying connections between people, jobs, skills, companies, and knowledge to spot economic opportunities.

  • Reid Hoffman and the founders created a platform to help people leverage their professional networks.

  • LinkedIn's long-term vision was to digitally represent every economic opportunity, required skills, company profiles, and professional profiles in the Economic Graph.

  • Blue encapsulated the vision: “LinkedIn’s vision is to create economic opportunity for every member of the global workforce . . . not just white collar workers with four-year college degrees. Everyone.”

Components and Benefits

  • The Economic Graph contained information about employment history, skills, available jobs, and connections.
Benefits to Individuals
  • Professionals can access information about available jobs, required skills, and relevant connections.
  • They can find mentors, experts, and members of their networks for support.
  • Professionals can identify skills gaps and locate training resources.
Benefits to Organizations
  • The Economic Graph allows companies to recruit the best talent, including passive job seekers.
  • Recruiters can better understand the market for specific roles and find people with socially verified reputations.
Benefits to Educational Institutions
  • The Economic Graph can help educators understand skills gaps and find employer partners.
  • LinkedIn Learning can show in-demand fields and help individuals align their education with market needs.

A Smarter Economic Graph

  • LinkedIn's Economic Graph was designed to continually update and revise information.
  • Professionals update their profiles regularly, providing a basis for LinkedIn's knowledge of skills, demand, and skills gaps.
  • This allowed LinkedIn to maintain a stable employment platform amidst continuous market and workforce transformation.

Context for the Economic Graph

The Emergence of the Entrepreneurial Mindset

  • Hoffman advocated for self-reliance and connecting with others for mutual benefit.
  • People needed to think like entrepreneurs, creating value, getting paid, learning skills, and enhancing employability.

Developments in Technology

  • LinkedIn’s Economic Graph was enabled by advancements in cloud computing, digitized data, augmented intelligence, mobile computing, platforms, and software applications.

  • Ginni Rometty described the world being rewritten with technology-enabled global innovation and interconnectivity.

  • Augmented intelligence enhances human expertise.

  • The cloud connects public and private information.

  • Platforms enable infinite applications to create new services and products.

  • Data, especially "dark data," creates value when provided in the right form and at the right time.

  • Cognitive systems understand, reason, and learn from unstructured data.

  • Mobility allows geographically dispersed workers to access resources from any device.

  • The cloud enables collaborative innovation and the rapid assembly of cognitive applications.

  • Systems can match individuals with open positions.

Platforms as the New Institutions

  • The Markle Foundation partnered with LinkedIn to increase access to opportunity by prioritizing skills and removing barriers.
  • LinkedIn connects education and employment.
  • Technology enables new paths and opportunities in the digital economy.
  • Platforms are the breakthrough technology and enablers of the moment.
  • People need to adapt to rapid changes with an agile, entrepreneurial mindset.
  • The Economic Graph promises to help people adapt to change with new guidelines and best practices.

The Challenges

  • How to innovate and co-create a stable online platform while dealing with structural inhibitors, evolving skill sets, and rapid transformation of work itself.
  • How to expand to include less educated adults and connect people in regions with different business cultures.
  • How to coordinate open-source information among stakeholders who may not want to disclose their information.
  • How to define “soft skills” and connect people with good soft skills with hiring managers.
  • Recruiters find it difficult to find people “with the right ‘soft skills’ or personal attributes.”
  • In LinkedIn’s study of 291 U.S. hiring managers, the managers agreed it was “hard to find people with the right soft skills for 59 per cent of their open jobs.”