A new study by Empower highlights the powerful role personal networks play in influencing both career progression and financial stability for many Americans. The “Network Effect” research reveals that one in three Americans attribute their current job and salary to the strength of their personal connections. This impact is particularly pronounced among Millennials, with 40% crediting their professional achievements to networking.
The findings suggest that the majority of Americans believe in the value of their social ties as a crucial factor in their financial and career success. Nearly 60% of respondents agree that their connections significantly shape their opportunities for career advancement, pay raises, and promotions. Furthermore, half of the respondents view using personal relationships to achieve these outcomes as a savvy, necessary step rather than a mere advantage.
Six in 10 Americans believe that the strength of their connections is key to success, from career advancement to pay and promotions. Half of people (50%) say it would be naive not to take advantage of personal connections. Some 75% say it’s important to use your network to help others, and half of Americans say they’ve actively helped others get a job (53% overall, 61% Millennials).
Rebecca Rickert, head of communications at Empower, emphasized the influence of networks on unlocking moneymaking opportunities. “The ‘Network Effect’ is real, and your dream salary may be one connection away,” she noted. Rickert highlighted that many people consider investing time and resources into building networks a form of paying it forward, which ultimately brings returns in the form of career benefits and financial stability.
Beyond career advancement, the study shows that personal networks are playing an increasingly vital role in supporting financial well-being, particularly among younger generations. One-third of Americans report that they have had to rely on their personal network for financial support, with this number rising to 41% for Gen Z and Millennials.
On average, individuals who seek financial help from their personal connections receive approximately $390 per month, amounting to nearly $4,700 annually. Many are relying on these funds to cover essential living expenses such as rent, mortgage payments, and groceries. Additionally, 30% of respondents admit to receiving financial assistance from their parents after turning 18, with 45% of parents reporting they continue to provide support to their adult children.
While relying on personal networks for financial help is common, it also brings feelings of embarrassment for many. Half of the study’s participants expressed discomfort about having to lean on others for money, with 79% believing that financial independence is crucial. Despite these sentiments, 57% of respondents reported they are actively striving to achieve financial independence but face barriers such as rising inflation and increased living costs.
Empower’s research also highlights significant generational disparities in the financial challenges faced by Americans today. Some 40% of respondents believe that their generation is at a financial disadvantage compared to previous generations, with this sentiment being particularly strong among Gen Z (54%) and Millennials (55%). In contrast, only 23% of Baby Boomers shared this view, highlighting a stark contrast in generational experiences regarding financial stability.
Keeping up with rising costs and societal expectations also remains a challenge for many Americans, with 23% admitting to spending more than they earn in order to maintain appearances. This trend is more pronounced among Gen Z, 33% of whom acknowledge overspending to “keep up with the Joneses.” Additionally, men are more likely to feel this pressure compared to women, with 27% of men reporting overspending compared to 19% of women.
The “Network Effect” extends to educational opportunities as well, with more than 20% of Americans receiving financial assistance from their network for educational purposes. However, 27% of respondents also reported needing financial help due to career choices that didn’t align with their education levels or due to holding low-paying jobs. Interestingly, only 7% of Americans reported receiving a legacy admission to college, further demonstrating that while personal connections can open doors, they do not guarantee educational advantages.
Beyond education, personal networks continue to support individuals throughout their careers. One-quarter of Americans reported receiving career-related assistance from their parents, including mentorship, professional introductions, and development opportunities. This support has been especially beneficial for Millennials, 20% of whom have secured freelance work opportunities through personal connections.
Empower’s study also highlights the reciprocal nature of networking, with many Americans recognizing the importance of using their connections to help others. Three-quarters of respondents believe it is important to leverage their personal networks to assist others, and half have actively helped someone secure a job. This trend is even more common among Millennials, 61% of whom have used their network to assist others in finding employment.
Acts of kindness within personal networks also extend beyond career assistance. Two-thirds of respondents said that paying it forward by helping others in any capacity increases their happiness, and 60% have extended generosity to strangers by performing small acts, such as paying for someone else’s meal or coffee.
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