14 December 2025

Executive Summary (TL;DR)

Social capital, the networks, relationships, shared norms and trust that bind people,  is a strategic asset. McKinsey research describes social capital as the glue that holds organizations together and notes that teams with strong connections get more work done faster and are more engaged. Employees who feel connected are two times more likely to have career sponsorship and one and a half times more likely to feel belonging and engagement. Yet workplace networks have shrunk since the pandemic, and less than half of employees actively build relationships. This article outlines why founders need social capital and how to cultivate it.

Why social capital matters

Social capital comprises the networks and relationships that enable individuals and organizations to thrive. McKinsey calls it the glue that holds organizations together. When teams feel connected, they are more engaged, willing to go beyond minimum requirements and more likely to recommend their company to others. In knowledge‑intensive industries, where collaboration and information flow are critical, social capital can be more valuable than financial capital.

Research cited by McKinsey shows that employees with strong networks enjoy significant advantages: they are twice as likely to have career sponsorship, one and a half times more likely to feel belonging and one and a half times more likely to be engaged at work. These employees also receive more opportunities, knowledge transfer and support. For founders, social capital opens doors to investors, mentors, talent and partnerships.

The social capital deficit

Since the onset of the COVID‑19 pandemic, workplace connections have eroded. McKinsey’s survey of 5,583 US workers found that more than three‑quarters of employees in traditional roles are connecting with others less frequently and have smaller networks. Professional networks have shrunk, particularly for women and frontline workers. Only 24% of respondents focus on reconnecting with old contacts and 28% focus on building new relationships. Meanwhile, senior leaders are far more likely to invest in networking than frontline employees. This disparity risks widening the influence gap and limiting mobility for those without networks.

Motivation, access and ability

McKinsey suggests assessing social capital along three dimensions: motivation, access and ability. Motivation asks whether employees are encouraged to build relationships. Access assesses whether they have opportunities to connect with diverse networks. Ability considers whether they have the time, resources and skills to build and maintain relationships. Organizations can strengthen social capital by addressing all three.

Building social capital: Strategies for founders

1. Lead by example. Founders should priorities relationship building and signal its importance. Share stories of how networks helped you find early investors or hire key talent. Encourage employees to attend industry events, join professional communities and connect with peers.
2. Create networking opportunities. Embed network‑building into performance evaluations and development plans. Host cross‑functional projects, mentor circles and internal forums where employees can build relationships beyond their immediate teams. Offer stipends or time allowances for attending external conferences or professional associations.
3. Invest in mentorship and sponsorship. Provide access to mentors who can advise on career development and sponsors who advocate for high‑potential employees. Sponsorship is particularly important for women and underrepresented groups who may have smaller networks.
4. Use digital tools wisely. Remote work has made spontaneous hallway conversations rare. Leverage collaboration platforms, virtual coffee chats and internal social networks to foster connection. Encourage “randomized coffee trials” where employees are paired for informal conversations.
5. Measure and adapt. Use surveys and network analysis tools to understand the state of social capital in your organization. Look for gaps across gender, job level and function. Experiment with interventions and evaluate their impact on engagement and performance.
6. Encourage giving, not just taking. Social capital grows when individuals contribute to others without immediate expectation of return. Encourage employees to share knowledge, introduce contacts and offer support. Reciprocity naturally follows, strengthening networks over time.

Bridging differences

The survey also highlights disparities: women and frontline workers report less growth in networks than men and senior leaders. Founders must be intentional about inclusivity. Provide safe spaces where underrepresented groups can network, and ensure that mentoring programs pair employees across hierarchies and demographics. Recognize that non‑traditional workers, such as freelancers, may invest more in networking out of necessity; learn from their practices and integrate them into your organization.

Social capital as strategy

For founders, building social capital isn’t optional. It accelerates information flow, surfaces opportunities and strengthens resilience. Consider how informal networks enabled many companies to pivot during the pandemic,  employees leveraged relationships to share insights, source supplies and solve problems quickly. Without those ties, organizations moved slower and lost competitive ground. By investing in networks, founders build an architecture of influence that supports growth and innovation.

Social capital is the currency of influence. Research shows that connected employees are more engaged, sponsored and likely to belong, yet workplace networks have contracted since the pandemic. Founders who invest in building networks, through mentorship, cross‑functional collaboration and inclusive opportunities, create organizations that move faster and adapt better. Social capital isn’t a nice‑to‑have; it’s a strategic advantage.

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