Career ladder formed by interconnected network nodes

Cracking the Code: How Connections Really Help You Climb the Ladder

Nico Varela in Business & Economy December 2025 • 5 min read.

"Is it who you know, or what you know? New research reveals the surprising truth about the role of connections in promotions and success."

We’ve all heard it: “It’s not what you know, it’s who you know.” But how much truth is there to this age-old saying, especially when it comes to career advancement and other forms of success? While talent and hard work are undoubtedly crucial, the role of connections—those networks of people you know and who know you—can be a significant, yet often misunderstood, factor. Are connections simply a vehicle for favoritism, or do they actually provide valuable information that helps decision-makers identify the best candidates?

New research is shedding light on this complex dynamic, moving beyond simplistic notions of “good” or “bad” connections to understand the nuanced ways in which these relationships influence outcomes. The traditional approach to studying connections has often relied on measuring quality long after someone has been promoted, received a grant, or published a paper. This method attempts to determine if those who benefited from connections were, in fact, more deserving based on later performance. However, this approach is limited. It’s difficult to accurately measure 'true quality,' and it's almost impossible to separate the impact of the connection from the individual’s inherent abilities and subsequent growth.

A groundbreaking study offers a fresh perspective, using data collected at the time of key decisions—like promotions—to analyze the impact of connections. This innovative method distinguishes between two primary benefits of connections: information and favors. By understanding how these mechanisms work, you can better leverage your own network and navigate the often-opaque pathways to success.

Decoding the Two Sides of Connection: Information vs. Favoritism

Career ladder formed by interconnected network nodes

Connections can be advantageous for two main reasons. The first is information. Your network can provide valuable insights about your skills, projects, or potential. This information can help recruiters, juries, or editors make better, more informed decisions. Your contacts can vouch for you and give you an edge if your quality is truly present. However, the opposite is also true. Your network can also influence decision-makers to unduly favor connected candidates, potentially leading to suboptimal choices. This is often referred to as nepotism.

Distinguishing between these two effects is crucial because they have opposite implications. When information drives the success of connected individuals, it suggests that networks are facilitating efficient talent allocation. On the other hand, if favoritism is the primary driver, it raises concerns about fairness and meritocracy. The new research offers a novel way to differentiate these forces, relying on the premise that information makes decisions less predictable, while favoritism introduces systematic biases.

Information Channel: When connections convey information, decision-makers gain additional insights about a candidate's abilities. To an outside observer (the econometrician), this makes the promotion decision appear more random. The jury has more information than the numbers or information presented.
Favoritism Channel: Favors, on the other hand, introduce systematic biases. Connected candidates may be evaluated more leniently, leading to a higher likelihood of promotion, even if their qualifications are not superior.

Imagine a panel evaluating candidates. If a connection provides genuine insight into a candidate's potential (information), the panel's decision will be more informed. Conversely, if the connection simply sways the panel to view a candidate more favorably (favoritism), the decision becomes biased. Therefore, one can see, with appropriate adjustments, what affects people, and by how much.

Harnessing the Power of Connection: A Strategic Approach

Connections can significantly influence your career. The new research helps us understand how. It's not enough to simply build a large network; it's crucial to cultivate meaningful relationships that can provide valuable information and support. As this article showed, having an abundance of connections that aren't good, will not actually provide and positive reinforcement. By understanding the dynamics at play, you can become more aware of the power of connections. By learning that, you'll be able to navigate your company's, or industry's social environment to provide yourself a competitive advantage.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.1708.07723,

Title: Promotion Through Connections: Favors Or Information?

Subject: q-fin.ec

Authors: Yann Bramoullé, Kenan Huremović

Published: 23-08-2017

Everything You Need To Know

How do connections impact career advancement, and is it all just about who you know?

Connections play a significant role in career advancement, but it's not solely about 'who you know'. Research indicates that connections can provide valuable information or lead to favoritism. Information gained through connections can offer insights into skills and potential, aiding decision-makers. On the other hand, favoritism can create biases, potentially leading to unfair advantages for connected individuals, regardless of their qualifications. Therefore, while connections matter, the *type* of influence they exert—information or favoritism—is crucial in determining their true impact.

What are the two primary ways connections can be advantageous in professional settings?

Connections can be advantageous in two main ways: through the information channel and the favoritism channel. The information channel involves connections providing valuable insights about a candidate's abilities, projects, or potential, enabling decision-makers to make more informed choices. The favoritism channel, however, involves connections influencing decision-makers to unduly favor connected candidates, potentially leading to biased decisions. Distinguishing between these two effects is critical for understanding the true impact of networks on career advancement and fairness.

How does the 'information channel' work, and how does it improve decision-making?

The 'information channel' operates by providing decision-makers with additional insights into a candidate's abilities and potential. When connections convey genuine information, it enriches the evaluation process, making decisions appear more random to an outside observer because they are based on a more comprehensive understanding. This improved information flow can lead to more informed choices, benefiting both the decision-maker and the candidate by ensuring that talent is recognized and rewarded based on merit. This helps to enhance the overall quality of talent allocation.

What is the 'favoritism channel,' and what are its potential negative implications for fairness and meritocracy?

The 'favoritism channel' introduces systematic biases by influencing decision-makers to view connected candidates more favorably, regardless of their qualifications. This can lead to a higher likelihood of promotion or selection, even if other candidates are more deserving. The negative implications for fairness and meritocracy are significant, as favoritism undermines the principles of equal opportunity and rewards based on talent and hard work. It raises concerns about equitable talent allocation and can create a perception of unfairness within organizations, leading to reduced morale and engagement.

How can individuals strategically harness the power of connections for career advancement, according to the research?

To strategically harness the power of connections, it's essential to cultivate meaningful relationships that provide valuable information and support rather than simply building a large network of superficial contacts. Understanding the dynamics of how connections influence decisions—whether through information or favoritism—is crucial. By focusing on building connections that can vouch for your abilities and provide genuine insights to decision-makers, you can leverage your network to your advantage and navigate the social environment of your industry effectively. The quality of connections matters more than the quantity.