Networking is very important for individuals and for the businesses for which they work. Networking is the process of intentionally meeting people who might be useful to you in the future. Since people can be useful to you both as an individual and as an employee of your business, networking can help you and your employer both.
Networking can help your employer if you go out and meet people who can steer business or other things your way. If you network, you might find out about a firm that needs a service that your firm can offer. You might make contact with someone who can make it more likely that your firm will be hired to provide that service. These sorts of things will, obviously, help your firm.
Networking can also be useful to you on the personal level. You might meet, for example, someone who has influence over hiring decisions at a firm that you might like to work for. You might meet someone who does a job analogous to yours but who is older and more experienced and would be willing to serve as a mentor to you from time to time. These sorts of contacts can help you personally to improve your career prospects.
In these ways, proper networking can be helpful both to you and to your employer.