With the expansion of Facebook & Twitter, more employers are beginning to consider measures to block social networking sites in the workplace. The negative financial impact of social networking in the workplace has emerged as one of the biggest challenges for human resources representatives and business unit managers. As a result, many employers are trusting Wavecrest software to monitor employee internet use.

According to the business consulting firm Basex, workplace distractions cost the U.S. economy $997 billion in lost productivity last year. Consider the fact that 82% of employees surveyed by Association Corporate Counsel admitted that they use social networks for personal reasons during their work schedule, and you’ll understand why executives are becoming more concerned with productivity decreasing due to these online distractions.

Productivity drain is just one of many problems caused by social networking in the workplace. Other hazards include legal liability and exposure to malicious websites that may include malware and other viruses. In the Smart Business article titled, “No time to hesitate: developing a social media use policy for the workplace“,  Lou Klein wrote:

“Of growing concern to employers is employees’ use of social media during work and engaging in risky behavior that, left unchecked, can and will result in real liability and lost opportunities for companies. An issue that is becoming more problematic is the downloading of copyrighted material from the Internet. In order to avoid running afoul of federal copyright laws, a social media use policy should include language that requires employees to obtain permission prior to including or downloading copyrighted material on a company-sponsored Web posting or to a company-owned computer.”

For business executives, these figures should be especially disturbing when you consider the same survey found that 74% of employees say it is easy to damage a company’s reputation via social media and 37% of employees say they rarely or never consider what their boss or colleagues would think.

A recent survey by Solutions Group Inc. HR consulting firm found that 33% of employers have experienced improper use of Facebook by an employee.

“Social media in the workplace is by far the hottest issue in human resources in 30 years,”-David Lewis, chief executive officer of Operations Inc. “The use of social media is forcing employers to address issues that are new to them.”

Wavecrest’s software provides detailed employee web use reports for I.T. personnel and managers to identify network users that could pose potential threats to a company’s productivity or reputation.

At a high level, this section suggests some approaches for fitting Cyfin or CyBlock into the organization’s overall employee internet usage management program.  Topics addressed include:

(a)    policy-based concepts and approaches for addressing Web-use management issues.

(b)  centralized vs decentralized approaches to Web-use management and administration.

A.  Policy-Based Web-use Management.

At a fundamental level, an effective Acceptable Use Policy / Web-use management program includes:

• a strategy for Internet use
• a policy for governing that use
• a policy-based mechanism or process for monitoring and reporting on that use
• a follow-through process for analyzing Internet usage and taking appropriate action on the basis of that analysis.

Strategy for Internet Use.  In a way, discussing the need for strategy is “stating the obvious,” but then again, maybe not.  In today’s world, network resources are absolutely crucial to achievement of the enterprise’s goals and objectives.  In addition, it’s no secret that they are extremely expensive.  Consequently, to ensure cost-effective mission success, the enterprise should have a carefully crafted, clear strategy for the way these resources are to be used.  The strategy should state the enterprise’s goals and objectives in a clear, coherent way and should indicate the priorities to be employed, functions that are to be stressed, etc.

Employee Web-use Management Policy.  Typically referred to as an Acceptable Usage Policy (AUP), a sound, formal Web-use policy is needed to help implement the enterprise’s strategy.  In the context of network usage, an effective, thoughtful, and properly administered policy is a dual-purpose document.  That is, it 1) encourages and guides all members of the enterprise work force toward positive constructive use of network resources, while 2) simultaneously helping to curb inappropriate or abusive use.

To accomplish the first purpose, it should clearly reflect the strategy discussed above as it relates to network usage.  In so doing, the policy should clearly state how, when and why network resources should be used and when they should not. To aid the second purpose, it should clearly state what is acceptable use and what is not, and it should clearly indicate the sanctions to be imposed for engaging in unacceptable use.  In our judgment, though, the former should be emphasized more than the latter.  In sum, a sound Web-use policy is more than just a litany of restrictions and penalties; it is the fundamental promoter and guideline for using network resources in positive ways to benefit the enterprise and all of its members and stakeholders.

Policy Dissemination.  The policy should be widely disseminated, in an understandable form, to all concerned. As part of this process, the various components of a policy-based Web-use management system can be used to “educate” the enterprise’s computer users in a positive manner.  First, management can explain the content of the policy itself, pointing out the reasons—both positive and restrictive—why the policy is necessary.  Finally, management can describe how the various provisions of the policy will be monitored and audited, how the users will be notified of any deviations, and the kinds of corrective action that may be taken if necessary.  As mentioned earlier, such orientation does not need to focus solely on the “negative.”  It can be used to stress how management wants the workforce to use Web sites (not just how they should not be used), and how proper use can help the enterprise and all of its stakeholders succeed. Done this way, the policy helps preclude misunderstanding or confusion as to what constitutes desirable and undesirable use of network resources.

Policy-Based Monitoring and Reporting.  By definition, Web-use policy management strives to ensure that Internet usage conforms to both the positive and restrictive aspects of the enterprise’s policy.  Successful accomplishment of this objective requires implementation of some type of highly efficient monitoring, documenting and reporting product that can record and display the number, type and origin of Web site visits. This information is needed to determine the degree to which network resource usage conforms to the enterprise’s Web-use policy. To produce this information, enterprises can implement some sophisticated but easy-to-use Web-use management products that are currently in use in a number of sectors.

Follow-Through Process (for Analyzing and Using Reports).  As indicated earlier, an effective policy-based Web-use management approach includes a follow-through process for analyzing Internet usage and taking appropriate action when deviations from policy are noted.  Such action may be needed to 1) bring network usage into conformance with policy, or 2) to modify the policy (or related plans) accordingly.  When this is the case, management can use the information provided by the reporting system to guide adjustments to priorities, strategies, schedules and tactics, and/or to guide any necessary workforce-related actions, e.g., assignments, training, or disciplinary action.  It can also be used to guide the establishment of Web-access blocking regimens if management decides to include filtering in its overall approach. 

B.  Centralized vs Decentralized Approaches to Web-Use Management

 Depending on several organizational factors (size, dispersion, mission, culture), an enterprise may choose to use a centralized or decentralized approach to Web-use management.

Centralized Web-use Management.  Centralized management generally means that all of the organization or enterprise’s outbound Web activity is monitored and controlled by a single individual or office from a single location – typically in the organization’s headquarters or main office.

We have observed two variants of centralized management:

(a)    A single IT group or individual performs (a) many of the day-to-day employee monitoring, report generation and policy-enforcement functions and (b) the usual technical administration functions.

(b)   A central HR office performs the day-to-day employee monitoring, report generation and analysis, and policy-enforcement functions, while IT performs the usual technical administration functions.

A centralized approach may be suitable for relatively small organizations that do not have any (or many) major divisions, large departments, far-flung field offices or remote facilities.  On the other hand, under certain circumstances, a centralized approach may also be suitable for large customers even if they have major divisions and a physically dispersed organization.  This will be the case if senior management wants the management and administration of all network resources to be monitored and controlled from one central location, e.g., headquarters.

Under the centralized approach, all covered workers – no matter how many – will be subject to the same usage policy provisions. And their division and department managers and local IT administrators will have no control over the settings, parameters and formats discussed above.

Wavecrest software can easily support a centralized approach.  In such cases, the customer operates with a single license subscription.  Under this arrangement, the customer is authorized to install one copy of the server software on one centralized server, although multiple remote control consoles connected to that one server can be employed.  As implied earlier, this means that all covered workers and all output products (e.g., reports) will be subject to one group of settings that govern a number of Cyfin or CyBlock parameters, actions and formats.  Examples of such items include: reporting language, maximum IDs to be displayed in reports, category classifications (acceptability ratings), block-allow settings (for filter products), thresholding enabled or disabled for automatic abuse-detection, etc. 

Advantages of Centralized Management.  Compared to a decentralized approach, centralized Web-use management offers the following advantages:

• Uniform application of policy provisions to entire workforce.
• Fewer managers and administrators involved.
• Lower cost.
• Easier control over security and privacy issues.                                                   

Disadvantages of Centralized Management.  A centralized approach can have the following disadvantages:

• Less autonomy and less empowerment for line managers and/or dispersed HR representatives.
• Less flexibility in “localizing” policy provisions.
• Overburdened IT personnel (possibly).

Decentralized Web-use Management.  When senior management wants to decentralize the management, administration and control of network resource usage, multiple licenses will be required.  Under this arrangement, the customer can install multiple copies of the software on multiple servers, with one or more remote administration consoles connected to each server.  Under a multiple-license arrangement, if desired, different groups of workers can be treated and evaluated differently with respect to their online activity.  And their “local” managers and administrators will have much more autonomy and flexibility with respect to the use of Web-use management software and associated reporting and filtering actions.      

With the recent launch of Google Plus and Facebook’s membership spreading across the globe, millions of managers are faced with a new challenge to block social networking sites in office workplaces.

As the lines between work and pleasure continue to blur, many companies are suffering from wasted time and productivity.  Consider the recent findings of several studies on social networking’s effect on the workplace. In a report titled: The evolution of social networking technologies in the workplace: balancing employee and employer rights, the Association of Corporate Counsel revealed:

• 82% of employees admit to using such media during work time for “personal reasons”
• 74% of employees admit it is easy to damage a company’s reputation via social media,
• 37% of employees say they rarely or never consider what their boss or colleagues would think
• 34% say they rarely or never consider what their clients would think.
• 27% of employees say they do not consider the ethical consequences of posting online.
• 24% of employees say they do not know if their employer even has a formal policy regarding social networking.
• 15% of employees admit that they would comment about their employer online if they disagreed with something the employer did.

An employee poll conducted by Workplace Options revealed the high cost of social networks and other office distractions. The poll revealed:

• 54% of those surveyed believed distractions in the workplace  have impacted their productivity.
• 42% said they have extended their working hours either by coming in early or staying late to avoid these interruptions of time.

All of the distraction caused by social networks contributes to the $997 billion of lost productivity (Basex Consulting’s 2010 estimate)

Expert quotes on social networking in the workplace:

David Lewis, chief executive officer of Operations Inc.

“Social media in the workplace is by far the hottest issue in human resources in 30 years,” he said. “What’s even more intriguing is that the courts’ view of the balance between the rights of the employer versus one’s right to privacy is unclear, making this an issue that bears close scrutiny in the coming years. Our survey shows that many employers are starting to take notice, albeit with little clear understanding of how to proceed.”

In the same article, Matt Broder, Vice President, External Communications at Pitney Bowes, was quoted:

“Social media has grown so vastly, and the potential for benefit or danger to your corporate reputation has grown. We felt it was important to supply employees with guidelines. It’s important for any company. Reputations can be destroyed in an instant.”

“Social media environments provide a forum for defamatory statements to be made about individuals, and disparaging remarks to be made about companies’ products and services.”