A new study has suggested that employers should allow its employees to use social networking websites. Cutting workers off from sites like Facebook or Myspace could damage firms in the long-run by limiting the way that staff communicate, the Demos study suggests.

The think tank believes that social networking encourages employees to build relationships with colleagues across a firm – so long as those who abuse the use of these sites are dealt with accordingly. The research found that companies are increasingly using social networking software to share documents and collaborate in ideas, the research found.

While more specific systems such as LinkedIn or in-house networking software were useful for work related matters, the study claims that the likes of Facebook, Bebo and Myspace still have a place, said Peter Bradwell, the reports author.

“They are part of the way in which people communicate which they find intuitive,” he said.

“Banning Facebook and the like goes against the grain of how people want to interact. Often people are friends with colleagues through these networks and it is how some develop their relationships.”

Using technology to establish closer working relationships with ex-employees and potential customers can also help boost productivity, innovation and help in creating a more democratic working environment, Mr Bradwell added.

“In today’s difficult business environment, the instinctive reaction can be to batten down the hatches and return to the traditional command-and-control techniques that enable managers to closely monitor and measure productivity.

“Allowing workers to have more freedom and flexibility might seem counter-intuitive, but it appears to create businesses more capable of maintaining stability.”

The rise off social networking shows that there is a desire to connect with others and socialise, said Mark Turrell, Chief executive of Imaginatik, which develops bespoke networking software.

“Being able to see a photo of colleagues, or knowing what they are up to, can be incredibly useful for businesses, especially if a firm employs thousands of people,” added Dr Turrell, whose firm took part in the study.

However he warns that you need to “be tied to a business goal” when using these sites. He said that his customers often use the software to find solutions for problems that fall outside their skill set, by asking members of their friends list.

“The first people to respond might not know the answer, but they could suggest somebody who does,” he said.

“Within a few days, they are able to get enough people from across the organisation with the right expertise to work on it.

“And by focusing the minds of a group of people on a specific task, you can find a solution much more quickly than you would do otherwise.”

Younger employees who have grown up with technology such as mobile phones, e-mails and social networking want their employers to adapt to the new technology.

“The key questions are, how do you get the brightest people to work for you, and then, how do you get the most out of them,” Dr Turrell said.

“Organisations need to give their employees physical and virtual space to grow and explore their ideas.

“In today’s new world, employees expect and require sophisticated enterprise social networking tools to shine.”

The reports authors were keen to point out that clear guidelines need to be sent out about the appropriate use of social networking, and that employers should not hesitate in telling employees spending “unreasonable” amounts of time using these sites for non-work related activity that they must stop.

Mobile and broadband firm Orange commissioned the search, and are at present building its own in-house social networking platform for its staff.

“The profile and significance of social networking is increasing now, because of the proliferation of new technologies that enable us to connect to each other in our personal and professional lives,” said Robert Ainger, Orange Business UK.

“But it is also good for companies to be aware of the tensions and look at deploying practical guidelines which will protect the positive impact of networks, not hamper it.”

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