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Facebook Costs Companies 1.5 Percent of Total Productivity

An independent study by Nucleus Research finds that companies that allow access to Facebook lose an average of 1.5 percent in total employee productivity. Key findings of the study of 237 employees concluded: nearly half of employees in the study and 77 percent of those with an account use Facebook during work hours; some employees use Facebook as much as 2 hours per day while at work; one in 33 employees use Facebook exclusively while at work.

“If your company is facing tight margins and low profitability, as many are now, then how can you accept any work distractions that drain your overall productivity?,” said Rebecca Wettemann, vice president of research for Nucleus Research. “While it won’t make you popular, restricting Facebook can reclaim lost productivity. If your profitability is say two percent, this could be the difference between staying open or closing shop.”

Of those using Facebook at work, 87 percent could not define a clear business reason for accessing the site. Further, the analysis reveals potential security concerns through email, as most organizations do not monitor and manage Facebook as closely as email. This creates an opportunity for Facebook users to circumvent controls and violate corporate communications policies.

The Nucleus analysis concludes that companies should evaluate their Facebook policy and the cost to the organization in allowing access to Facebook, as today blocking Facebook may actually result in a 1.5 percent gain in productivity. The full research note is available at NucleusResearch.com

 [July 23, 2009]


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