How the Internet is Causing Businesses to Lose Millions

The Internet is a double-edged sword. Internet technology like cloud computing can help to improve a business’s productivity. However, the situation gets out of control when ill-disciplined employees take advantage of office hours to connect with friends on Facebook or shop for items on eBay.

According to NCH Software, the average business loses more than $350,000 annually due to non-work related browsing. For big corporation with over 1,000 employees, the loss could amount to $35 million per year.

Social networking sites are believed to be the main culprit. We last reported that social media cost the United Kingdom $21 billion a year. And last year, out of the 1,400 Chief Information Officers (CIOs) surveyed, more than half of them stated that their employees were totally prohibited from any online social networking activities. A similar survey conducted this year also reflected about the same result.

Productivity isn’t just the only issue. Confidential information in the company is also at stake. 3 out of 10 employees admit to sending confidential information to outsiders. Such frauds committed are estimated to have cost $110,000 for each business.

But social media isn’t without benefits. We have seen how businesses use social media to their advantage. Zappos, for example, has used social media to communicate its fun corporate culture. The company’s constant engagement with the world through channels like YouTube and Twitter has gained admiration from both potential employees and customers. We all want to buy from someone who is friendly and Zappos managed to create a friendly “atmosphere” even when it doesn’t have a retail storefront. Zappos is successful because it encourages its employees to embrace social media. Its Twitter leader board would be its best evidence.

Check out the three benefits for using social media at work.