Demos: Facebook helps businesses

12:57 31st October 2008

Employees should be encouraged to use social networking sites as part of their daily working routine, according to a leading think tank.

A report conducted by Demos highlighted that the popular Web 2.0 sites allow staff to interact with each other, which can encourage company cohesion and employee retention.

In addition, websites such as Facebook and MySpace also encourage networking outside the company, bolstering business operations and avoiding concentrating all outside communication with a few individuals.

The report states: "We argue that we need to understand how, once we accept the implications of social networks, we can manage the new challenges and trade-offs.

"The answer is not to close down staff access to social network platforms, nor is it investing blindly in collaborative platforms."

Earlier this month, the analyst Forrester Research predicted that spending on enterprise 2.0 messaging and collaboration technologies will fall, amid increasing competition and a weakening economy.