Social media and mobile networking continue to have a huge impact on work force effectiveness and efficiency. Likewise, they pose risks of cyber crime, car accidents and personal liability.

In a recent interview, a telecommunications authority compared our communications technology with early 1900s landline phones in terms of global use and growth potential. With more technologies and systems, our world of risk will evolve, and business owners must continually harness technology and balance risks that come with new territory.

Connecting points

Facebook, MySpace, Twitter, LinkedIn, YouTube, Cyworld, Eventful, Blogger, LiveJournal and other social networking sites are popular ways to share information. Frightening as it may seem, one poll suggests employees are more likely to share personal details of their family, life and business dealings through blogs, e-mail, texts and social sites than face-to-face. The balance of business and personal use of social networking can spell opportunity or disaster for employee-employer relationships.

Getting connected

Interestingly enough, a recent poll from a large, multinational financial firm revealed most businesses are not using social media to market products and services. According to a poll of small businesses nationwide:
81 percent don't use social media in any form.
37 percent don't use a website to promote their products or services.
84 percent don't sell products or services through an online system or portal.
62 percent don't use e-mail for marketing.
65 percent don't use online advertising.

Soaring ad spending

• Borrell Associates' Mediapost report predicts a 68 percent rise in social network advertising spending.
• Spending for social media advertising is expected to jump from $7.5 billion in 2010 to $38 billion in 2015.
• 82 percent of B2B (business-to-business) marketers use social media.
• Twitter announced in June a record 190 million users who send 65 million tweets daily.

Business risks

Social media exposures and risks to businesses are many. Cyber liability policies may provide some coverage for errors and omissions, viruses, unauthorized access, identity theft, personal injury, advertising injury, loss of use, business interruption, copyright, trademark, and patent infringement, according to Don Phin, attorney and owner of Internet-based HRthatWorks.

Employers and managers should discuss various insurance plans, query risk managers/insurance agents, and read policies carefully. They should consider employee practices liability insurance regarding social media, e-mail, and other policies and procedures. These plans deal with things like wrongful termination, sexual harassment, discrimination, and violation of privacy rights.

The biggest social-media risk is a double-edged sword: waste of employee time. Businesses using social media want employees as buyers to use media. But misguided use can come at huge costs to customer service, productivity and risk — particularly when someone is driving or operating equipment.

Soaring accidents

According to a VirginiaTech Transportation Institute report: "Given recent catastrophic crash events and disturbing trends, there is an alarming amount of misinformation and confusion regarding cell phone and texting use while behind the wheel of a vehicle."

The study revealed that for driving light vehicles and cars, the accident rate is 2.8 time higher while dialing a cell phone, 1.3 times higher while talking on a phone and 1.4 times higher while reaching for a phone.

For heavy vehicles and trucks, the crash rate is 5.9 times higher while dialing a cell phone, 1 times higher while talking on a phone, 6.7 times higher while reaching for a phone and 23.2 times higher while text messaging.

Strategic use

Use of forensic software to monitor employee social media use is skyrocketing. Assuming an employer has created and communicated a social media policy, monitoring can help with enforcement and training, and with maximizing business use.

As they release internal policies about e-mail and social media use, employers should get written acknowledgment from workers. They should also verify compliance.

Statistics from a Robert Haft technology survey published in October may help employers evaluate use of social media:
54 percent of employers ban all workday social media use.
19 percent allow it for business purposes.
16 percent allow limited personal use.
10 percent allow full access.

While screening and hiring, many human resource executives ask prospective employees to show their Facebook or Myspace pages. One study indicated 55 percent of respondents would ask an interviewer why he or she was curious, then decide whether to disclose the page; 12 percent would show the page; 8 percent would leave the interview; and roughly 25 percent would refuse and wait for a reaction.

Businesses can also use social media to bring employees together, build teams and promote brand identification.
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A company's goals, vision and beliefs can be shared 24-7, and clients and prospects can receive desired communications anytime. As social networking evolves, more and more employees will expect an interactive workplace. Now, more than ever before, clients want service and accessibility on demand — and that means day or night.

Greg Carlton, a principal of Peel & Holland Financial Group, is a Chartered Life Underwriter, Chartered Financial Consultant, and Licensed Life & Health Consultant. He may be contacted at gcarlton@peelholland.com or 270-527-6141.