Execs See Social Media Value, but Fear It As Well

Social media, despite being viewed as a key strategy, worries 80 percent of business executives either because of potential for employee time wasting, or because social media exposes companies to risk of criticism that could damage the company reputation, says Russell Herder and Ethos Business Law.

About 51 percent of executives surveyed say they fear social media could be detrimental to employee productivity, while 49 percent say that social media could damage company reputation.

Despite these apprehensions, social networking is seen as a key strategy. Some 80 percent of respondents believe social media can enhance relationships with customers/clients (81 percent) and build brand reputation (81 percent).

Almost 70 percent feel such networking can be valuable in recruitment (69 percent), as a customer service tool (64 percent) and used to enhance employee morale (46 percent).

The most popular vehicles being used include Facebook (80 percent), Twitter (66 percent), YouTube (55 percent), LinkedIn (49 percent) and blogs (43 percent).

“Particularly as Millennials compose a greater share of corporate ranks, social networks are likely to become more popular as communication channels with customers, colleagues and partners,” says Carol Russell, Russell Herder CEO.

The majority (74 percent) of executives surveyed said that they, personally, visit social media sites at least weekly to read what customers may be saying about their company (52 percent), and routinely monitor competitors’ use of social networking (47 percent). One in three search social media sites to see what their employees are sharing (36 percent); or check the background of a prospective employee (25 percent).

About 10 percent of respondents say they have staff who spend more than 50 percent of their time on such efforts.

Respondents who have not yet have a social media program say confidentiality or security issues (40 percent), employee productivity (37 percent) or simply not knowing enough about it (51 percent) are the reasons why no program is in place.

The Russell Herder/Ethos study found that 40 percent of companies technically block their employees from accessing social media while at work. At the same time, 26 percent of companies use social media to further corporate objectives, and just over 70 percent plan to increase the use of these new opportunities.