According to recent survey, the number of Internet users in the U.S. is expected to expand by 3.1% in 2012 to 239 million, representing 75.6% of the total population.  Only three other nations in the world have populations with a higher percentage of Internet users.  And, in terms of sheer number of users, only China has more people using the Internet than the U.S. (although only 38.4% of China’s total population has Internet access).   Some see this as progress and believe that — in today’s modern world — increased Internet access for all is a good thing.  After all, the Internet has revolutionized communication as we know it.  As its name implies, the “world wide web” delivers a world of information, goods, people and ideas to any computer, tablet or phone with the click of a button.  The problem is that the Web does indeed deliver a world of goods, information, people and ideas to any computer, tablet or phone with the click of a button… and all those goods, information, people and ideas are not necessarily needed, useful or good. As with every innovation, the Internet has advantages and also disadvantages.

Setting aside the moral challenges raised by some of the questionable content found on the Internet (which is not the focus of discussion here), from a purely business standpoint, unfettered Internet access at work does have its drawbacks.  While most may be quick to embrace the advantages of the Internet, it may be wise to also consider and weigh its disadvantages carefully.  After all, business owners, leaders and managers are forever focused on making the most of their organization’s resources, minimizing the risks and maximizing the return.  It stands to reason that a similar cost-benefit analysis should be done on the impact of Internet use at work.

In a cost-benefit analysis, here are some significant costs to consider.

1.  Workplace Internet use results in reduced productivity.

This is the first — and most obvious — problem.  According to a number of surveys, employees spend on average between one and three hours a day surfing the Web on personal business at work.  That’s based on self-reported amounts which means the actual amount of time wasted is likely even higher.  Consider this:

• According to IDC Research, 30% to 40% of Internet use in the workplace is not related to business.
• A study by Vault.com revealed that 37% of workers say they surf the web constantly at work on personal rather than business matters.
• The cost of employees surfing the web from their office PCs is estimated to cost U.S. companies more than $1 billion dollars a year.

Moreover, time spent surfing gaming and social media sites, e-commerce portals and chat rooms on a regular basis not only detracts from a company’s productivity, but can be habit-forming which can then spiral into greater and greater productivity loss.

This significant productivity loss, combined with the concerns that employers have for “where” their employees are surfing the Web at work, is causing more employers to monitor employee use of the Internet, which amounts to even more time wasted time by management.

2.  Workplace Internet abuse results in a less-healthy staff.

In addition to the impact that Internet use may have directly to a company’s bottom line, it may also indirectly be affecting the already rising cost of healthcare premiums for companies and their employees.  When used in excess, Internet abuse can also be bad for employees’ health.  Constant Internet use can be addicting.

Employees who spend all of their personal time (in addition to the company’s time) hopping from shopping to social networking to entertainment sites tend to have more health problems including headaches, backaches and stiff necks, as well as carpel tunnel syndrome.  It also can cause eye strain, increasing the need for glasses or contact lenses.  Internet junkies are less likely to go outside and soak up a little sunlight or take a walk during lunch, which can help reduce weight, improve the circulatory system, clear the mind, provide vitamin C and pump endorphins through the body.  Ultimately, time redirected from healthy exercise to an unhealthy fixation on Internet activities is bad for business and bad for a business’s most precious resource:  its people.

3.  Workplace Internet use results in increased expenses or risk.

Providing employees with Internet access increases the company’s expenses or risk in a number of ways that is above and beyond the cost of computers, servers and support.

• Employers must protect networks from hacking and ensure that customer data is protected.  Data security is threatened when hackers or harmful applets enter the corporate network from unsecured websites.  Unlimited Internet use by employees to gaming and shopping sites increases the opportunities for such contamination.  That can lead to legal repercussions and risks for people whose personal information was stored in the databases, thereby increasing a company’s risk.

• IT departments must also guard against computer viruses. If a company’s network or workstations are infected by any kind of malware, this can interfere or halt a business’s daily operations. Viruses that attack computers on a company network can pose serious consequences for the organization.  Sales can be lost.  Orders may not get processed in a timely manner.   The supply chain could be interrupted. Again, unlimited Internet use by employees to some non-business related websites increases the opportunities for such contamination.

• Bandwidth limitations increase costs for companies when personal Internet use clogs up network access.  This forces a company to expand its bandwidth to accommodate the added use.

• HR and legal departments must deal with the repercussions when objectionable or dangerous material is introduced into the business environment.  Therefore, many companies feel compelled to monitor staff Internet use and emails to avoid legal issue, protect the safety of company information, prevent harassment and ensure productivity.  Monitoring of Internet use and email takes many forms including tracking content, counting keystrokes and time spent at the keyboard, storing and reviewing computer files, monitoring the blogosphere to see what employees write about the company, and keeping any eye on social networking sites. Companies use either technology tools to automatically monitor email or assign an employee to manually read and review email.  Either approach is a significant added expense for the company.  Companies who opt not to monitor Internet or email use increase their company’s exposure and risk.

4.  Workplace Internet use results in lack of privacy or security.

Personal information is perpetually at risk when using the Internet.  Employee and company information can be compromised due to identity theft.  An employee’s personal information such as their name, address, phone, email address, age or date of birth can be accessed by other people online.  Employees using a credit card online, whether it is a personal credit card or a corporate credit card to pay for office supplies or travel, risk that the credit card information can be ‘stolen’.  When a company or individual employee’s personal or credit information is breached, the business time lost reporting and fixing the problem can be significant.

5.  Workplace Internet use results in poorer customer service.

According to the 2012 American Express(R) Global Customer Service Barometer, 93% of Americans surveyed said that companies fail to exceed their service expectations and 55% walked away from an intended purchase in the past year because of a poor customer service experience.  Moreover, 32% of respondents felt businesses are paying less attention to providing good customer service, which was an increase of 26% from 2011.

Clearly customers are increasingly dissatisfied with the level of service they are receiving from U.S. companies.  Employees who are spending 10-40% of their time on the Internet instead of attending to clients’ needs certainly will not help the customer experience.  Employees who just want to get back to surfing the Web are likely to be more curt, brusque, unaccommodating and uncooperative to customers.  That can have a very direct impact on a company’s bottom line.

Even without taking into account the myriad of other legal and HR problems that come from employees who go to illicit or gambling sites at work, there are substantial drawbacks to providing unlimited Internet access to all employees at work.  While there may be benefits to giving every employee access to the Web, the disadvantages cannot be ignored by any company focused on its profitability and growth.  Cha-ching.

Quote of the Week

“All good things are difficult to achieve; and bad things are very easy to get.” Confucius

© 2012, Keren Peters-Atkinson. All rights reserved.