Can being on social networks during work hours be detrimental to an employee's productivity? Sure it can. Can it increase the employee's productivity? Sure it can. As with any debate I could blind you with statistical data favouring both sides but really what's the point?
Many businesses out there especially the larger bureaucratic ones have a solution which is to block access to these sites. This is overkill in my mind especially since this method of communication is altering the way that this generation is doing business. Keep up or be left out.
So how does a business regulate this? Increase policy? No. Block the Internet? No. Empower employees? Yes. By empowering employees I mean showing them what it is for them to be productive and to be a contributor to the bottom line. Allow them to understand where they fit in the business process and what they need to do to be a strong link in the chain. This is not an easy task but certainly worth the effort.
For business managers out there it can be summed up in one sentence...if your employees feel the constant need to minimize or close out their screens when others come by then they are wasting time. If the business manager and employee both come to understand this together, productivity with respect to wasting time on social networks will not be an issue.
