(Hat Tip:  Darin Lynch — Thanks!)

In the past, most courts have treated corporate computers, and anything on them, as company property. However, in recent rulings, courts have begun to investigate the circumstances around disclosure of policies to employees and other factors. For example:

• In New Jersey, an appeals court ruled that an employee of a home health-care company had a reasonable expectation that email sent on a personal account wouldn’t be read.
• In San Francisco, a federal appeals court ruled that employers that contract with an outside business to transmit text messages can’t read them unless the worker agrees.

While it is probably too early to make any sweeping generalizations about this trend, it certainly suggests that employers need to review their policies, practices and training to make sure they do not run afoul of this evolving issue.

Social media is one of the hottest topics today, with the pros and cons of its use being debated in board rooms nationwide. In light of recent restrictions on employees’ social media use (ESPN, Marine Corps, NFL), companies are discussing whether, how and to what degree they should restrict or encourage their employees to use social networking tools. This webinar will offer insight into business leaders’ views and perceptions on this issue and will provide actionable recommendations and advice on the development of social media policies and employee training sessions.

Led by Carol Russell, CEO of Russell Herder, and David Baer, president of Ethos Business Law and one of Minnesota Lawyer publication’s Attorneys of the Year, the webinar will also highlight the insights gleaned from the recent national study conducted by the two firms on social media trends in the workplace and policy adoption.

Sign up for this free webinar here.

In advance of the webinar, we invite you to submit questions and suggestions for topics to be covered in the presentation under Comments.

Recent research conducted with Russell Herder found eight in 10 businesses have concerns about the potential liabilities of social media. Yet, only one-third have a policy in place to govern social media use, and just 10 percent said they have conducted relevant employee training.

Instead of ignoring the need for responsible guidelines, organizations of all sizes should begin to define their strategy regarding social media, and most importantly, the rules for employee engagement. By doing so, management can take advantage of the benefits offered by these new communication channels while mitigating undue risk.  But remember, social media is a far different animal than traditional technology. A company’s current policies on IT matters are usually not sufficient.

All companies are different, thus the rules for creating and implementing a social media policy are not universal. They must take the form, substance, philosophy and culture of the organization to which they apply. However, the following are some important elements to include in a good social media policy:

• Overall Philosophy. An effective social media policy should define the company’s overall philosophy on social media and be consistent with its culture.  For example, does the company have a supportive, open philosophy on the use of social media or a stronger, more limited embrace of this technology?
• Honesty and Respect. One of the most important aspects of a policy is a requirement that employees be open, honest, respectful and transparent in their usage of social media – especially in the business context.
• Focus on Job Performance. There is a lot of discussion on whether social media hurts worker productivity.  For example, is it acceptable for an employee to post on a personal blog during their lunch break?  Or, can an employee tweet on business-related topics during the work day? Remember, the new work force does not live in an eight-to-five world. The focus should be on job performance instead of “company time”.
• Avoid Conflicts of Interest. Conflicts of interests come in many forms – especially when engaging in social media.  The policy should discuss how to identify potential conflicts of interest, what types of conflicts are prohibited and who to talk to when in doubt.
• Include a Disclaimer. Employees should make it clear that their views about work-related matters do not represent the views of their employer or any other person.  The policy should require a disclaimer, such as the following, when there is the possibility for confusion between business and personal identity:  The views expressed on this blog are mine alone and do not represent the views of my employer or any other person.

While this list is not exhaustive, it serves as a starting point to develop a strategy and policy around social media that can serve to protect corporate interests, yet allow employees to further an organization’s overall social media goals.

To download complete research findings and full list of tips for developing social media policies and employee training, find it here.

Recent research conducted with Russell Herder confirms that confidence exists in social networking as viable communication outreach, but so do worries about the potential liabilities involved. Concerns regarding social media use were acknowledged by some eight in 10 businesses participating in the national study, which was conducted over the month of July.  Fifty-one percent fear social media could be detrimental to employee productivity, while almost half (49%) assert that using social media could damage company reputation.

Despite these apprehensions, social networking is being viewed as a key strategy. According to survey results, eight in 10 senior management, human resource and marketing executives believe social media can enhance relationships with customers/clients and build brand reputation. Almost 70 percent feel such networking can be valuable in recruitment, as a customer service tool (64%) and used to enhance employee morale (46%). The most popular vehicles being used include:

Much of senior management’s direct experience with social media appears to be reactive versus proactive, an interesting fact given the confidence they express in these new mediums. The majority (74%) of executives surveyed said that they, personally, visit social media sites at least weekly to read what customers may be saying about their company, and routinely monitor competitors’ use of social networking. One in three search social media sites to see what their employees are sharing; or check the background of a prospective employee (25%).

Social media has delivered incredible potential to build relationships, increase organizational effectiveness and grow brands, but its use is clearly raising questions in the board room. Should employees be encouraged to use social networking to enhance marketing outreach? Or will such activity impede productivity in an already tight economy? And what about reputational risk?

Rather than bypass the social media opportunity, organizations should embrace it while taking steps to educate their team about internal guidelines and best practices.

Yet, remarkably few efforts are being made to mitigate the risks. Only one in three businesses surveyed by Russell Herder and Ethos Business Law have a policy in place to govern social media use, and only 10 percent said they have conducted relevant employee training. Why? One of the main reasons, according to respondents, is uncertainty about what to include in such policies.

So what should be included in a good social media policy? Be sure to read about the key elements in our upcoming blog post.

How does your organization handle social media? What do you do to mitigate the risks? We’d love to hear about your experience, so be sure to leave your comments.

Below are three alternative methods of compensating employees that may offer just the right combination for your business to motivate and score in these tough, but opportunistic times.

Stock Options. At their core, stock options are essentially rights granted by an employer to purchase stock at a stipulated price over a specific time period.  They generally come in two types, Incentive Stock Options and Non-Qualified Stock Options.  Incentive Stock Options are more restrictive because they offer significant tax benefits to the employee.  Stock options are a great tool to provide long term incentives to employees in a growing business with a liquidity event somewhere on the horizon because they allow employees to share in the growth and success of the company as if they were a shareholder.

Restricted Stock. Restricted stock is generally a grant of stock to an employee, with the stock being subject to restrictions as to vesting and transfer.  Restricted stock typically provides strong long term incentives to recipients because they must remain with the company for the stock to vest and have the right to realize the anticipated gain in the value of the stock over time.  Vesting can be tied to the passage of time, the attainment of specified performance metrics or some other measure.  Moreover, recipients tend to feel more connected to the company if they own stock (even if it is restricted and subject to vesting).

Phantom Stock. Phantom stock is a form of compensation based upon the performance of a company’s stock over time.  A recipient is given “Phantom Units” that are not shares of stock, but track with the value of the stock of the company.  The company will typically define time periods and/or performance metrics that must be met for the Phantom Units to vest.  Once the Phantom Units vest, a cash payment is made to the recipient based on the value of the actual stock at that time.  Therefore, Phantom Units are a “parallel universe” to the stock, which track value over time and pay out cash at specified periods.  These programs can be infinitely flexible and recipients receive the upside of being a shareholder without actually owning any stock.  A note of caution for the company, though, as if the stock value increases significantly, these plans can require substantial cash payouts.

As you can see, the basic idea in each of these alternatives is that the business must be successful and grow for these compensation methods to provide value to the employee.  Therefore, in addition to providing monetary gain and retention, they provide a nice incentive for the employees to do what it takes to increase the company’s value.  Of course, care must be taken when evaluating these types of programs as they typically include complicated tax, accounting and legal considerations that must be addressed in each specific instance.  However, in these troubled economic times where employees are being stripped of compensation at every turn, perhaps a small paradigm shift will give your business the edge it needs to excel.