Employees are stealing more time taking cigarette breaks than they are visiting Facebook. That's the finding of a Ball State University study. Yet, many employers are more alarmed that their employees are spending company time on social networking sites, zapping away company productivity. To combat this, companies are writing policies that prevent all usage while others are putting up firewalls to block access.

Before heading down a similar path, employers should step back and evaluate the situation carefully. Survey after survey indicates that employees are in fact accessing Twitter, Facebook and other sites during company time, but their time away from work is limited.

Employers should legitimately be concerned about productivity loss as well as the potential for damaged reputations due to inappropriate postings by their employees. After all you want to control what employees may be saying and posting about your company, staff and customers.

Develop policies that clearly spell out how employees can utilize social networking sites, on and off the clock. Discuss what is expected and what is inappropriate. Educate your entire workforce. Employees need to know the rules governing their activity. But be careful about banning all usage. It is likely that it would not work and frankly, you may lose the legitimate benefits that come from social networking.

Social networking is here to stay. Have open discussions about it with your employees. Use it to your benefit.

Budgets for salary increases remain historically low, but projections for 2011 show a modest increase, according to The Conference Board annual salary increase budgets survey report, released July 13, 2010. For the second straight year, the median salary increase budget in 2010 is 2.5%. Projections for 2011 show a modest increase to 3%.

There is little variation across all industry groups with no employee group in any industry projected to exceed the overall median of 3%. The projections for 2011 salary increase budgets are up from the actual 2010 increases, according to the report.

Pay for performance continues to be the common approach for the allocation of salary increase budgets as companies remain focused on high-performing employees and growth businesses. While most companies have not budgeted general increases, overall merit increase percentages for 2010 actual and 2011 projected budgets mirror the trend of those of total increases.

The Massachusetts Attorney General has announced that Massachusetts has entered into a multimillion dollar agreement with FedEx Ground to settle the claim that the company misclassified its drivers as independent contractors.

FedEx Ground agreed to pay $3.05 million to Massachusetts' general fund to settle the claim. Massachusetts claimed that misclassification led the company to make lesser payments to the state for payroll taxes, workers' compensation and unemployment assistance.

Massachusetts' claim said the company misclassified drivers, failed to provide proper paystubs, failed to provide workers' compensation, did not pay overtime to certain drivers and neglected to deduct and withhold state income taxes. Fed Ex appealed.

The settlement amount provides for a payment for the 13 drivers named in the attorney general's citation. FedEx Ground drivers in Massachusetts have brought their own lawsuit against FedEx Ground, which remained pending and was not affected by this settlement.

FedEx Ground agreed to transition from a contractor model to an independent service provider model in Massachusetts and expects that the transition will be completed by July 1, 2011.

TIP: Review all independent contractors engaged by your organization. Ensure their proper classification under all state and federal agencies.

Source: SHRM.org

I will be speaking before the following groups:

Northeast Public Power Association Annual Conference on August 16. I will be speaking to Commissioners and Trustees on "Hiring Your Next General Manager."

Kennebec Valley Chamber of Commerce on August 18. My topic will be "Making Managing Easy."

Maine City and Town Managers Institute on August 20. My topic will be "Uncomplicating Management."

If your group needs a speaker, let me know. I am booking a number of engagements throughout the year. Click below to review my speaker sheet.

I have developed a number of tools and booklets to help you manage your workforce. These include:

• Sexual Harassment Prevention Toolbox
• Preventing Discrimination & Harassment Guide
• Strategies to Survive a Tough Economic Downturn Guide
• Guide To Massachusetts Employment Laws for Managers
• Employment Laws for Maine Organizations