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'Intuitive interaction' Firms are increasingly using networking software to share documents and collaborate in ideas, the research found. And while more work-specific systems, such as LinkedIn or bespoke in-house software tended to be used for work matters, the likes of Facebook, Bebo and MySpace still had a place, said Peter Bradwell, a Demos researcher and the report's author.  

"They are part of the way in which people communicate which they find intuitive," he said. "Banning Facebook and the like goes against the grain of how people want to interact. Often people are friends with colleagues through these networks and it is how some develop their relationships." Using technology to build closer links with ex-employees and potential customers could also boost productivity, innovation and create a more democratic working environment, Mr Bradwell added. "In today's difficult business environment, the instinctive reaction can be to batten down the hatches and return to the traditional command-and-control techniques that enable managers to closely monitor and measure productivity. "Allowing workers to have more freedom and flexibility might seem counter-intuitive, but it appears to create businesses more capable of maintaining stability."