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A growing risk in electronic chat.

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Author: Karamally, Laila

Section: Out Front
A growing risk in electronic chat


Subpoenas on the rise Most companies scan e-mail, but few have policies for instant messages

AMERICAN EMPLOYERS are facing an escalating risk of ending up in court because of the contents of employee e-mail. Yet they are failing to effectively monitor and control risky electronic communication within the office, which often contains jokes, porn and confidential company information.

Results of a recent survey of 840 companies by the American Management Institute show that 20 percent of respondents have had electronic communications subpoenaed, a 7 percent hike over results from a similar survey in 2003. Thirteen percent of employers are battling litigation triggered by electronic communication. The AMI report, conducted with The ePolicy Institute, notes that despite the alarming figures, 65 percent of employers do not have an e-mail retention policy in place and 94 percent do not retain or archive internal instant-messaging business records.

"First, companies have failed to manage the growing volume of electronic communication and define what constitutes a business record in e-mail and instant messaging," says ePolicy Institute executive director Nancy Flynn. "Anything that relates to the operations of the company, be it sales, hiring or performance issues, must be retained and archived. Non-business records should be deleted."

A deeper issue, Flynn says, is that companies are practicing different standards for internal and external e-mail. More than 50 percent of instant-messaging users say they send or receive risky content, including jokes, porn, gossip and confidential company information, but only 20 percent of employers have policies to govern intra-office electronic chat. And while 60 percent of employers scan incoming and outgoing e-mail, only 27 percent monitor internal electronic conversations among their own employees.

"What people used to say in the heat of the moment across the desk is now said in instant messaging," says Dan Johnson, a partner at McKenna, Long and Aldridge in Washington, D.C., who practices employment law and litigation for high-tech companies. "These exchanges can often be misconstrued or used out of context and provide fertile ground for e-mail litigation."

"Companies need to take a proactive stance and prevent abuse," Flynn notes, adding that training about instant-messaging content and frequency should be followed up with enforcement, using both software and disciplinary action. In 2004, 25 percent of respondents had fired an employee for violating e-mail policy, up from the 2003 figure of 23 percent.

THE HOT LIST

TOP REWARD & RECOGNITION PROVIDERS
Ranked according to number of client companies

Legend for Chart:

A - RANK
B - Company Web address
C - Non-monetary rewards and recognition programs available
    through the company
D - Number of client companies currently using using these
    programs
E - Company revenues for the most recent four quarters
F - Key clients

 A               B                          C

                 D                          E

                 F

1.    TERRYBERRY COMPANY         Provides lapel pins,
      www.terryberry.com         award rings, watches
                                 and more than 1,000
                                 other personalized
                                 awards.

      > 20,000                   $25
                                 million

      WND(*)

2.    AMERICAN EXPRESS           Provides stored-value
      INCENTIVE SERVICES         cards and American
      www.aeis.com               Express® Gift
                                 Cheques for reward,
                                 recognition and
                                 consumer programs.

      > 10,000                   WND

      Mack Trucks, Royce
      Builders, Airgas Safety

3.    O.C. TANNER                Offers service and
      RECOGNITION COMPANY        performance awards
      www.octanner.com           and other incentives
                                 and online recognition
                                 tools.

      8,693                      $300
                                 million

      Marriott, Johnson &
      Johnson, Avis, T. Rowe
      Price, Sara Lee,
      Weyerhaeuser

4.    BENNETT BROTHERS, INC.     Providers of the
      www.BennettBrothers.com    Choose-Your-Gift®
                                 Selective gift program
                                 which comes in 14
                                 price levels with name
                                 brand items in each
                                 level.

      8,000                      > $25
                                 million

      AFLAC, Caesars
      Entertainment, DeVry
      Institute of Technology,
      Brown & Williamson

5.    INCENTONE                  Integrated reward,
      www.incentone.com          recognition and
                                 incentive solutions,
                                 gift certificates
                                 and gift cards.

      > 4,500                    $72
                                 million

      NBC, Coca-Cola,
      Citibank, Verizon, Sears

6.    THE THARPE COMPANY, INC.   Supplier of
      www.tharpe.com             choice-based,
                                 Web-enabled,
                                 recognition award
                                 programs.

      2,400                      > $45
                                 million

      WND

7.    MARITZ INC.                Designs and operates
      www.maritz.com             reward and recognition
                                 programs, using travel,
                                 merchandise and
                                 stored-value award cards.

      380                        $550
                                 million

      Shell, HON, Sun
      Microsystems,
      General Motors,
      JPMorgan Chase,
      Caterpillar, Marriott

8.    CARLSON MARKETING GROUP    Provides design and
      www.carlsonmarketing.com   implementation for
                                 reward and recognition
                                 programs, highly
                                 customized travel
                                 rewards programs,
                                 merchandise awards.

      > 300                      WND

      Bell South, Daimler
      Chrysler, HP,
      State Farm, Verizon

9.    MARKETING INNOVATORS       Provides travel, gift
      INTERNATIONAL, INC         certificates and
      www.marketinginnovators.   award
      commerchandise             programs.

      247                        $87
                                 million

      WND

10.   RIDEAU RECOGNITION         Offers service awards
      SOLUTIONS                  programs, performance
      www.rideau.com             awards programs and
                                 corporate merchandise.

      > 150                      WND

      Alcan, Best Buy,
      Lucent Technologies,
      Molson, Levi Strauss
      & Co.

(*) WND: Would not disclose

PHOTO (COLOR)

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By Laila Karamally



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