Bosses should encourage the use of such social networking sites as LinkedIn and Facebook among employees, according to a study by think tank Demos. Using technology to build closer links with former employees and potential customers can boost productivity, innovation and create a more democratic working environment, said Peter Bradwell, a Demos researcher and the report's author. "Allowing workers to have more freedom and flexibility might seem counter-intuitive, but it appears to create businesses more capable of maintaining stability."

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