A recent study from Challenger, Gray & Christmas, LLC concluded that companies lose 1.8 billion dollars in unproductive wages due to the NCAA Men’s Basketball tournament, better known as March Madness. You can take a closer look at how they calculated this number at their blog. Truth is, quantifying how much money is ‘lost’ in this process is difficult at best. They estimate that the typical employee spends 20 minutes per day during the week leading up to the first round of March Madness. If an employee spending 20 minutes per work day can be quantified in lost wages, how much money is lost on a daily basis due to bathroom breaks, personal emails or calls, and other activities employees do to get away?

Do your employees spend time while working researching their picks and filling out their pools? YES. Some companies frown upon their employees doing this and threaten punishment or block websites. Truth is, companies would benefit by ENCOURAGING their employees to take part in this event. This opinion is supported by the namesake and partner of the researching firm, John A. Challenger, in his opinion he wrote in 2009 for U.S. News.

…we hope that employers utilize March Madness this year to cut workers a little slack. A little distraction could be just what the doctor ordered. The key for companies is finding a way to maximize the positive aspects of March Madness to outweigh any perceived negatives.

Embracing March Madness into your company can have many benefits, from morale boosting to team-building and communication. Here are some ideas that could benefit your company in many ways:

Host your own bracket contest- Buy a simple prize (gift certificate) or give a special perk (parking spot) and actually run a company wide bracket contest. If you want, you could add in some different twists and rules.  Use the bracket manager at CBSSports.com to easily manage your contests.

Allow your employees to show team spirit- By allowing your employees to wear their Tarheel Kentucky Blue or Syracuse Orange, or at least letting them decorate their cubes, you will be providing a very easy, albeit free, way to boost morale.  A simple gesture that is undoubtedly appreciated.  Have your participating employees donate money to a good cause and this could be beneficial in many ways.

Put the game on!-Allow your employees to come to the break room or check out the game every once in awhile.  As long as they get the necessary work done and it is not conflicting with their performance, there should be nothing wrong with it.

Friendly Competition-If you are a small business without a lot of employees, I recommend a simple contest with other websites/companies.  Every company participating can offer their own unique service and the winning company gets the combined prizes.

The truth is your company can benefit by embracing March Madness instead of prohibiting it.  This is your one chance this year and the benefits can be long term.