The next generation of workers will demand access to tools such as instant messaging and social networks, and will expect to be able to work remotely.

Companies that do not provide such facilities will fail to attract and retain the staff they want, according to a recent study by IDC.

The research revealed that the younger generation are increasingly " hyper-connected" using a wide variety of devices and platforms to communicate and interact.

However, issues around security and productivity have led many organisations to ban the use of sites such as Facebook and MySpace, and to restrict remote or home working and the use of instant messaging.

Dave Quane, chief information officer for EMEA at Nortel, which commissioned the research, warned that the security hurdles must be overcome.

"Companies that do not take a strategic view of what their network will look like in five years, and begin looking for ways to safely and securely implement these technologies, will find themselves struggling to attract talent," he said.

Quane added that, when correctly implemented and managed, these technologies can provide a major boost to productivity and overall worker happiness.