NCAA brackets hurt workplace productivity, say experts in — hey, when's tip-off?

What was once a secretive yearly contest among co-workers has become an openly sanctioned company event in some workplaces.

NCAA bracket contests are upon Indianapolis — the tournament's heartland — and office competitions during March Madness are having an effect on worker productivity, human resources experts say.

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Greta Cline, chief operating officer of That’s Good HR in Indianapolis, says non-betting bracket competitions are commonplace in workplaces.

"It seems the interest is just as strong as it's been in past years," said Cline, who started with the firm in 2004. 

Larger companies, with thousands of employees to watch over, have an especially difficult time keeping workers from using company time to participate in a March Madness pool, says Jessica Stephenson, president-elect of the Indianapolis chapter of the Society of Human Resource Management.

Stephenson also warns that companies should "consider how they are structuring it so they don't have an illegal gambling operation."

The lost time from workers can add up, according to a 2018 study by Challenger, Gray & Christmas Inc. on the effect bracket competitions have on American workplaces. 

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The tournament is set to cost employers $2.3 billion nationally in time employees are engaged with the tournament at work, according to the human resources firm. 

“Between streaming games during work hours, filling out brackets to discussing games with co-workers, it’s likely employees will spend much more than one hour" during the tournament engaged in March Madness activities at work, said Andrew Challenger, vice president of Challenger, Gray & Christmas Inc. 

Some large, notable Indianapolis companies were reluctant to talk about the practice in their workplaces. 

A spokeswoman for San Francisco-based Salesforce, which has offices in Indianapolis, said the company does not participate in the NCAA bracket and declined to comment further on this story. 

A spokesman for Eli Lilly and Co. said "due to other business priorities" the company could not provide comment on the practice. 

The Indianapolis-based NCAA also declined to comment on this story. 

But many companies see a boost in morale from the competitions when money is not involved, and some workplaces showcase extravagant prizes for winning employees.  

Warren Buffett's annual Berkshire Hathaway NCAA Tournament contest raised its employee prize amount to $2 million a year for life (over last year's $1 million) if an employee picks a perfect Sweet 16.  

And if the Creighton Bluejays or Nebraska Cornhuskers wins the tournament, the prize will double, Buffett told CNBC on Monday.

Indianapolis human resources professionals generally support a workplace bracket, when legal. 

Stephenson with the Society for Human Resource Management points to morale. 

"You're getting a win in employee engagement."

USA Today contributed to this story. 

Call IndyStar reporter Fatima Hussein at (317) 444-6209. Follow her on Twitter: @fatimathefatima.