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Although there is a lot of studies made that point to Facebook being a productivity hindrance at the workplace I just feel an IP block of Facebook might build up more resentment and employee dissatisfaction. I would tread carefully on this matter . I feel a meeting to discuss this matter with your employees will be a good first step rather than implementing it right away. My take is with the use of smart phones even if you block it from the workstations if your employees really wanted to send a message they'll just use their phones. A consensus on this subject is the best approach for me.
Your idea sounds like a happy medium. Do you have malware and virus protection on your business machines? This is probably something you want to consider if you don't.
I have met some the problem with you, my facebook account used in work has been blocked,I must enter my phone number to get my account back and sign in.
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Some studies have shown that workers spend 38 minutes a days on facebook. Calculate then how much time is wasted on facebook per week, per month... I have limited access to facebook in my company but in specific times so that workers can access to facebook during the lunch time or break, that is important for them. I use software called facebook limiter to block facebook in specifis times.