Employees are the engine of your business, and effective communication is the fuel they need to thrive. It’s not a perk, it’s a necessity.

This guide dives deep into why strong internal communication matters and equips you with actionable steps to spark a more connected and productive work environment within your company. Let’s get started!

What Is Employee Communication?

Employee communication, also known as internal communication, encompasses all the ways a company informs, engages with, and listens to its employees. It’s a two-way street that involves sharing company news, updates, goals, and strategies, as well as soliciting feedback, ideas, and concerns from employees.

This communication can take various forms, from traditional channels like face-to-face meetings and company-wide announcements to more modern methods like internal communication tools, social media platforms, and video conferencing.

Importance Of Employee Communication Strategy In Business

The importance of an employee communication strategy in business boils down to two key factors: financial impact and employee engagement. Here’s a breakdown:

Financial Impact:

Reduced Costs: Disengaged employees cost companies billions due to lost productivity. A communication strategy combats this by keeping employees informed, motivated, and working towards shared goals.

Improved Performance: Clear communication leads to better decision-making, fewer errors, and a more efficient workforce. This translates to higher quality work and increased profitability.

Reduced Turnover:Feeling valued and informed contributes to employee satisfaction, leading to lower turnover rates and reduced costs associated with employee replacement.

Employee Engagement:

Increased Morale: Open communication fosters trust, belonging, and a sense of purpose among employees. This creates a more positive work environment and boosts morale.

Enhanced Collaboration: Effective communication breaks down silos and encourages teamwork. When everyone’s on the same page, collaboration becomes smoother and more productive.

Innovation and Problem-Solving: Open communication allows employees to share ideas and knowledge, leading to new innovations and improved problem-solving.

Improved Customer Service: When employees are well-informed about company policies, products, and services, they can better assist customers and provide a more positive experience.

Overall, a well-defined employee communication strategy is an investment in your most valuable asset – your people. By fostering engagement, reducing costs, and driving performance, it becomes a critical driver of business success.

Here are some key statistics highlighting its importance:

  • Disengaged employees cost US companies between $450 billion and $550 billion per year in lost productivity.
  • Companies with highly engaged workforces outperform their peers by up to 202%.
  • Employees who feel well-informed are more likely to be satisfied (73%) and proud (72%) of their organization.

Effective Employee Communication Benefits

A robust employee communication strategy offers a multitude of benefits for businesses, including:

Enhanced Productivity: When employees understand their roles, company goals, and expectations, they can work more efficiently and achieve better results.

For example -QComm, a leading telecommunications company, uses internal communication tools to keep employees updated on industry trends and competitor developments. 

This empowers employees to make informed decisions about network optimization, for instance, directly contributing to the company’s overall productivity.

Enhanced Engagement: Effective communication keeps employees engaged and invested in the company’s success. When they feel informed and heard, they’re more likely to go the extra mile for the organization.

Enhanced Morale :Open and transparent communication fosters a sense of trust and belonging among employees. Knowing they are valued and have a voice in the company boosts morale and creates a more positive work environment.

For instance –  A retail company implements a communication platform where employees can share ideas for improving customer service. Management actively reviews and implements these suggestions, demonstrating that employee voices are valued. 

This transparency and responsiveness lead to a more positive and motivated workforce.

Better Crisis Management : During challenging times, clear and timely communication can help alleviate anxiety, maintain employee morale, and ensure everyone is on the same page.

Increased Collaboration : Effective communication breaks down silos between departments and encourages teamwork. When employees know what each other is working on, they can collaborate more effectively and achieve greater results.

For Example – An engineering team working on a new product leverages an internal communication tool to share project updates and milestones with the marketing team. 

This open communication allows marketing to develop targeted campaigns aligned with the product launch timeline, leading to a more successful product introduction.

Drive Innovations And Knowledge-Sharing :Open communication encourages employees to share ideas and knowledge, which can lead to new innovations and improved problem-solving.

Improved Accessibility : Internal communication tools provide employees with easy access to company information, resources, and announcements, removing roadblocks that might slow down their work.

For Example – A manufacturing company implements a mobile communication app where employees can access safety protocols, training materials, and production schedules on demand.

This eliminates the need to search for information through various channels, improving efficiency and productivity.

Optimize Change Management Initiatives : Effective communication throughout the change management process helps employees understand the rationale behind changes, reducing resistance and facilitating a smoother transition.

Increased Flexibility : Communication tools allow for flexible communication styles, catering to employee preferences and enabling effective communication regardless of location or time zone.

For instance, a global company with employees in different time zones uses a combination of asynchronous communication tools like discussion forums and video conferencing to facilitate project discussions. 

This allows employees to contribute to their schedules and fosters collaboration despite geographical separation.

Reduce Employee Turnover : Feeling valued and informed contributes to employee satisfaction, leading to lower turnover rates and reduced costs associated with employee replacement.

Improved Customer Service :When employees are well-informed about company policies, products, and services, they can better assist customers and provide a more positive customer experience.

For Example –  A bank uses an internal communication platform to keep employees updated on new loan products and eligibility requirements. 

Equipped with this knowledge, loan officers can provide more accurate information and tailored solutions to customers, leading to higher customer satisfaction.

Real Dialogue And Actionable Feedback : A two-way communication approach allows employees to provide feedback and suggestions for improvement. This valuable input can be used to address concerns, improve processes, and drive innovation.

Make Remote Work More Efficient : Communication tools enable seamless collaboration and information sharing among remote teams, boosting productivity and fostering a sense of connection despite physical distance.

Top Ways To Improve Internal Communication In Business

Building a strong employee communication strategy requires a multi-pronged approach. Here are some key steps to take:

Promote A Culture Of Open Communications : Encourage a company culture where employees feel comfortable asking questions, sharing ideas, and expressing concerns.

A study by Forbes found that 85% of employees believe that leadership transparency is very or somewhat important for their trust in the company.

Actionable Steps:

  1. Conduct surveys to understand employee comfort levels with communication.
  2. Implement anonymous feedback channels to encourage open expression of concerns.
  3. Recognize and reward employees who actively participate in communication channels.
  4. Organize company-wide events that foster informal interaction between leadership and employees.

Communication Should Be More Personal And Engaging

Personalize communication by tailoring messages to specific audiences and using a variety of engaging formats like video, infographics, and interactive content.

According to a study by SHRM, employees who report receiving frequent and relevant internal communications are 2.6 times more likely to be highly satisfied with their jobs. 

Actionable Steps:

  1. Segment employee communication based on department, role, or project involvement.
  2. Utilize multimedia content like explainer videos, short animations, and interactive polls to break up text-heavy messages.
  3. Encourage user-generated content by featuring employee testimonials and success stories in internal communication channels.


Involve The Leadership

Leaders must actively participate in internal communication, setting the tone for openness and transparency. They should regularly share updates, participate in Q&A sessions, and be approachable to employees at all levels.

A Watson Willis Towers Watson study revealed that companies with strong leadership communication outperform their peers by almost 50% on total return to shareholders. 

Actionable Steps:

  1. Hold regular town hall meetings or video conferences where leaders share company updates and answer employee questions.
  2. Encourage leadership participation in internal communication platforms for open discussions and engagement.
  3. Implement an “open door policy” where employees feel comfortable approaching leadership with questions or concerns.
  • Implement The Right Technology

Utilize internal communication tools that are user-friendly, accessible, and integrate seamlessly with existing workflows. Look for features like:

  1. Mobile accessibility: Ensure employees can access communication channels and information on the go.
  2. Real-time communication: Facilitate instant messaging and video conferencing for quick collaboration and updates.
  3. Content management: Enable easy creation, editing, and sharing of internal communication materials.
  4. Analytics and reporting: Track communication engagement metrics to measure the effectiveness of your strategy.

Employee communication platforms (ECPs) are a powerful tool that can address many of these needs. When choosing an ECP, consider factors such as company size, budget, and desired functionalities.

Start Improving Communication Today

Investing in strong internal communication isn’t a cost, it’s a strategic advantage.  Empower your employees with the information and connections they need to excel. Start building a more communicative and thriving work environment today!

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