Did you know that companies with strong internal communication practices see a 50% reduction in employee turnover rates (Gallup)? That’s not just a statistic; it’s a wake-up call.
Communication lies at the heart of every successful retention strategy, and in today’s digital age, emails or monthly town halls are simply not enough. Employees expect to be consistently informed, involved, and valued, all the time. Anything less is a potential disaster in-waiting.
Out of the loop
Let’s say a retail company announces a major change to employee schedules in a quick email, assuming everyone will read and understand it. The email doesn’t explain the reasons behind the change, and no follow-up meetings or discussions are held to address concerns.
Store managers are overwhelmed with questions they can’t answer, employees are blindsided, and frustration grows from all quarters of the organization. Some even look for jobs elsewhere.
Had leadership taken the time to explain the reasoning behind the changes, listen to feedback, and involve employees in the conversation, the rollout could have gone smoothly. Instead, this communication breakdown breeds mistrust and disengagement – exactly the kind of atmosphere strong internal communication is meant to prevent.
The Cost of Poor Internal Comms
When communication falls down, the impact can be felt across your organization.
Consequences of poor internal comms include:
- Retention Challenges: Around 34% of workers claimed poor communication lowered their job satisfaction – 22% are looking for a new job due as a result (Business Forums International).
- Lost Trust: 33% of employees identify lack of transparency as a significant issue – 43% have lost trust in leadership due to it (Brosix).
- Operational Inefficiencies: Poor communication reduces productivity by 40%, leading to operational hiccups that only waste resources and hinder growth (Grammarly).
- Stifled Innovation: Without open channels for idea sharing, employees are less inclined to contribute, leaving organizations unlikely to be first to market (Deloitte).
On the flipside, companies that invest in building a culture of communication enjoy lower turnover, alongside the benefits of engagement, productivity, and alignment.
What Good Internal Communication Looks Like
Strong internal communication is about creating that ongoing, two-way dialogue where employees feel heard, valued, and aligned.
Key indicators of good internal comms include:
- Clarity and Transparency
Leaders need to communicate not just the what, but also the why. Clear communication helps employees understand how their work fits into the bigger picture. - Frequent, Multi-Channel Updates
A mix of emails, video messages, team huddles, and collaborative platforms help employees stay informed, regardless of location or role. - Two-Way Feedback Channels
Encouraging employees to share their thoughts through surveys, town halls, or direct manager check-ins creates a culture of openness. - Tailored Messaging
Communication should be relevant to the audience. Frontline staff might need more operational updates, while corporate teams may focus on strategic goals. - Consistent Recognition
Celebrate milestones, highlight achievements, and acknowledge efforts. Employees who feel recognised are more inclined to stick around.
Why Communication Matters: The Numbers Don’t Lie
- Retention: 81% of employees who feel heard are more likely to stay with their company
- Engagement: Companies with good comms are x3.5 more likely to outperform peers
- Productivity: Teams with strong comms practices see productivity increase by up to 25%
- Savings: Poor comms cost large companies an estimated $62.4m a year in productivity
The Emotional Case for Better CommunicationIf you don’t listen with empathy, you’re just waiting for your turn to talk. This sentiment from renowned communications expert Celeste Headlee captures why so many companies fall short in their efforts to connect with employees. For decades, communication in the workplace was about efficiency – pushing out information in bullet points and memos, treating employees like gears in a machine. But that model simply does not work in today’s workplace. People crave connection, not just instructions (see chapter 2). Good communication isn’t ticking a box or holding another meeting. It’s creating a workplace where every individual feels seen, heard, and understood. It starts with listening – truly listening – to what employees are saying, whether that’s in a one-on-one meeting, an anonymous survey, or even a casual chat over coffee. The Shift from Broadcasting to Connecting Critics of traditional workplace communication, like Simon Sinek, argue that most companies focus too much on “broadcasting” messages and not enough on cultivating trust. Employees don’t want to know what’s happening; they want to understand why it matters. Crucially, they want to feel their voices matter. Good communication looks like:
The Emotional Impact of Better Communication When employees feel heard, something remarkable happens: they start to care more. They’re not just clocking in; they’re showing up with purpose. As Brené Brown, a leading researcher on vulnerability and leadership, says, “Connection is why we’re here. It gives purpose and meaning to our lives.” The same is true for work. A New Approach to Communication To foster this kind of environment, companies must unlearn top-down messaging and embrace a culture of openness, curiosity, and authenticity. It’s no longer just about the words spoken or written but about the feelings those words inspire. This will likely require a functional shift and an emotional one. But it’s the difference between an employee who feels like a cog in the wheel and one who feels like an integral part of the team. Next stepsYou may now be asking “how can I improve internal comms today?” A well-designed digital workplace – with an intranet at its core – is a good place to start. This ensures that:
Your roadmap looks something like this:1. Personalize your communication One-size-fits-all messages no longer resonate in a diverse workplace. An intranet enables personalized communication by tailoring updates and announcements to specific teams, departments, or individuals. With features like segmented newsfeeds, personalized dashboards, and role-specific notifications, employees only see the information that’s relevant to them. For example, marketing teams receive updates on campaign results, while warehouse staff get logistics notifications. This reduces noise and helps employees feel valued because their unique needs are better addressed. 2. Make every employee feel heard An effective intranet isn’t just a broadcasting tool – it’s a platform for two-way dialogue. Features like feedback forms, discussion forums, and employee polls enable employees to voice opinions and share ideas. Integration with tools like chat platforms or Q&A sessions during town halls creates spaces for open dialogue. No surprise that when employees feel like their opinions matter, they’re more likely to stay engaged and motivated. 3. Simplify content creation with AI Creating and distributing content across a large organization can be daunting. Modern intranets equipped with AI tools streamline the process. AI will help you and your team draft announcements, generate templates for newsletters, or suggest content for internal blogs. Automated workflows also ensure that important updates are distributed without much manual input. By reducing the burden of content creation, teams can focus on crafting meaningful, impactful messages that land. 4. Get detailed employee insights Understanding how employees engage with communication is key to improving it. A well-designed intranet provides analytics and insights, like which announcements are being read, which pages are the most visited, and which areas are underutilized. These metrics allow you and your team to identify gaps, refine your strategy, and ensure communication efforts are resonating. For instance, if a new policy announcement has low readership, you might want to make adjustments to the tone or medium. ConclusionStrong internal communication is more than a tool. It’s a transformative force. In today’s workplace, where connection can feel elusive, clear, empathetic, and consistent communication is key to boosting retention, productivity, and innovation. Companies that invest in it build workplaces where employees feel valued and inspired to do their best work. From fostering trust and transparency to building a culture of recognition and collaboration, the benefits are undeniable. The risks of neglect are equally as stark. By leveraging tools like a modern intranet and embracing a mindset of listening and connection, you can overcome the challenges of miscommunication to build a workplace where every individual feels heard, informed, and empowered. The question isn’t whether to prioritize it, but how soon you can start… |
How can Haiilo help?
When communication fails, your best employees walk. Haiilo empowers HR teams to build a connected, motivated workforce through authentic communication and real-time insights.
We combine social intranet, communications, advocacy, employee listening, and actionable insights in one seamless experience.
- Create an environment where employees feel recognized and connected
- Make every employee feel valued with personalized, relevant updates
- Reduce tool fatigue with seamless integrations into your HR tech stack
- Gain real-time sentiment data to track engagement and well-being
The Haiilo impact:
- 67% better insights into employee needs
- 300% ROI through improved retention & productivity
- 21% higher profitability in engaged workplaces
Turn internal communications into your competitive advantage.
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