Success Catalyst: Internal Communications Importance in Business

What Makes Internal Communications Essential for Modern Business Success?

What Makes Internal Communications Essential for Modern Business Success?

Last updated on April 30, 2024 at 05:01 am

Leaders have increasingly begun to realize the importance of internal communication in business. Companies that prioritize employee experience (EX) as much as customer experience (CX) can thrive in the competitive business environment. As the hybrid workplace becomes the new normal, leaders and employees must work together to create a work culture that removes communication bottlenecks. Employees crave frequent and clear communication from leaders to have trust in the company.

This blog highlights the importance of internal communication and outlines effective strategies for facilitating information flow within an organization. Let’s delve in.

What is Internal Communication?

Internal communication involves sharing information among employees so that each member of the team can fulfill their responsibilities. It involves information exchange up and down the employee and management chain, and it is a crucial driver of employee commitment. 

Internal comms impact business success. However, many executives are unaware of how to communicate profitably and efficiently within the organization. Organizations lose $2 trillion annually in productivity and time because of wasted communication.

Employees who are well-informed and strongly engaged can perform better in their roles. Mindful internal communication fosters a sense of unity and reinforces the employee’s importance within the company.

Internal communication is key to ensuring collaboration in a diverse workplace with employees scattered across multiple locations. Simply letting employees know how their work connects to business objectives can boost performance by 10%.

Why is Internal Communication Important in Business?

Strategic alignment of company objectives with employee goals is crucial for success. Many communicators believe that employee engagement is a success indicator for effective internal communication. As the workforce becomes a mixed bag of employees from multiple generations, sharing information that is accessible to each employee is crucial.

Leaders must ensure that employees never learn about company news from an external source. Effective internal communication is always important, not just during a crisis. Some of the reasons why internal communications is important are:

Employee engagement and productivity

Nearly 50% of workers report that their productivity is affected by ineffective communication. Everyone working in the company must be aware of the events that may happen within the company. They must know about policy changes, company news, and other updates from within the organization. With numerous communication tools available in the digital world, it is now easier than ever for communicators to share information.

Alignment and strategic goals

Ensuring that every employee understands their roles and responsibilities is essential for team success. Leaders are responsible for letting employees know that they are working together to achieve common goals. Keeping everyone connected and coordinated toward business objectives will improve overall productivity.

Building a strong company culture

The internal communication system of a company heavily influences a company’s culture. Employees who feel free to voice their concerns and opinions are more engaged with the company. When everyone knows about management emails, town hall meetings, and team events with clear information on dates and venues, they are more likely to participate, which will help foster a unified company culture.

Crisis communication

During a crisis, employees expect leaders to provide reassurance. When they are unsure about what is happening with the company, they become anxious about their place within the organization. This can cause a disconnect and make transitions more difficult. Clearly communicating what is happening with the organization and what measures are taken to control the crisis will put the employees at ease. When the organization provides answers that employees are looking for, unnecessary and widespread panic can be averted.

Transparency and inclusivity

The younger generation of the workforce expects its management to be transparent. A transparent workplace is more trustworthy, and employees should not be confused about what the norm is within the organization. Transparent communication channels that promote two-way communication eliminate secrecy with respect to information dissemination. Regardless of their background, when employees feel that their feedback is heard and respected, the workplace morale is heightened. 

Also Read: Internal Communications Campaigns: Great Internal Comms Plans

The Modern Landscape of Internal Communication

High information volume is the norm for most of the workplaces. Gartner reports that nearly 38% of employees are overwhelmed by the excessive volume of communication. Finding the right communication strategy facilitates information exchange and avoids overload. 

As the hyper-connected digital workplace constantly evolves, internal communication dynamics are also changing. Mass emails are a thing of the past because communicators must prioritize personalized communication to foster a sense of belonging. Some of the key trends shaping internal communications are:

  • Targeted messaging: Employees feel more deeply engaged with the company if they receive targeted messages curated explicitly for them. It cuts down unnecessary noise because the marketing team will only get messages relevant to them, while the finance team will receive different information needed for efficient performance. 
  • Video content consumption: Internal communication through live broadcasts, recorded videos from leadership, and video newsletters have a higher emotional impact. It also fosters inclusivity and accessibility, allowing employees who prefer audio and video information to feel connected to the management.
  • Mobile-first connectivity: Smartphones rule the daily lives of the modern workforce. Mobile apps mainly provide instant connection with frontline and deskless employees when they are scattered across geographies. Omnichannel communication can be easily implemented with BYOD policies

Tips for Effective Internal Communication

Typically, employees waste 3 hours and 27 minutes per week due to information overload. Effective communication management is crucial for enabling decision-making in complex work situations. 

Even though leaders understand the internal communication importance in business, only 56% believe that they are able to communicate an organization’s strategy and vision to its employees. This gap must be addressed as employees navigate global conflict, economic uncertainty, and back-to-office transitions.

Companies employ strategic planning for effective external communication with suppliers, vendors, and clients. Similarly, a well-defined strategy is important for internal communication success. Some tips to improve relationships with employees through effective communication are:

Proactive, transparent, and open dialogue communication

If the leaders fail to communicate issues, the rumor mills will take over and disrupt employee morale. Communicators must proactively identify issues and offer clarification. 

Instead of talking to the employees, management must encourage dialogue and communication to offer a platform for them to voice their opinions. More and more organizations are now adopting employee-generated content, enabling employees to become the voice of the brand. 

Tailored communication

Consider employees as important stakeholders and draft clear, personal, and concise communication. Avoid jargon and incorporate visuals to exchange information. Meaningful communication can be established only if it’s targeted at the audience, in this case, your employees. To strengthen trust and respect, incorporate pulse surveys, in-person or face-to-face interviews, etc. 

Regular communication

Consistent communication with your employees is the key to establishing company priorities. Manage information flow by using multiple channels, such as company emails, employee apps, social media, personal meetings, and other communication tools. Create a communication calendar to organize all types of communication exchanges and design the right strategy. 

Let’s Sum Up

Internal communication is undergoing recalibration post-COVID-19 as it is identified as a cornerstone for organizational success. The growing population of hybrid and deskless workers needs capable, well-resourced, and accountable managers with better communication skills. 

A communications audit will help companies refine their comms strategy to improve the channel framework. Strategic communication improves employee understanding and is supported by a plethora of digital communication tools. Getting the right channel mix for communication helps leaders reach all employees and improve satisfaction rates.

Frequently Asked Questions

How does internal communication foster employee loyalty?

Strategic internal communication makes every employee feel valued and included in decision-making. Clear communication of the company’s vision will keep the employees well-informed and well-connected. As employees feel that their values align with company values, they will stay loyal to the company, resulting in lower turnover rates. 

How do you employ internal communication during organizational changes?

Any organizational change will raise concerns among employees as there will be uncertainty in the workplace. Organizational restructuring, mergers, acquisitions, policy changes, etc., require proper communication with employees to address their concerns and manage resistance. This will enable a smoother transition to an upgraded business model.

How do we leverage technology to modernize internal communication?

Technology is a digital enabler that modernizes internal communication. Multiple tools, such as an intranet, instant messaging apps, collaboration software, video conferencing, and social media platforms, facilitate remote collaboration and real-time communication. 

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