There’s irrefutable proof that effective internal communication positively impacts financial performance. So, why’s it still not good enough?
Clear, consistent well written internal communication delivered through the right channels increases employee engagement and in turn impacts financial performance. Merely communicating with employees does not ‘tick the box’ of engaging the workforce nor does it secure an organisation’s success.
In times of change and challenge, clear consistent employee communication is the key to successful implementation as well as financial performance.
A Towers Watson study estimated a loss of up to £400,000 per 100 employees annually due to time wasted clarifying poor internal communication.
Conversely, it proved companies with highly effective internal communication post +47% shareholder returns vs least effective.
Quality IC is read and trusted. It improves employee engagement and associated KPIs.
A 10-year study from 2004 – 2014 by Towers Watson proved the coloration between effective internal communication and financial performance.
Organisations with highly effective communication and change management practices are more than twice as likely to significantly outperform their peers, versus organisations that are not highly effective in either of these areas.
People voluntarily leaving is a significant cost to any employer. Employee replacement costs can be as high as three times the person’s annual salary.
A Watson Wyatt study found that companies that communicate most effectively are more than 50% more likely to report turnover levels below the industry average compared with only 33% for the least effective communicators.
Inadequate, inefficient and insensitive communication impacts employee motivation, in turn driving the employee’s decision to come to work each day. One company study revealed that 18% of the variation in sickness and absence rates across the company was due to variations in communication practices. A more general study showed that where employees feel fully informed, absence rates are below average.
Studies have shown a positive relationship between factors of internal communication and factors of employee engagement. Quality internal communication is linked to commitment, discretionary effort, and meaningful work; all evidence of engagement. In addition, results also indicated that communication channel satisfaction and channel combinations were linked to employee engagement.
What are the barriers to delivering effective internal communication?
The challenge is how to ensure employee comms are effective – clear, compelling and consistent when you lack:
• The dedicated in house skills (not simply the brand/comms team looking at internal comms from time to time)
• The time to devote to properly writing them
• The marketing sized budget to hire external specialists
Our response to help organisations improve the effectiveness of their internal communication is Muse.
Muse is a digital platform specifically developed to address these barriers, as well as provide the support Woodreed know internal communicators need. It’s proven to improve the quality and effectiveness of internal communication.
It guarantees quality copy for every type of internal communication quickly and easily. Members simply upload their copy for editing or brief what they need writing and it comes back written and ready to send.
The platform also includes a learning and development area of carefully sourced and distilled content relating to employee engagement, culture, leadership and other areas of interest.
Muse also includes a community area where up to 10 non-competing brands can talk, share best practice, seek advice and so on, should they wish. In addition, each member organisation also get its own secure locked zone where up to 15 colleagues can collaborate.
Muse uses a proven platform from Woodreed’s Swedish tech partner who work with clients across the globe, delivering enterprise social business platforms for employees. Woodreed uses bespoke versions of the ESN platform for several of their automotive and financial clients.
We’re on a mission to break down the barriers that stop effective internal communication. Raising standards, increasing employee engagement and positively impacting KPIs as we go. Come Muse with us and we’ll prove it!