Yes, it’s true: effective employee communication is vital for every business. But, have you discovered why employee communications matters? Statistics reveal that companies’ success is a result of employees’ proactiveness, which first begins with effective communication from their superiors. They also show the downward spiral a business can take when lacking simple, effective communication. Here are 50 employee communication stats to understand how important communication is in the workplace and how valuable it can be for your employee’s performance.
Effective Employee Communication Increases Productivity
Proper communication can positively influence employee productivity. Here are some statistics linking the relationship between effective internal communication and productivity.
- A report by McKinsey shows that if you communicate effectively with your employees, you can boost their productivity. Effective communication can increase a team’s productivity by between 20 and 25%.
- 97% of employees believe both a communication strategy and proper communication affect their tasks daily.
- Effective communication can boost employee productivity. Research shows that 33% of employees believe ineffective communication and a lack of open communication significantly affect employee morale.
- Do you listen to employee complaints and act on them? According to Forbes, employees who feel their voice is heard are 4.6 times more likely to feel empowered to perform their best work.
- 85% of employees report they are most motivated when the executive management gives them regular updates on the company news and other related information.
- Do you have a system for rewarding your employees in circulars or company-issued notices? 69% of employees admit they would work harder and put more effort if they felt appreciated.
- Employees in an organization with proper communication are more informed and perform better than their peers by 77%.
- A survey by the Computing Technology Industry shows that 28% of late submissions are due to poor communication.
Increase Retention Through Employee Communication
Create an environment where employees understand company goals and are allowed to contribute their ideas or suggestions to help increase retention. Here are some statistics to support effective employee communication increases retention.
- By adopting effective communication, your business can increase employee retention 4.5 times more than companies with poor communication. Effective communication increases retention. Therefore, effective team communication can help your company retain the top talent.
- According to this study, a business with effective communication that uses proper communication channels is 50% likely to have low employee turnover.
- Proper communication and a strong sense of community have kept 54% of employees in an organization longer than they had intended or planned to be in the company.
- As high as 74% of employees feel left out on important company information and news, resulting in low job satisfaction.
- Among job seekers, 47% admit they consider the company culture. Effective communication is essential in creating a positive work culture, which could draw new and able talent to your company.
- Demonstrating empathy is a show of leadership effectiveness and emotional intelligence. 96% of employees feel that showing empathy is a great way to enhance retention.
Build Trust With Your Employees Through Proper Communication
Communicating with your employees honestly, clearly, and consistently helps foster an elevated level of trust with them. Tools like digital signage, weekly team meetings, and quarterly performance reviews build trust and establish a consistent line of communication making your employees feel valued.
- 80% of American employees believe effective communication facilitates trust, and thus, honest communication is essential for developing trust with their employers.
Earn and Save More With Effective Employee Communication
Your business can soar to greater heights and increase revenue by effectively communicating with employees. Numbers don’t lie, and here are interesting statistics to show how effective employee communication can increase your revenue and business savings.
- Highly engaged employees can boost your operating income by 19.3% every year. Therefore, encourage proper collaboration tools and communication channels to engage your employees.
- The benefits of proper business communications extend to shareholders as companies considered effective communicators have 47% more returns to shareholders.
- Did you know that disengaged employees can cost a company more than $450 billion every year? The loss is a result of loss of profit, retraining time, loss of sales, and wage dollars.
- A company with an effective communication strategy has a 3.5 times higher chance of outperforming competing companies. So, how you communicate with your employees determines your business success.
- If your business has highly-engaged employees, it can grow and bring in an additional 21% profit than organizations with disengaged employees.
- By switching to VoIP calls, a small business can save 40% on local call costs.
- Effective communication can also benefit your salesforce. According to Gallup, a company can increase sales by 20% by actively engaging its employees.
- If you would like to increase the chance to improve your company’s opportunity, focus on employees. Frontline employees contribute 80% to a company’s opportunity for improvement.
Reasons Why Your Business May Not Be Communicating Effectively
Do you know why your business may be having a challenge communicating effectively? Here are some possible reasons.
- Shockingly, 60% of companies are yet to implement a long-term strategy for internal communications in their business. If your business hasn’t implemented a strategy yet, it could be the hindrance causing ineffective communication.
- In a VMA group study, only 54% of the participants agree that progress on communications objectives is first well-researched, measured, and evaluated using Key Performance Indexes and metrics.
- While most businesses believe they are putting their best foot forward, 39% of surveyed employees strongly believe members of the company don’t collaborate enough.
- Do you believe you hired managers with impeccable communication skills? What do your employees have to say? 91% of employees believe their managers lack effective communication skills. Fortunately, you can always organize refresher courses on communication skills for your staff.
- If your company has been underperforming, have you identified why? 86% of employees cite ineffective communication and lack of collaboration as the main causes for workplace failures.
- 86% of corporate staff believe poor collaboration and ineffective communication cause failures in the workplace.
- Since you adopted an internal communications tool, have you measured its effectiveness? 60% of professionals admit they don’t measure internal communications outcomes.
- Interestingly, 21% of internal communicators on a global scale revealed they don’t use any formal planning.
- There is always a discrepancy of opinion between executive staff and employees. While 44% of executive staff consider the internal communication in the organization to be excellent, only 20% of the employees agree.
- Although 93% of pros admit that creativity is essential in internal comms, most are missing the opportunity to put it to use.
The Link Between Technology and Effective Internal Communication
The technology you use directly impacts the effectiveness of your internal communications. Technology can make communicating easy, quick, and more efficient.
- Since the pandemic, 42% of the American labor force has been working from home. Businesses have had to adopt new technology and communication technologies to connect with colleagues.
- Do you use the intranet for internal comms within the organization? Sadly, only 13% of employees use intranets daily since most are obsolete or difficult to use. So, employees use them less often until they finally stop using them.
- An Alfresco survey done on more than 753 business professionals shows that almost 83% of professionals rely on technology to collaborate.
- Effective communication could be the barrier that is holding your business back. 57% of employees report receiving information but no clear directions. The report also shows that 69% of managers don’t feel comfortable communicating with employees.
Do Your Employees Understand Your Business Goals?
When your employees understand your company’s goals, they can work towards them. They can also make it easy to connect with customers, translating to higher revenue. But do you often communicate your business goals to your employees, and if you do, do they understand your goals?
- According to statistics, only 5.9% of businesses communicate their company goals daily.
- You have the company mission, vision statement, and goal. But do your employees know the strategy to use to achieve these goals? 72% of employees admit to not fully understanding the company’s strategy. You can adopt SHRM to align employee effort with the organization’s goals.
- According to Deloitte, only 23% of executive managers admit that their companies are good at aligning their employee goals with the overall business goals. Can you say the same for your business?
- Sadly, only 40% of internal communications professionals understand their contribution to a company’s strategy. How often do you think about your employees and what they care for most about their jobs?
What Are Some Prominent Methods of Internal Communication?
There are numerous internal communication options. Here are statistics on the most prominent methods and the most preferred.
- 29% of companies prefer VoIP over office phones since it’s easy to forward VoIP calls to mobile phones.
- Most people are visual learners, and so are employees. How do you communicate with your remote workers? 75% of employees admit it’s easier to watch a video or infographics than go through an email or text.
- 55% of employees believe that using a mobile app can help them feel more engaged with the company.
- Since the onset of the coronavirus, businesses now rely on communication channels like Zoom and Slack. 40% of remote workers report mental exhaustion due to video calls.
- 205.6 billion emails are shared worldwide every day.
- Only a third of the 205.6 billion are opened. This shows texting can be a void in business communication. So, you need to adopt new communication channels and apps like Slack or opt for video calls through zoom.
- 44% of employees would prefer their companies to adopt broader internal communication tools for workplace communication.
- Due to the increase in remote, Slack has more than 9,000 new and paid accounts that have been signed up since 2020.
- 16% of managers prefer emailing to face-to-face interactions.
Achieve KPIs with an Effective Employee Communication Strategy
The above communication statistics show the importance of communication to overall business strategy. Let’s face it: successful relationships encompass good communication, whether with friends, family, or at the office. Once a proactive communication strategy has been implemented and strengthened, your company will start to reap the benefits. Through simple deployments on digital signage or monthly team meetings, employees will start to feel valued, and encouraged to hit KPIs. Communication is truly the key to achieving success.