Effective communication between employees is a key factor in achieving organizational success.
Miscommunication on any level of the organization creates a domino effect, causing not only financial damages, but also affecting employee satisfaction, motivation and productivity.
Areas for Improvement
- 60% of organizations do not have a long-term internal communication strategy. (Workforce, 2019)
- Only 15% of respondents said their companies were doing a very good job fostering communication. (15five)
- 60% of communicators are not measuring internal communications. (Poppulo, 2017)
- Generational divides are causing problems, Baby Boomer managers and Millennial employees often clash over communication styles. (15five)
- 40% of Millennials say Boomers are less open, and 38% of Boomers say Millennials are more honest but too brash or opinionated. (15five)
The Cost of
- There is an average loss of $62.4 million per company each year because of poor communication to and between employees. (SHRM)
- Miscommunication costs smaller companies of 100 employees an average of $420,000 per year. (SHRM)
- The average cost of miscommunication is $5,200 per employee per year. (SHRM, 2017)
Channels of Employee
- 22% of companies do not use any print channels for communication. (Gatehouse, 2020)
- 73% of respondents rated the usage of mobile as a top priority. (Sociabble, 2019)
- Video communication is rated as the top digital channel, 68% believe the usage of video will increase by 68% over the next year. (Sociabble, 2019)
Common Employee Communication Pitfalls
- The top challenges in 2020 are excessive volume or communication (45%), hard-to-reach employees (43%), and lack of line manager communication skills (43%). (Gatehouse, 2020)
- The most common reasons for miscommunicating are lack of specificity, negative instructions, lack of urgency, lack of appropriate tone, lack of focused attention, and lack of directness. (SHRM, 2017)
- Two-thirds of employees do not receive sufficient information during corporate change. (Towers Watson, 2014)
- 30% of employees ignore their employer’s emails. (DynamicSignal, 2016)
Communication Leads to an Increase in Overall Employee Performance
- 62% of employees said that accessibility to company information directly affects job satisfaction. (DynamicSignal, 2016)
- 85% of employees said they are most motivated when they receive regular updates on company news. (DynamicSignal, 2016)
- 87% of employees want to work for a company that is transparent and open. (Atlassian)
- 74% of workers would work harder if they were better appreciated. (WHRI, 2017
The Value of Employee
Communication for Businesses
- Organizations with highly effective internal communications had 47% higher returns to stakeholders. (Tradepressservices, 2019)
- 81% of workers value open communication more than perks such as free food and gym memberships. (15five)
- The top three activities of internal communication were corporate announcements (87%), helping employees understand the vision and strategy (88%), and encouraging two-way communications with employees (80%). (Gatehouse, 2020)
The Value of Collaboration Software
Asana recently partnered with IDC to discover the ROI of the digital workspace and how more companies can benefit from investing in and effectively using collaboration software. In analyzing the findings, the businesses that use collaboration software reported significant positive changes in employee communication that strengthened many other aspects of work.
- 82% of companies said collaboration applications help hire talent, and 76% said they help retain the talent. Companies under 1,000 employees reported 90% support in hiring and retaining talent.
- 68% of businesses stated that collaborative team applications impact productivity. Out of these:
- 77% reported faster completion of projects
- 68% noticed better communication
- 65% started developing new digital actions
- 73% could properly give recognition for finished work
Besides researching how collaboration software impacts a company, IDC also interviewed companies using Asana as their model’s foundation. They gathered data before and after using Asana and their findings only cement the significance of collaboration applications.
- Businesses that used Asana report a 437% 3-year ROI.
- It only took companies six months on average to break even.
- Organizations reported 5.5% higher net productivity per daily Asana user or 2.5 weeks more productive time per user.
- Employees had 79% more time for innovative and creative work. This amounts to 7 more hours per week per person.
- Searching for information was reduced by 55% saving about 2.5 hours per week.
- 34% more projects got delivered on time.
- The time needed to execute business processes was 42% faster.
- Client or customer satisfaction increased by 11%, whereas employee satisfaction noticed an increase of 72%.
It is essential that employees, regardless of the channel used, have open communication and through continuous feedback can help achieve organizational success.