Internal Communication is fundamental to improving business performance
Posted by jorbell on December 18, 2008
Successful companies see investment in internal communication as critical to riding the economic downturn. Companies with high employee engagement outperform competitors in profits, share value and new product launches. Firms are also increasingly using social networks, blogs, podcasts and video to motivate, inform and engage staff.
British business could add billions to profitability if it invested more effectively in internal communications (IC) that engage, motivate and listen to employees, says a new report from Headlines Corporate News.
The UK’s most robust companies have a strong culture of communicating with their employees and see this as critical to continued success during the downturn.
Called Strategic Internal Communications: Communication, Human Capital and Financial Success, the latest Headlines study combines exclusive surveys of IC leaders among UK companies with the latest industry research from across the world on how internal communication drives staff engagement and delivers measurable improvements in business performance.
“There is mounting evidence that internal communications can unleash vast internal value within an organisation to help drive growth and profitability,” says the new report. “Engaged employees are now recognised as key to business success.”
Among the findings:
- There is a direct correlation between business success and investment in internal communication. The UK’s top companies are all good at communicating with their people.
- Currently, only a fifth of UK employees are interested and actively involved in meeting business goals; a further third would like to be more involved.
- Two out of every five UK employees do no feel they are well informed about what is going on in their organisation – 68% of disengaged employees do not understand the goals and are confused about who does what.
- A 10% increase in investment in employee engagement can add up to £1,500 in gross profits per employee.
- The highest performing organisations use IC for both downwards and upwards communication.
- In the last three years, high engagement companies have brought significantly more products and processes to market than other firms.
- 84% of UK businesses still have difficulty recruiting new staff – it costs an average of £7,750 to replace a lost employee.
In this challenging economic and competitive climate, it is essential that UK business leaders now communicate more effectively with the unique pool of talent, knowledge and ability within their organisations. These employees can drive operational efficiency, generate innovative new product and service ideas, and improve valuable customer relationships.
Keeping company employees motivated and engaged is fundamental. Mounting evidence suggests the investment clearly pays off. For the last five years, the leading companies in The Sunday Times ranking of the Best Places to Work have consistently outperformed their competitors on the market. It’s also international. Revenues of the 100 Best Workplaces in Europe, published by the Financial Times, have grown an average of 20% a year.
The new Headlines report also reveals how UK companies now rank the business benefits of IC. Greater employee engagement is top of the list, closely followed by improving operational performance, fostering innovation, and providing essential support for strategic corporate change and transformation projects.
Publications remain a primary communication channel, but new technologies are increasingly being used to drive up levels of employee engagement. E-zines, corporate Facebook-style social networks, on-line blogs, podcasts and digital video are providing innovative ways for companies to foster collaboration, share knowledge and communicate with people who can make the business difference.
Source article: www.corpnews.co.uk