Why does communication with employees matter?
This factsheet looks at internal rather than external communication (for example, with customers, investors or other stakeholders). It may be helpful to read it in conjunction with our factsheet on ‘employee voice’ which covers the history of employee involvement, the mechanisms of two-way communications, and its potential benefits. Our factsheets on employee engagement and employer branding are also relevant.
Effective internal communications is a central means to achieving business outcomes and something for which the whole organisation is responsible. It supports the smooth running of organisations, successful change programmes and good leadership on vision, strategy and values.
It is also a critical aspect of employee engagement, which in turn, promotes better performance, employee retention and well-being. Employees are more engaged when information flows freely and they are aware of organisational activities and management decisions that affect their jobs.
Poor communication, on the other hand, acts as a barrier to employee engagement. Despite the need for communication to be high up the agenda in the organisation, our successive Employee Outlook surveys have shown that only around one in ten employees feels fully informed about what is happening in their organisation.