Why Employee Communication Programs Fail and Hurt Bottom Line Results
ByBy Mary Lynn Coyle and Jeannette Paladino
Employee communication is often the poor stepchild of companies that ignore their employees’ overwhelming need and desire for information so they can do their jobs better. Yet research shows that organizations excelling in internal communications also excel in financial performance.
A Watson Wyatt study found that companies with highly effective communication practices have a 19 percent higher market premium and a 47% higher shareholder return. A Towers Perrin study found that four out of five workers are not engaged in doing the things that drive results. That’s why we believe that companies need to instill a total Culture of Communication throughout their organizations that is open, consistent, simple, and caring.
Why Employee Communication Programs Fail:
- Behaviors don’t match the message, especially senior executive behaviors
- Communicating is not viewed as an important process or asset
- Communication is blocked at many levels – up, down and across
- Complicated and lengthy approval processes prevent timely distribution of information
- Employees don’t hear things first, thus a loss of faith develops
- Too much is communicated and more important messages are lost in the clutter
If communication with employees is broken, you will never realize your corporate vision. “Broken” can mean something as elementary under-communicating or communicating the wrong messages. Employee satisfaction suffers, which, in turn, hurts customer satisfaction. And, if that happens, the bottom line is bound to suffer as well.
Change programs can fail when management doesn’t see the link between internal and external communications. It is employees who are most often the primary interface between the company and its targets. Customers are the most obvious and important external audience. Without them there is no business.
The global economy and new technologies are transforming the way organizations communicate. To bring their vision of a new, highly competitive company to life, it is essential for management to build and nurture a total culture of communication that includes internal and external audiences.
The Tenets of a Culture of Communication
We believe there are five components to a Culture of Communication. Trust is at the core – all communications must be reliable, truthful and contain the full story.
The other four components are:
- Openness – there must be an unwavering commitment to and support of a healthy two-way communications environment
- Simplicity – communications must be clear, meaningful and accessible
- Consistency – messages must be strategic and integrated
- Caring – there must be concern for the individual
Establishing a Culture of Communication will result in improved communication effectiveness that will help organizations achieve their change plans, growth plans and performance goals. Companies that create best practices in all areas of communications, both internally and externally, will truly transform themselves.
What is your company doing to create a Culture of Communication?
Mary Lynn Coyle is a corporate communications, branding, public relations and marketing communications professional with experience in management consulting, executive search, information and high technology, manufacturing, consumer products and non-profit arenas.
Mary Lynn Coyle is a corporate communications, branding, public relations and marketing communications professional with experience in management consulting, executive search, information and high technology, manufacturing, consumer products and non-profit arenas.Mary Lynn Coyle is a corporate communications, branding, public relations and marketing communications professional with experience in management consulting, executive search, information and high technology, manufacturing, consumer products and non-profit arenas.
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Great post. Too many CEOs see internal communications as a cost center instead of a profit generator. Companies are increasingly going to need all the brain power that they can muster to innovate and compete in a global marketplace. Those that tap their employees for information and inspiration will have a competitive advantage. And those that don’t will go the way of the dinosaur.
Could not agree with you more on this point. You gave me an idea for my own blog with this article. I’ll cite you and trackback in a day or so…