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5 Reasons Why Effective Internal Communications Reduces Turnover

by Dave Nerz

engaged employeesInternal communication is about much more than sharing news and corporate updates. It has a significant impact on all aspects of your business. From productivity, recruitment and retention through to collaboration and engaged employees, internal communications is essential to overall business health. And in the current coronavirus pandemic, the need for effective internal communications has really taken center stage. If you are struggling to get started on planning your internal communications strategy, here are five compelling reasons why it’s essential.

1. Engaged employees are more productive

Research tells us that highly engaged teams are 21% more profitable. It makes sense that engaged employees tend to be more passionate, motivated and inspired in their work. As a result, companies see higher rates of productivity and a reduction in staff absenteeism and turnover.

And one of the key drivers for employee engagement is internal communications. Listening to employees, inviting feedback and valuing their views are essential components of any strategy. Employers of choice are those that encourage two-way conversations with workers and promote ongoing dialogue.

Furthermore, top-performers align their communications strategies with company goals and objectives. Employees, therefore, have a clear sense of their contribution to the bigger picture and are more invested in the organization’s success. Your key staff less susceptible to being a recruitment target.

2. Engaged employees are more likely to stay with the company

As well as being more productive, engaged workers tend to stay longer with their employers. According to Inc.com, companies with effective communications strategies are 20% more likely to have less employee turnover.

And with the average UK employer spending £3,000 and 27.5 days to recruit and hire a new worker, improving retention rates makes sound business sense.

Good internal communications build trust and credibility with workers. A shared sense of purpose encourages employees to see meaning in their work. And it will also enhance your brand reputation as being an employer of choice. In today’s highly competitive marketplace, a strong employer brand gives you an advantage in attracting the best talent.

3. Disengaged employees cost companies

It’s estimated that disengaged employees cost the UK economy up £340bn annually. And it’s not just the associated absenteeism and reduced productivity that’s affecting profits.

When it comes to recognizing a disengaged employee, there are several tell-tale signs. Often sullen and withdrawn, disengaged workers rarely work late and only do the bare minimum. And it’s that all-round negativity that can have serious consequences. Disengagement can have a ripple effect. Before you know it, you have a serious issue on your hands.

Tackle any potential problem of disengagement head-on with an effective internal communications strategy. Keep staff engaged and onboard with regular, authentic messaging. Engage in two-way conversations and encourage feedback to create a constructive workplace where employees thrive.

4. Informed employees are happy employees

Great internal communications are an effective way to keep employees informed. If you take the recent COVID-19 crisis where layoffs and uncertainty around job security became a common issue, great internal communications helped subside any worries that an employee may have had.

A brief update from a CEO around what’s going on can help relieve the stress that employees encounter, or just being informed of the bigger picture for the company and the management team’s plan to deal with the crisis, could go a long way towards keeping employees happy.

You only need to look at the story of how Gravity’s CEO dealt with the recent crisis, to see how great internal communications played a role in helping save the jobs of their entire workforce.

5. Internal communications can help build company culture

A thriving company culture is essential to the success of any organization. With effective internal communication, the views and vision that a CEO has for their company is on display for all to see.

In larger organizations where there are multiple employees across multiple locations, maintaining the same company culture in all offices becomes more difficult. With an effective internal communications strategy, this becomes a lot easier as the company culture is visible for all employees to see.

Effective Internal Communications: Key Messages

The bottom line is that better internal communications will deliver on engagement, performance and productivity. Get started on an effective internal communications strategy and see your company achieve improved business results with less concern for turnover and retention issues.

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Tags: employee retention | Posted in: Employers

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