Employee Communication: Types, Benefits & Best Practices

Before we get into the depth of employee communication and its significance in the workplace, let’s understand the term with a simple example.

From an organizational or business perspective, this example teaches five crucial lessons:

• Lesson #1: Effective employee communication is vital
• Lesson #2: Poor communication can negatively impact a company’s growth
• Lesson #3: Communicating significant updates across the company is vital
• Lesson #4: Having a robust people engagement platform is more important than ever
• Lesson #5: Besides missed sales opportunities, ineffective or poor employee communication can wreak havoc on multiple aspects of a business, which includes employee engagement levels, employee turnover rate, customer service, project delivery deadline, litigation cost, and shareholder returns.

Today, the seamlessness of employee communication in the workplace dictates how operations occur and the tangible impact on RoI. Effective employee communication is the foundation of an engaged workforce, and let’s understand this in detail with some interesting examples.

What is employee communication?

Employee communication means sharing ideas, feelings, and information between employees and employers of a company.

Before the pandemic, employees relied on real-time collaboration and synchronous communication with their peers. But this isn’t the case anymore.

Since remote working environments are here to stay, there’s a dire need for employers to:

• Rethink their employee communication strategies
• Adopt asynchronous communications
• Keep the employees well-informed
• Eliminate cross-departmental silos
• Improve employee experience
• Reduce information overload
• Make sure there’s a social intranet for employees to stay connected

Employee communication is vital for a business’s success. It is the ‘glue’ that holds a company together. An effective communication strategy helps improve employee productivity, employee engagement, and workplace collaboration. All of these build a strong company culture.

How you communicate your company’s vision, values, and strategies directly impacts employees' feelings about your company.

Now that you have understood the basics of employee communication let’s know the types and their importance with some interesting examples.

The cost of poor communication is exceptionally high

The shift to remote/hybrid work and the emerging metaverse has cemented the digital reality, but the workforce faces new challenges. Poor communication is a serious issue, and still, many leaders don’t realize its cost impact.

According to a combined research report by The Harris Poll and Grammarly, poor workplace communication is a prevalent problem that continues to burden employees and businesses.

The findings of this study can’t be ignored. While the cost is staggering, the facts illuminate the wide-ranging impacts of poor communication today and the serious need to rethink engagement and productivity in the workplace.

This survey's findings also reveal the connection between poor communication and employee turnover and morale. The report says that 86% of the employees experience communication problems at work. In addition, employees experiencing miscommunications many times throughout the day are more likely to be stressed.

A breakdown in the communication process frustrates employees, creating a domino effect on:

• Employee engagement
• Employee productivity
• Customer experience

As the workforce evolves, improving your communications with outstanding clarity and nurturing employee confidence is imperative.

Benefits of effective internal communication in the workplace

Building a good internal culture is like building a house. If the foundation isn’t substantial, it will collapse eventually. Effective team communication makes your cultural foundation healthier and stronger. The benefits are incredible when you have the right internal communication strategy. We are highlighting a few here:

1. Boosts employee engagement

Employee engagement is the holy grail for businesses because it is the lifeline of a company. Employees who are not engaged are less productive, and their stress can seep into their overall well-being. They will be more frustrated and unable to give their 100% at work, which can dampen the spirit of the business.

According to a McKinsey report, a boost in employee engagement can increase productivity by 25%, impacting the entire business. However, just 3 % of employees feel engaged at work.

When businesses get their internal communications right, they improve employee engagement. This shows a business’s success quickly as organizations with higher employee engagement earn 22% more profits.

While some employees are proactive in getting information and talking regularly, not all employees are the same. It is the responsibility of the managers and top-level management to put effort into regular communication. Internal communications can help employees feel valued and important.

2. Ensures organization-wide transparency

Effective employee communications ensure transparency in an organization, and openness ensures trust. Employees don’t want to learn about a big announcement through a third person or external sources. They want to learn through their company leaders or top-level management.

According to a study by Slack, 80% of employees are interested to know how decisions are made in their organization. 

This means they want increased transparency to understand how their organization works and how the management makes decisions. Transparency enables employees to trust their leaders, and this fosters accountability.

The same Slack study also reveals that as many as 55% of organizations felt transparent, and only 18% of employees thought the same. Internal c communications can help bridge the gap in transparency and enable employees to trust and work towards the common company values and mission.

Internal communications enable swift delivery of information, whether it is from top-level managers or between employees. This flow of information enables transparency, so every employee is on the same page as others. This can help build a strong workplace culture.

3. Keeps employees informed and updated

Internal communications aim to keep employees up to date about any information they need. A Bambu report said 80% of employees want to know what is occurring in their business.

In the same report, 77% of these people explicitly specified it can help them work better, while 66% said it could enhance their relationship with their colleagues. This shows how eager employees are to know news about their organization.

An effective internal communications strategy can keep employees in the loop about company news. For instance, any change in the company policy, work culture, or how the business is performing must be communicated to the employees.

4. Helps in the time of crisis

Internal communications can help in crisis management. In an ideal world, organizations don't experience any problems. But the reality is far from it. Mergers, acquisitions, macroeconomic crises, pandemics, political situations, etc., continue. An organic action might need to lay off a few or many employees or make any unpleasant decisions in times of crisis.

In some cases, teams have to restructure and so on. A crisis can affect a business of any size, and its people require precise information about what is happening in the company. Internal communications can help manage and ensure there is no misinformation.

Rumors can spread quickly, and this can cause toxicity in the workplace. Additionally, people might lose trust and become less engaged due to poor internal communications. However, organizations with a proper internal communications strategy can flourish even in tough times.

Internal communication can make difficult conversations easier so employees can understand the complete picture and why something unpleasant, such as layoffs, is taking place. This can help employees respect their organization, creating an open discussion environment.

5. Helps with external communication

Internal and external communications are often seen as separate entities in the business world, but they are not. According to a Bambu report, 63% of employees said proper internal communication could help them become brand advocates and spread the word about their company.

Think about it. Employees are acting as company insiders as they work in it. When employees say anything about the company, whether good or bad, it will hold more weight because they are part of the organization. This can have positive or negative effects depending on what the employee says about the company.

When internal communication is done right, employees know what is happening and feel like a part of the team. Employees who have these positive feelings say good things about the organization. Whether on social media or with family and friends, these employees will have encouraging words regarding the organization.

In this way, employees can be credible ambassadors when they are satisfied with how they are being treated. Employees who have direct contact with customers will also benefit from internal communications. How they feel about the company will be reflected in how they speak to customers.

6. Fosters company culture and values

A strong workplace culture can enable businesses to retain and attract the best talent, positively affecting business outcomes. According to a Gallup study, work culture is vital for a business's success, and top employees are interested in working at a place with an exceptional work culture.

Internal communications can help foster a positive work culture and profoundly impact the bottom line. Company culture and values woven into internal communications can enable employees to feel good about working there and boost a healthy work environment.

A thriving workplace culture helps align employees with organizational goals. According to a study, just 40% of employees understand how they contribute to an organization. Internal communication enables employees to clearly understand their importance in the bigger picture, encouraging them to work together as a team.

Internal communications can help people effectively and efficiently work together. Without it, the workplace environment can turn toxic, pushing good employees to leave the organization. Internal communications have the power to foster work culture and can help in the overall workflow.

7. Enables feedback and innovation

Effective collaboration is required to run smoothly and reach the necessary business goals. Internal communications facilitate that and help create a place of openness whereby employees can discuss and pitch their ideas.

Employees can put their views forward so the top-level management can understand their employees better. This type of two-way communication can enhance relationships between all the stakeholders in the organization and ensure a culture of innovation.

Feedback enables employees to put forward what they think. It is about a particular flow of things or how they are expected to work. Employees who feel their opinions matter are more likely to be connected to the company.

This can help increase engagement and boost productivity. Employees appreciate feedback, and a solid internal communications strategy ensures feedback and discussions are a routine part of the business.

What is effective and ineffective employee communication

Communication is the true essence of life. We send and receive millions of messages daily, both verbally and nonverbally. Whether the president is making an important speech, a teacher taking a class, or a business promoting its product, communication has immense power to change society, culture, and people's lives.

Effective communication creates positive connections between people, whereas ineffective communication creates confusion, conflict, low morale, and frustration. Let's understand this in detail.

Effective employee communication in the workplace

Good communication in the workplace isn't just about preventing potential conflicts (although that's a key advantage). Effective communication is crucial in building solid relationships, team effectiveness, employee engagement, and business profitability. The secret to effective communication in the workplace is not just about communication. It's about understanding.

Here's an outline of what effective communication looks like in a workplace:

1. Effective conflict management

• Conveying information clearly to avoid misinterpretation that can lead to conflicts.
• Having policies in place that outline how conflicts can be reported and managed.
• Equipping employees and leaders to deal with conflicts through regular training.

2. Enhanced employee engagement

• Communicate your values and vision for everyone to know and align with them.
• Setting clear job expectations so everyone is working towards a shared goal.
• Creating an environment that fosters collaboration and healthy workplace relationships.

3. Inclusive workplace culture

• Involving employees in every decision and soliciting their opinions.
• Sharing the right message, at the right time through the right channel.
• Cultivating a culture of open conversation where employees are free to share their thoughts and ideas.

4. Better employee and customer experience

• Providing employees with an experience that is on par with your customer experience.
• Seeking employee feedback and acting on it to make them feel heard and valued.
• Communicating and emphasizing the need for listening to and acting on customer feedback.

Ineffective employee communication in the workplace

While it takes time and effort to establish effective employee communication, ineffective employee communication grows like an unnecessary weed when no attention is given.

Ineffective employee communication stems from a poorly aligned strategy, a failure to execute the strategy, using the wrong communication vehicle, bad timing, and even nuances such as word choice or tone of voice. Its impact increases the chances for misunderstandings, damages relationships, breaks trust and increases anger and hostility.

Here's an outline of what ineffective communication looks like in a workplace:

1. No or poor communication strategy

When an organization doesn’t take the time to create an effective communication strategy or fails to drive it correctly, it can harm the business negatively. 

It’s a domino effect of poor morale, frustrating communication, higher absenteeism, and lower productivity, which leads to higher employee turnover and smaller business profits. To avoid poor communication, you need to use all necessary tools and ways, like SMS alerts, and other types to increase communication inside the company.

2. Bad communication practices

An organization that does not fix lousy communication practices like improper tone and negative language may instead come across as a brand promoting such practices. Not only does it create serious workplace conflicts and aggression but also unhappiness and stress. Employees may just feel defeated overall.

3. Poor collaboration

An organization that does not foster peer and cross-team collaboration suffers from information silos and hampered innovation. When organizations obstruct open communication and cooperation, they stifle efficiency besides innovation. 

Working in silos has a corrosive effect on the workplace culture too. It breeds conflicts, distrust, and resentment. Instant messaging and emails just aren’t enough to enable employees to work productively and cross-functionally.

4. Poor customer relations

An organization that does not invest in good employee communication and relations could suffer from poor customer relations because employees may transfer the same poor experience (they receive at work) to their customers. 

Also, employees who don’t have proper guidance from the top management or are locked out of dialogues about their day-to-day task struggles are less likely to know how to satisfy customers.

10 Effective employee communication strategies for teams

Here are 10 effective employee communication strategies for teams.

1. Regular check-ins

Regular team meetings and check-ins are essential to keep everyone on the same page, share updates, and address concerns. These interactions promote transparency and alignment within the team.

Microsoft is known for its regular check-ins between managers and employees. They use a system called "Connects" which encourages managers to have consistent one-on-one conversations with their team members. This strategy fosters a culture of feedback and ensures that employees feel heard and supported in their roles.

• Tip: Assign a designated facilitator for each meeting to ensure that discussions stay focused and on track. This person can also ensure that everyone has an opportunity to speak, and that the agenda is followed.

2. Clear and concise messaging

Communicating ideas and information clearly and concisely reduces the chances of misunderstandings and confusion. Clear messaging is especially crucial in written communication and presentations.

Amazon is recognized for its clear and concise internal messaging. The company maintains a set of 14 Leadership Principles that serve as a framework for decision-making and communication. These principles are straightforward to understand, helping employees align with the company's culture and values.

• Tip: Before sending an important email or presenting information, take a moment to distill your main points into a succinct outline. This will help you organize your thoughts and convey your message more effectively.

3. Active listening

Active listening involves hearing what someone is saying and understanding their perspective, emotions, and underlying message. This skill promotes empathy and effective collaboration.

Zappos, an online shoe and clothing retailer, is recognized for its customer-centric approach and active listening. The company's customer service representatives are encouraged to actively listen to customers, understand their needs, and provide personalized solutions. This approach has earned Zappos a reputation for exceptional customer service and strong customer loyalty.

• Tip: Practice reflective listening by summarizing the speaker's words after they finish talking. This allows them to clarify any points and confirms your understanding.

4. Use of collaboration tools

Digital tools and platforms enhance team communication by providing a centralized space for sharing documents, tracking progress, and collaborating on tasks.

Atlassian, a software company known for products like Jira and Confluence, heavily relies on its own collaboration tools for workplace communication. These tools allow teams to collaborate on projects, share information, and track progress in real time. 

Atlassian's use of these collaboration tools has dramatically improved workplace communication by streamlining the exchange of ideas, centralizing project information, and enabling remote work. Employees can access and contribute to project-related content easily, which enhances transparency, reduces email clutter, and fosters a more efficient and productive work environment.

• Tip: When using collaboration tools, establish clear guidelines for file naming, folder structures, and task tracking. Consistency in organizing information will make it easier for team members to locate what they need.

5. Feedback and constructive criticism

Providing feedback constructively and respectfully fosters continuous improvement and helps team members develop their skills.

Netflix has a unique approach to feedback and constructive criticism through its "360-degree feedback" culture. Employees at all levels are encouraged to provide open and honest feedback to their colleagues and managers. 

This practice helps individuals understand their strengths and weaknesses while promoting a culture of improvement and accountability. It has effectively improved workplace communication by creating a safe space for honest conversations and building a culture where feedback is seen as a valuable tool for personal and professional growth.

• Tip: Practice the "Feedback Sandwich" approach. Begin with positive feedback, then offer suggestions for improvement, and conclude with more positive feedback. This helps balance criticism with encouragement.

6. Regular updates and status reports

Providing regular updates and status reports keeps everyone informed about ongoing projects, tasks, and milestones. This strategy promotes transparency and helps prevent surprises.

IBM has a tradition of using regular updates and status reports to improve workplace communication. The company holds periodic "Town Hall" meetings where leadership provides updates on the company's performance, strategy, and vision. Additionally, IBM uses a comprehensive intranet platform to distribute information and reports throughout the organization. 

These regular updates and status reports help align employees with the company's objectives, keep them informed about significant developments, and ensure that everyone is on the same page. It also promotes a sense of belonging and a shared purpose among employees.

• Tip: Use a consistent format for status reports, including key accomplishments, current tasks, upcoming goals, and potential challenges. This makes it easier for team members to grasp the project's progress quickly.

7. One-on-one meetings

Individual meetings between team members and their supervisors or colleagues create a space for deeper discussions, addressing personal concerns, and building stronger relationships.

Asana, a project management software company, prioritizes regular one-on-one meetings between managers and employees. These sessions allow open discussions about performance, feedback, challenges, and aspirations. By fostering these interactions, Asana ensures alignment, removes roadblocks, and promotes a transparent and supportive work culture where employees feel valued.

• Tip: Focus on active listening and asking open-ended questions during one-on-one meetings. This encourages team members to share their thoughts and concerns openly, leading to more productive conversations.

8. Visual communication

Visual aids such as charts, graphs, diagrams, and presentations simplify complex information and make it easier to understand, especially when dealing with data-heavy content.

Apple is well-known for its effective use of visual communication in product design, marketing, and presentations. Apple's design philosophy, characterized by simple and intuitive interfaces, clear product images, and iconic marketing campaigns, relies heavily on visual elements. 

This approach has helped the company improve workplace communication by making information more accessible and understandable to both employees and customers. Visual communication simplifies complex ideas and enhances engagement, contributing to a culture of clarity and innovation within the organization.

• Tip: When creating visuals, follow the principle of simplicity. Clear labels, contrasting colors, and minimal text convey information effectively. Avoid overcrowding visuals with too much detail.

9. Crisis communication plan

Having a well-defined plan for communication during emergencies or crises helps teams respond quickly, manage uncertainties, and provide accurate information to stakeholders.

Johnson & Johnson is a prime example of a company that excels in crisis communication. In the 1980s, when the company faced a significant crisis due to the tampering of some of its products, it implemented an exemplary crisis communication plan. They quickly recalled the products, engaged with the public, and communicated transparently. 

This strategy helped the company regain public trust and strengthen workplace communication by demonstrating a commitment to ethical values, transparency, and employee involvement during a crisis.

• Tip: Develop a crisis communication plan that outlines roles and responsibilities, communication channels, message templates, and steps for escalation. Regularly review and update this plan to ensure its relevance.

10. Feedback loop

Establishing a continuous feedback loop encourages ongoing improvement by enabling team members to provide feedback on processes, communication, and collaboration.

Amazon is known for its effective feedback loop strategy, particularly in its fulfillment centers. The company uses a "Voice of the Associate" system, where employees are encouraged to provide feedback on their work environment, safety, and processes. 

This feedback loop has helped Amazon improve workplace communication by ensuring that employees have a channel to express their concerns and suggestions. It fosters a culture of continuous improvement, and employees feel that their input is valued, leading to a safer and more productive work environment.

• Tip: Implement a feedback collection system, such as regular surveys or anonymous suggestion boxes, to gather input from team members. Act on the feedback received to demonstrate its value and encourage participation.

Remember that effective communication strategies should be tailored to your team's needs, culture, and projects. Implementing these strategies with a genuine commitment to fostering open, respectful, and transparent communication will contribute to a more productive and harmonious team environment.

Communication failure examples: Learn from others’ mistakes

Here are two real-life disaster stories that tell us how even the world’s renowned brands misjudged their internal and external communications and ended up in dreadful blunders.

Example 1: Walmart’s ‘Fat Girl Costume’ controversy

What happened: In 2014, Walmart was in the limelight for all the wrong reasons. Halloween was around the corner, and Walmart created a communication horror story by adding a section to their website that said—“Fat Girl Costumes.”

This not-politically correct and insensitive phrase began an avalanche of the unpleasant press: it soon reached multiple online media platforms, and the brand’s reputation took a profound toll. The company saw a rampage of complaints on its social channels and even reached the top#10 Twitter trends. Later, Walmart apologized for advertising their Halloween costumes under the “fat girls costumes” category. (Source: Inc)

They said:

“This never should have been on our site. It’s unacceptable, and we apologize. As soon as we were notified about it this morning, our teams immediately began to remove it from our site and ensure it never happens again.” — today.com

How the situation could have been prevented

Whether intentional or not, Walmart’s marketing team certainly needs a proper internal accountability system. The situation would have never arisen if they had a comprehensive people platform that enabled them to share constant reminders with their teams about the web publishing policies or the dos and don’ts. It could have saved them from all the negative publicity and damage.

Example 2: The Enron scandal

What happened: The fall of this Wall Street darling is well known to the whole world. The company’s collapse affected thousands of employees and shook the stock market.

Enron, one of the biggest energy companies in the U.S., went bankrupt due to off-the-books accounting, fraud, and fake holdings. The leaders at Enron were dishonest with their workforce and failed to address one of the most critical issues—transparent communication between the workforce and the management team. They did not listen to their employees, ignored problems, and hid the truth. (Source: Investopedia)

How the situation could have been prevented

Enron is a clear example of how a situation can go from bad to worse to disaster. Though years have passed, the scandal stays fresh in people's minds, setting an example of what a workplace shouldn’t be like.

Although Enron's communication department raised significant red flags, the leaders paid no heed despite that. Firstly, two-way communication is essential for the management and employees to be effective and transparent. Having the right platforms that offer anonymity to let employees raise concerns or speak up about workplace issues without any fear of retribution prevents horrific problems from happening.

If those real-life examples weren’t enough, let the numbers do the talking:

• Businesses with a solid internal communications strategy are 3.5 times more likely to leave competitors behind and forge ahead.
• A Gallup study found that a dismal 13% of employees agree that their business leaders effectively communicate with them, which means 87% don’t think effective internal communications are taking place in their organization.
• While internal communications are vital, businesses are either putting them on the back burner or not realizing their potential. 60% of businesses haven’t considered building a long-term internal communications strategy.

Enhancing workplace communication with Empuls

Empuls is a comprehensive employee engagement platform that streamlines internal communication and fosters a connected work environment.

Its social intranet acts as a digital hub where employees can collaborate, share updates, and engage in meaningful discussions, strengthening overall workplace communication.

• Facilitates transparent internal communication

Traditional communication methods often result in missed messages and misaligned teams. Empuls centralizes information, ensuring that employees across departments access accurate and timely updates. This reduces confusion, improves decision-making, and creates a more informed workforce.

• Strengthens team collaboration and connectivity

A workplace thrives on collaboration, but geographical and departmental barriers can hinder smooth communication. Empuls provides an interactive platform where employees can engage in cross-functional discussions, share ideas, and stay updated on key projects. This enhances teamwork and promotes knowledge-sharing across the organization.

• Ensures timely dissemination of critical updates

When employees lack access to important company updates, productivity suffers. Empuls eliminates information gaps by ensuring that crucial announcements, policy changes, and product updates reach the right employees at the right time. With features like targeted messaging and notifications, employees remain well-informed without relying on scattered emails or word-of-mouth updates.

• Encourages open dialogue and employee voice

Communication is a two-way street, yet many workplaces struggle with giving employees a voice. Empuls fosters an inclusive environment by enabling employees to share feedback, ask questions, and participate in discussions with leadership. This openness builds trust, increases engagement, and helps organizations address concerns proactively.

• Creates a more engaged and interactive workforce

Engaged employees communicate better, collaborate more effectively, and contribute positively to workplace culture. Empuls integrates gamification, social recognition, and community groups, allowing employees to interact beyond work-related tasks. Whether celebrating team achievements or discussing industry trends, employees can engage in meaningful conversations that strengthen workplace relationships.

Empuls transforms internal communication by bridging gaps, improving transparency, and fostering a culture of collaboration. By leveraging its social intranet, organizations can create a workplace where employees feel heard, valued, and connected.

Conclusion

Remember that the whole point here is to turn your company into a thriving community internally and externally. Accentuating the company culture allows your employees to experience what the company stands for and aligns them with the company's vision.

Start with the processes mentioned above and follow through. Listen as carefully as you speak, as employers often miss hints that may be said in jest.

When your entire company begins to operate as one unit, you have a powerful force the industry must reckon with. To ensure this happens, utilize all the arrows in your quiver (or add more).