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Home » Articles » 10 Key reasons why internal communication is vital

10 Key reasons why internal communication is vital

Businesses that continuously flourish do not just focus on how they cater to their clients and customers. Of course, for a company to offer its best services, it should start with its employees.

Like how firms invest more in the success of their public relations and marketing, they should also make the same efforts internally.

Note that both your external and internal communication should always go hand in hand.

For your business to progressively move forward, you have to recognize the importance of clear internal communication. On top of that, develop an effective internal communication strategy.

If your employees are not able to communicate effectively and properly within your organization, it will have a huge impact on team collaboration.

As a result, it will also affect their productivity, employee engagement, and experience.

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Importance of internal communication

Your internal communication (IC) is one essential function within your organization. It is responsible for effective communication within your internal teams.

IC refers to the exchange of information among different levels of employees within your company. In other words, it is how your staff interact with one another to achieve common goals and objectives.

Failing to distinguish the importance of effective internal communications may end up in the company suffering. This is especially crucial for businesses that the recent pandemic has driven to adopt remote work.

Remember that your internal communication does not always have to be face-to-face and verbal.

Information sharing and employee engagement can happen using the following communication channels:

  • Verbal – Verbal communication is done by word of mouth or orally.
  • Paper – It refers to physical documents. These are usually in the form of important paperwork like agreements and contracts.
  • Electronic – This is made possible by utilizing communication tools and the internet.

A lot of internal communication at present happens electronically. One beauty of it is that employees can communicate freely, in real-time, from any location, and even 24/7.

A quick overview of the impaortance of internal communication

5 different types of internal communication

To understand the importance of internal communication, it is best to be aware of the five vital sources of communication.

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These are the following:

1. Peer-to-peer communication – This type includes informal communication between co-workers.

2. Team communication – It involves employees who work together in a collaborative effort to accomplish a common end goal.

3. Management communication – The management is responsible for the proper distribution of important information, changes, or updates about the organization. This can also be for both internal and external communication.

4. Face-to-face meeting – This typically happens within the workplace. An example is when a staff member is briefed on a specific task or project.

5. Other resources – Other resources used in internal communication include messaging apps, emails, video calls, text messages, and telephones.

What is an internal communication plan?

Once you fully understand the importance of internal communication in your working environment, developing a strong internal communication plan will be easier.

Your internal communication plan is your roadmap to boost your:

  • Staff collaboration
  • Employee communications
  • Productivity
  • Information dissemination
  • Engagement

It should also encompass strategies that are focused on certain actions and initiatives that will help your staff achieve common goals.

More so, strategies should also include contingency plans designed for unforeseeable circumstances like the global pandemic.

What is an internal communication plan

Importance of internal communication: 10 Reasons why 

There is no doubt that the global pandemic has disrupted the way we work.

Business leaders were forced to seek better ways to communicate and collaborate with their teams from different remote locations.

According to recent surveys, 74% of employees feel like they are missing out on the current news regarding their companies. Meanwhile, 72% of employees lack the proper understanding of their company’s strategies.

These are just a few of the impacts of poor communication within the organization.

To explain it further, below we outline ten key points on the importance of internal communication:

1. Keeps all your staff well-informed 

One of the main importance of a good internal communication strategy is that it keeps your employees informed.

It is important to inform everyone of events about to happen in the company, policy changes, headcounts, company news, and other updates within the organization.

Consider using virtual phone systems to keep the internal communication going.

Good internal communication allows you to share important information with the right people effectively.

It also helps you reach all employees, especially in a way that encourages them to become invested in and involved in specific plans and goals.

2. Helps boost your employee engagement and productivity

Employee engagement can be in different ways. It can be as simple as asking questions during a meeting or commenting on recent announcements posted on company updates.

It can also be a simple act of sharing what employees are currently working on with the rest of the company.

Internal communication helps encourage your employees to share their thoughts and ideas as they know their voice matters.

Further, it will motivate them to go above and beyond for the sake of the success of the company.

3. Allows employees to have a holistic perspective of the organization 

Your internal communication should not be all about the upper management disseminating important information for the consumption of employees.

A good IC should be two-way. It should not always be about directing your internal team’s attention but rather about making them feel like their input also matters.

One way of giving your staff a more holistic view of your business success is letting every department give updates on what they are currently working on.

Properly managing your internal communication also means allowing your employees’ voices to be heard.

4. Helps build and strengthen your company’s culture

Another manifestation of the importance of internal communication is that it helps build up a healthy working environment.

Letting your staff feel like they are an active entity within your organization increases the chances of employee retention.

Remember that your internal communication will define whether your staff chooses to stay with your company for years or leave as soon as they find a better opportunity elsewhere.

5. Reduces the chances of conflicts 

Poor communication is among the main reasons for conflicts that usually arise between co-workers. Employees may have different beliefs, understanding, and insights on certain issues or ideas.

To help you mitigate conflicts, develop an internal communication plan that will encourage your members to communicate with each other effectively.

Each employee will always have their views and perspectives. Let your internal communication be a way of learning about each staff member’s thought process.

6. Promotes transparency 

Keeping everyone in your company well-informed helps ensure transparency among your employees. It also lets you and your upper management steer clear of any rumors within your organization.

No employee would want to be left in the dark and continue to work without having a clear understanding of what the bigger picture is.

Your internal communication lets you avoid secrecy in terms of information dissemination within your company.

If there are no rumors, your staff will likely discuss other important matters that will support the company’s growth and development.

7. Enables the organization to deal with the crisis effectively 

There will always be times when a crisis emerges, and situations go out of hand. Maintaining transparency within the organization makes it easier for you to talk about these difficult times with your entire staff.

In times of crisis, employees will also have questions and look for answers. Good internal communication will greatly help your organization from falling apart.

Instead of panicking, people can work together in teams to overcome whatever crisis they are faced with.

Importance of internal communication 10 Reasons why

8. Supports employee management 

Another important aspect of internal communication is that it helps you manage your employees more efficiently.

Especially in a remote work setup, apart from effective communication, many businesses also struggle with employee management.

As we’ve mentioned, making use of different employee communication tools allows you to address specific concerns and issues within your staff.

More importantly, it lets everyone stay connected, engaged, and on track with current updates and happenings within the organization.

9. Drives organizational growth

When everyone in the company works hand in hand to achieve common goals, it can benefit organizational growth and development.

Your internal communication should help your employees keep a good relationship with one another. It is what keeps everyone connected.

lt allows everyone to coordinate the same efforts that will help enhance the company’s overall productivity.

10. Provides an avenue for employee feedback and discussion

Just like how employee assessments and evaluations are made, it is also important for the management to hear out what the workers have to say.

Once you recognize the importance of internal communication, you will also appreciate the significance of employee feedback.

It lets you take corrective actions, especially on areas within your organization that need improvement.

How to build an effective internal communications strategy?

Building an effective internal communication strategy is crucial for fostering collaboration, aligning teams, and enhancing productivity within an organization.

Here’s a step-by-step guide on how to create one that works:

Define objectives

Start by clearly outlining the objectives of your internal communication strategy. Determine what you aim to achieve, whether it’s:

  • Improving employee engagement
  • Ensuring transparency
  • Sharing information efficiently
  • Fostering a positive company culture

Know your audience

Understand your employees’ demographics, preferences, and communication habits.

Consider factors such as age, role within the organization, preferred communication channels, and technological proficiency.

Choose communication channels

Identify the most effective communication channels for reaching your employees. This may include:

  • Email
  • Intranet portals
  • Instant messaging platforms
  • Team meetings
  • Newsletters
  • Social media
  • Digital signage

Utilize a mix of different communication channels to cater to different communication needs and preferences.

Develop content

Create relevant and engaging content tailored to your audience’s interests and informational needs.

You can produce various types of content, such as:

  • Company updates
  • Departmental news
  • Project progress reports
  • Success stories
  • Employee spotlights
  • Training materials
  • Announcements

Establish a content calendar

Develop a content calendar to plan and organize your communication efforts. Schedule regular updates and announcements to ensure a consistent flow of information while avoiding communication overload.

Encourage feedback and two-way communication

Foster an open and transparent communication culture by encouraging feedback and facilitating two-way communication channels.

Provide avenues for employees to ask questions, share ideas, and voice concerns. Actively listen to feedback and respond promptly to demonstrate that their input is valued.

Promote leadership communication

Ensure that leaders and managers actively participate in internal communication efforts.

Leaders should lead by example by communicating openly, transparently, and consistently. Encourage leaders to share their vision, provide updates on company strategy and business performance, and recognize employee contributions.

Provide training and resources

Equip employees with the necessary tools and training to effectively communicate within the organization. Offer guidance on best practices for writing, speaking, and using communication tools.

Provide resources such as templates, style guides, and communication protocols to maintain consistency and clarity.

Measure and evaluate performance

Establish key performance indicators (KPIs) to measure the effectiveness of your internal communication strategy. Track metrics such as:

  • Employee engagement levels
  • Communication channel usage
  • Employee feedback
  • Frequency
  • Content reach

Use insights gained from data analysis to identify areas for improvement and refine your communication approach accordingly.

Iterate and adapt

Internal communication is an ongoing process that requires continuous refinement and adaptation. Stay attuned to changes within the organization, technological advancements, and evolving employee needs.

Regularly review and update your communication and communications strategy to ensure its relevance and effectiveness over time.

Applying the importance of internal communication

Whether you are a business owner, an employee, or a part of upper management, it is best that you truly understand the importance of internal communication.

It is also vital for company members, employees, and executives alike, to put the same efforts into ensuring the effectiveness of their internal communication.

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