The benefits of effective internal communications

Mattison Hofstedt


September 28, 2023

March 20, 2024

Internal meeting in a company.

Table of contents

What is internal communications?

Key benefits of effective internal communications

3 steps to implement effective internal communications

  1. Set clear goals and objectives
  2. Choosing the right communication channels
  3. Encouraging open and honest feedback

Concluding thoughts...

Do you want to build a happier, more efficient, and more productive workplace? If so, it's time to invest in effective internal communications.

Contrary to popular belief, internal communications isn't just about passing messages within the organization; it's also about building strong relationships between employees, enhancing teamwork, and creating a healthy organizational culture.

In this article, we will take a closer look at the importance of effective internal communications, its benefits, and strategies for implementation.

What is internal communications?

At its core, internal communication refers to the exchange of information within an organization. It can take many forms, such as emails, newsletters, team meetings, one-on-one conversations, and company-wide announcements.

Internal communication is crucial to the smooth operation of any organization, as it enables employees to understand their roles and responsibilities, share ideas, and stay aligned with company objectives.

It also helps to create a sense of community within the organization. When employees feel connected to one another and to the company as a whole, they are more likely to be invested in their work and committed to the company's success. This, in turn, can lead to increased productivity and better business outcomes.

Why is internal communications important?

Here are some of the key benefits of effective internal communication and how it can positively impact an organization's growth and success.

Improved employee engagement

Organizations with high employee engagement outperform those with low engagement by 202%. (Source: Engagement Multiplier)

One of the most significant benefits of effective internal communication is improved employee engagement. When employees feel informed and connected to the organization's mission, they are more likely to be motivated and contribute to the company's growth. Regular communication can also help build trust and a sense of community, which is vital for employee retention and job satisfaction.

Enhanced collaboration and teamwork

39% of employees think people in their organization don’t collaborate enough. (Source: Queens University)

Effective internal communications is a crucial factor in promoting teamwork and collaboration. Regular updates on projects, sharing of ideas, and feedback helps break down silos and ensure that everyone is on the same page and can align their efforts towards the organization's goals.

It can also help identify and resolve conflicts before they become major issues, ensuring that everyone is working towards the same objectives.

Greater employee retention

Effective team communication increases employee retention by 4.5 times, compared to businesses that lack effective communication in the workplace. (Source: ZenHR)

If you want to give your companies a good reputation and keep your employees satisfied and feeling valued in their roles, then having a culture that values open communication is key. When employees feel heard, understood, and communicated with, they are more likely to stay in their jobs, reducing recruitment costs and employee turnover.

Increased productivity and efficiency

Employee productivity increases by 20-25% in organisations where employees are connected through strong communications in a business. (Source: CSG)

Effective internal communication can also make a significant impact on an organization's productivity.

When everyone is on the same page and has the relevant information, there is less time wasted on miscommunication or working on tasks that are not aligned with the company's objectives.

Additionally, if communication channels are open, employees are better able to ask for help or offer feedback, reducing the time it takes to solve issues.

Better decision-making and problem-solving

74% of employees feel they are missing out on company information and news. (Source: EveryoneSocial)

Effective internal communication is vital to making better decisions and problem-solving. When employees are well-informed about processes, changes, and company information, they are better equipped to make decisions that align with the company's objectives.

Additionally, if an issue arises, having open communication channels can help employees collaborate and find solutions more quickly.

Stronger organizational culture

33% of employees say a lack of open, honest communication negatively impacts morale. (Source: Accountemps)

Effective internal communication is crucial to building a strong organizational culture. When communication is open and transparent, employees feel empowered and engaged, which fosters a healthy workplace environment. Additionally, communication can help communicate company values and goals, align employee behavior, and create a sense of belonging.

3 steps to implement effective internal communications

Now that you know the key benefits of using internal communications, here are 3 steps you can take to implement it in your organization.

1. Set clear goals and objectives

When planning your internal communication strategy, it's essential to set clear goals and objectives that align with company values. Your goals should be specific, measurable, achievable, relevant, and time-bound. Setting clear goals and objectives can help keep the communication channels focused and ensure the right message is delivered to the right audience at the right time.

Example: If your company's goal is to increase sales by 10% in the next quarter, your internal communications strategy should focus on how employees can contribute to achieving this goal. You can communicate the target sales figures, provide updates on progress, and recognize employees who make significant contributions towards achieving the goal.

2. Choosing the right communication channels

There are many channels that you can use for internal communications. These could be: 

  • Email
  • Newsletters
  • Instant messaging
  • Intranet
  • Video conferencing
  • Social media

The key to selecting the right communication channels is to determine the purpose of the message, the audience, and the context. Personalizing your message based on the audience's preferences and needs can help increase engagement and keep employees connected.

Example: If you want to communicate a new company policy, you may choose to send an email to all employees, post the policy on the company intranet, create a video explaining the policy and share it on Slack and even hold a meeting explaining it. This approach ensures that all employees receive the message and have an opportunity to ask questions and provide feedback.

Here is an example of a policy video that we made to explain how our wellness allowance works: 

For more inspiration on how you can use video for internal communications, check out these articles: 

3. Encouraging open and honest feedback

One of the essential aspects of effective internal communication is to encourage open and honest feedback. Employees should feel comfortable sharing their opinions and ideas without fear of retribution.

Feedback can take many forms, such as regular surveys, one-on-one meetings, and team meetings. When employees feel heard, they're more likely to engage and contribute positively towards the organization.

Example: You can conduct regular employee surveys to gather feedback on company culture, work environment, and job satisfaction. You can also hold one-on-one meetings with employees or have a well-defined procedure of grievance in place. When employees have concerns, questions, or suggestions, they need a clear and accessible process to voice them. This procedure should ensure that employees can communicate their grievances in a safe and confidential manner

Concluding thoughts...

Effective internal communication is a critical component of any organization's success. It has the power to improve employee engagement, enhance teamwork, increase productivity, reduce employee turnover, and create a healthier workplace culture.

By employing the right communication strategies and tools, organizations can achieve these benefits and create a more connected, engaged, and successful workforce.

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