Investing in internal communications and in the improvement of employee experience has several benefits. These include outperforming competitors, increase in productivity, increase in satisfaction and loyalty of employees, improvement in employee retention, higher returns or sales growth, and re-energized company innovation. Some global companies that invested in internal communications and employee engagement are Microsoft Corporation, Vodafone Group, and Creation Finance.
The Benefit of Investing in Internal Communications and Employee Experience
1. Companies with highly engaged employees outperform their competitors
- A research report from Gallup, an advisory and analytics company, reveals that companies that have highly engaged employees outperform their competitors by 147%. This is in terms of earnings per share. Internal communication has been essential in the improvement of employee experience and engagement.
- According to James Harter of Gallup, "communication is the basis of any healthy relationship, including the one between an employee and his or her manager. [Consistent communication]—whether it occurs in person, over the phone, or electronically—is connected to higher engagement."
- A research report by Jacob Morgan in 2017 also reveals that companies that invest in employee experience are four times as profitable.
2. Improving employee engagement increases productivity
- The Harvard Business Review reveals that improving employee engagement increases productivity by as much as 22%. Employees who feel more valued are more likely to be more engaged and will in turn contribute more to the team, to the project, and to the company as a whole.
- Swift Digital also states that the productivity of employees increases by 20-25% in companies where employees are connected.
- HR Technologist also states that effective internal communication ensures that employees are moving together towards a common goal. It also enables employees to make the right decisions that are aligned with the goals of the company. This leads to greater productivity and efficiency which improves customer service. All of these are essential for long-term business success.
- The table below is from the research and analysis of Ward, Krekel, and De Neve, "conducted with Gallup consultants of 339 independent studies in the Gallup database, including the well-being and productivity of 1.8 million employees in 230 organizations across 49 industries in 73 countries."
3. Investment in internal communications increases the satisfaction and loyalty of employees
- A survey from Harris Poll reveals that over 70% of employees were more engaged when their company provided clear internal communications regarding information of value such as company objectives, goals, and individual or organizational execution.
- According to Forbes, "When employees are kept in the loop of what’s happening internally, their loyalty and satisfaction increase ultimately improving the annual revenue and reputation of the company."
4. Internal communication improves retention of employees
- According to Elaine Branding, FleishmanHillard's Senior Vice President of Internal Communications, "When a young employee finds that an organization doesn’t communicate the way they’re accustomed to, they can more easily become disengaged and end up leaving."
- Branding adds, "Generally, millennials don’t plan on staying at a place for a long time if they’re not happy. So, don’t stay up-to-date with current communications practices at your own peril. The world will move on, and your employees may, too."
- The Harvard Business Review also notes that increasing employee engagement will lower the likelihood of employees leaving the company. Research shows that "when companies with high turnover problems took steps to increase engagement, turnover dropped by 25%."
5. Investment in internal communications leads to higher returns or sales growth
- Trade Press Services reveals that 85% of employees are most motivated when company management provides regular updates regarding company news. Clear internal communication of company goals and challenges together with a clear definition of employee roles leads to increased employee motivation. Add to that, employees who are engaged in the company will also be more engaged with the customer.
- Employee engagement is also seen to be "one of the top drivers of sales growth". Trade Press Services notes that companies with "highly effective internal communications had 47% higher total returns to stakeholders."
- The Holmes Report reveals that "companies with strong internal communication strategies were able to give their shareholders 47% higher returns, while research from Smarp found that companies with high employee engagement are 22% more profitable."
6. Investment in internal communications re-energizes company innovation
- When Thomson Reuters improved its internal communication, the company was able to address its problem regarding how its employees show a lack of importance on innovation. After implementing its internal communication methods, the company saw an increase in the number of requested innovation projects from its 50,000-plus workforce. Thomas Reuters successfully re-energized its company innovation by improving its internal communication.
1. Microsoft Corporation
- Microsoft is one of the global B2B companies that has invested in internal communications and has been reinventing employee experience. Microsoft is a multinational technology company that sells computer software, hardware, and related services.
- According to Microsoft, "We’re moving our entire organization toward a digitally assisted workday in an interconnected and integrated digital workplace, to provide the most productive employee experience possible as we continue our digital transformation."
- Microsoft invested in internal communications and improvement of employee experience through its ongoing digital transformation that aims to increase employee productivity. Microsoft states, "The nature of our employees’ work continues to evolve and change as we leverage AI, digital assistants, mixed reality, consumer apps, and multidevice scenarios." The company utilized its own products including Microsoft 365 in order to improve communications and employee engagement.
- This resulted in more interconnected and personalized employee experiences. It has also enabled Microsoft employees to collaborate, innovate, and create seamlessly among the teams to which they belong and work with.
2. Vodafone Group
- Vodafone is one of the world's leading telecommunications company that provides communication services through mobile, broadband, fixed, or TV around the world. Vodafone New Zealand has around 1,400 employees.
- The company encountered some internal communications problems such as difficulty in centrally managing the diverse messages being put out by various parts of the business, all staff emails that are being ignored, a low response rate to staff surveys, and inefficient team meetings.
- In order to address these issues, Vodafone invested in the improvement of its internal communications by partnering with SnapComms. SnapComms provided Vodafone with "customized existing offerings and developed a new tool to meet Vodafone’s internal communications objectives."
- This resulted in 90% of Vodafone employees answering staff surveys, 50% of employees reading the company newsletter every time it comes out, and centrally managed messages. Vodafone was able to reinforce knowledge and build awareness of key services, products, and projects through the staff quiz tool provided by SnapComms. Employee engagement also improved as a high participation rate transpired.
3. Creation Finance
- Creation Finance is one of the world's largest banking groups and one of the leading providers of "innovative credit solutions and customer programs, providing credit facilities for nationally recognized UK business partners in the retail, motor and home improvement sectors."
- Creation Finance invested in the improvement of its internal communications by also partnering with SnapComms. Since Creation Finance relied heavily on traditional corporate mails, messages were either not read or taking too long to be read by employees. In order to address this concern, SnapComms provided tools such as desktop tickers, desktop alerts, and screensavers.
- This resulted in the improvement and immediacy of message delivery, ability to schedule messages, and provided greater confidence that employees are engaged with organizational communications. According to Jennifer Hayward, Creation Finance's Senior Internal Communications Manager, "Scheduling is probably the most useful thing for me. I've already set a message to go live when I need it to so I can be off doing whatever else I need to do."