Communication by the Numbers

A numerical perspective on the benefits of effective communication

Employees feel disconnected in companies with poor communication. Why effective communication is needed in a workplace without it:

humphreys-signs40%: Employees who feel disconnected at work.

67%: Workers who do not identify with or are motivated to help the company attain its business goals and objectives.

25%: Employees who show up just to collect a paycheck. (1)

49%: Employees who feel their company is open and honest in its communication.

55%: Employees who feel that senior leadership only talks at them, but doesn’t listen to them.

51%: Employees without a channel to communicate up the corporate organizational chart. (2)

Benefits to companies that communicate better. Company that communicate effectively enjoy these statistical benefits over firms with poor communication:

30: Percent increase in market valuation. (3)

57: Percent higher in total return to share-holders than companies that communicated least effectively.

4.5: Times more likely to benefit from employees meaningfully connected with the company.

20: Percent who are more likely to experience lower turnover rates. (4)

1: Number of Communication Plans that a company must implement to achieve effective communication.

Succeeding with better communication. From an employee’s perspective, effective communication encompasses these elements:

  • Open and honest exchanges of information.
  • Clear, easy-to-understand materials.
  • Timely distributions.
  • Trusted sources.
  • Two-way feedback systems.
  • Clear demonstrations of senior leadership’s interest in employees.
  • Continual improvements in communication.
  • Consistent messaging across sources. (5)

Source Notes.

  1. “U.S. Job Satisfaction Keeps Falling, The Conference Board Reports Today”, The Conference Board. 28 February 2005.
  2. “Study Offers Insights on Effective Communication from the Perspective of Employees”, Towers Perrin. January 2005.
  3. “Connecting Organizational Communication to Financial Performance—2003/2004 Communication ROI Study”, Watson Wyatt & Company. 3 November 2003.
  4. “Effective Communication: A Leading Indicator of Financial Performance—2005/2006 Communication ROI Study”, Watson Wyatt & Company. December 2005.
  5. “Study Offers Insights on Effective Communication”, Towers Perrin.

—Rich Maggiani

[Note: This post is one of our position papers originally published in 2012.]

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