Effective communication leads to more engaged employees, and more engaged employees lead to better results. So why not follow the example of companies that communicate the best with their employees? That’s what a recent Watson Wyatt study recommends.
According to the Watson Wyatt “2009/2010 Communication ROI Study Report,” firms which implement highly effective internal communications programs find it easier to build employee loyalty and keep their key employees. Study authors, who interviewed 328 companies all over the world in April and May 2009, found that firms with effective employee communications delivered a total return to shareholders 47% higher than companies with poor communication programs.
According to the same report, 61% of high-performing companies say that their managers deal openly and effectively with resistance to change, vs. 18% for companies with low communication effectiveness. Along the same lines, managers in 64% of the high-performing companies address the needsand concerns of team members effectively. Only 22% of less effective communicators can say the same.
These are all good reasons to heed the best practices of effective communicators. The Watson Wyatt Communication ROI study identifies three key points:
1. Always inform employees on how company changes will affect them.
Among the most effective communicators, more than 6 out of 10 (62%) clearly and regularly communicate the company’s expectations, as well as what employees can expect from it. When there are changes, regardless of their nature, these expectations are redefined and re-explained, so that everyone understands what he or she has to do differently and can expect in return.
2. Trust and train your leaders to talk about change.
When it comes to discussing change, face-to-face is preferred to print or electronic communications. According to the study, this is another good practice that seems to bear fruit, since 73% of high communication effectiveness companies say that their managers effectively support the company’s strategic vision via their actions, vs. 29% for low communication effectiveness companies.
3. Put metrics in place to follow up communication activities.
As with any other field of activity, internal communication requires developing a strategy. High communication effectiveness companies more often have such a strategy than their less effective counterparts. 53% of the former are using more communication outcome metrics than last year, vs. 34% for the latter. Nevertheless, 43% of participants overall say they use no formal assessment tool to measure communication outcomes.