As companies focus on managing external relationships and dynamics, they often overlook their most crucial audience: their employees. A new study from the USC Annenberg School for Communication and Journalism, in partnership with Staffbase, uncovers a troubling reality: 61% of employees considering leaving their jobs cite poor internal communication as a factor, with 26% identifying it as a major cause. Alarmingly, 49% of managers admit they don’t know their company’s goals, highlighting widespread communication breakdowns.
Key Findings from the Employee Communication Impact 2024 Study
The Employee Communication Impact 2024 study surveyed over 1,000 employees and conducted interviews with 20 Chief Communications Officers from leading U.S. companies. The study reveals a significant disconnect: while organizations invest heavily in managing their reputations with customers, investors, and regulators, they often fail to engage their workforce with the same urgency and strategy, contributing to talent retention challenges.
Insights from Industry Experts
“Talent shortages, shifting employee expectations, and the rise of AI-driven communication tools are increasing the need for organizations to get serious about internal communication,” stated Frank Wolf, Co-Founder and Chief Strategy Officer of Staffbase. “Our study highlights a critical need for organizations to rethink their approach to internal communication or risk losing valuable employees.”
- Effective Communications Retains Talent:
- 69% of employees satisfied with internal communication plan to stay in their jobs over the next year.
- Only 29% report being “very satisfied” with the quality and frequency of company communications.
- Employee Happiness is Tied to Communication:
- Workers who are happy with internal communication are 46% more likely to be satisfied at work, demonstrating the connection between engagement, morale, and retention.
- Lack of Clarity on Company Goals:
- Despite Gen Z’s desire to work for companies with clear purposes, less than 46% understand their organization’s bigger picture.
- 64% of employees who are ‘very happy’ in their roles are also ‘very familiar’ with their company’s goals and vision.
- Supervisors are Key but Often Ineffective:
- Supervisors serve as the primary channel for internal communication, yet only 49% of employees receiving messages from them are familiar with company goals.
- Just 56% of employees fully trust their line managers.
- Need for Personalized Communication:
- The rise of remote work and the adoption of AI highlight the urgency of embracing personalized communication strategies that resonate with employees’ individual needs and preferences.
“This study underlines the growing importance of internal communications as a business strategy,” remarked Fred Cook, Director of the USC Annenberg Center for Public Relations. “Maintaining a constructive dialogue with employees can improve morale, increase productivity, build culture, and retain valuable employees.”
