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Lost revenue due to poor communication

A study conducted by Grammerly and The Harris Poll in 2022 found that an estimated $1.2 trillion is lost annually in U.S. businesses due to poor communication, which equates to $12,506 per employee every year. 93% of the business leaders surveyed acknowledged that effective communication is the backbone of their business. And with nearly three quarters of the business leaders stating their team struggled with effective communication within the last year, this demonstrates a strong need to improve communication amongst those that are people managers. Communication is THE core activity in the workplace.

 

Further, employees that experience poor communication in the workplace are more likely to feel stressed, exhibit low morale, resulting in turnover. Another item to point out about poor communication from leadership, is the misunderstandings this creates, confusion, disorganization, a reduction in the bottom line, and therefore, creates a lack of trust from the employee population towards senior management. When there is a lack of trust, employees move on.

 

When people managers are poor communicators, this can lead to harm in the cohesiveness of teams, inability to achieve business goals, disrupt workplace dynamics, and falter the processes that make the business run. When looking at the relationship between the people manager and their team, relationships wither, respect and trust disappear, and motivation decreases.

 

Now that you've read the negatives about poor communication, here's the flip side to effective communication. Research from Towers Watson has found that effective communication is a leading indicator of business financial performance and a driver for employee engagement. Businesses with highly effective communicators have a 47% higher total return to shareholders, and, with strong communication practices, are 3.5 times more likely to significantly outperform industry peers.

 

Employees that receive clear communication as to how their efforts positively affect the organization, and, organizational and benefit changes are more inclined to listen, put forth greater effort, and be more motivated. This also helps as teams have become globally located and multicultural. When the employee value proposition is constantly and consistently communicated, the business and employee better understand the expectations of each other.



 

 

 

 

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