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7 Reasons Why Internal Communication is Vital for Success

Change is always happening in workforce demographics. The recent consecutive generations are more sensitive to how their employers are talking and listening to them. They have little time for office politics.


Instead, they request for feedback, transparency, and more collaboration. Also, their working is different, and they need tools which can enable them to achieve success in this new environment. Where, unlike before, the role played by internal communication is excellent in the alignment of people towards common objectives.

Without any delay, Let’s dive in!

Here Are Seven Reasons Why Internal Communication Is A Critical Business Function:

1. Improves Transparency And Minimize Rumors

Like many other things, informal communication comes its benefits and shortcomings. Word of mouth may sometimes assist employees in interpreting managerial information. In most cases, it reaches those who may have missed the original message. Also, in comparison to formal communication, informal communication is more flexible.

Further, it enhances the relationship of employees, as well as spreading tips and knowledge, which might make work more productive.

On the contrary, the meaning of any information gets distorted by informal communication. First, it is not easier to control. Second, it reinforces misunderstandings and rumors.

Even so, the benefits of informal communication increases due to excellent internal communication. It can instantly slow down rumor mills through frequent communication. And, it will assist employees in interpreting instructions and information.

Also, excellent informal communication helps employees in maintaining high levels of transparency when interacting with various managerial levels. Employees say it the top factor that determines their satisfaction and happiness in any workplace.

2. Makes The Work Environment Better

Attracting new talents and minimizing high turnover rates are the two benefits that a company gets by having a better work environment.

The American economy incurs $3 billion per year from turnover rates that are always increasing. Job-hop is a common thing to millennials, with approximately 40% saying changing their position in the next two years is their will. So, making them stay is the work of the company.

Excellent internal communication offers constant feedback and reason, thus increasing employee engagement. In turn, this decreases the turnover rates, which saves the company money.

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Irrespective of wanting to retain or attract new talents, employees want to know their employers. Thus, an internal communications system that is functioning well creates an open environment, making your company unique in the present competitive market.

After all, the best advertisement for your brand is happy customers and employees.

3. Rules When There Is A Crisis.

To master either an internal or external crisis, careful and on time, communication is necessary. How external stakeholders and your employees see an incident is an excellent factor in determining if the incident will grow into a major one or not.

Nonetheless, the findings of internal crisis communication are that in a crisis, managers usually communicate significantly with their employees. Apart from supporting short and long term crisis management, internal communication helps you in steering people’s view of an incident.

Regardless of the sector, reputation, or size of your company, internal communication enables you to handle crisis cases well, if organizational channels, plans, and structure are in place.

4. Fulfilling The Brand Promises And Ensuring Customer Satisfaction

No matter what, your customers are always expecting your brand to fulfill its obligations. This applies to both business customers and consumers. So, to ensure this works in an organization that is largely distributed, companies maintain internal communications with their employees.

A customer’s experience with your brand enhances greatly because of skilled and informed staff, clear goals, and happy faces. As a result, this increases your revenues.

The most pressing task for marketers is customer experience. According to the findings of a Gartner survey, 89% of companies will have a competition based on customer encounters. Also,50% of consumer product investments are now channeled to customer experience creations.


Besides, big brands develops from inside out. You should start with your employees. And, their confidence and satisfaction depends upon to your customers.

5. Enables And Promote Middle Management

Many companies pass information from top to down via their managerial levels. In most cases, the outcomes of this are delays, few feedback, and total reliance on an individuals’ communication efforts in the entire chain.

Many messages go out, but fail to reach the people who do the work. However, this chain can be efficient with internal communication.

Besides that, enabling middle management with the necessary resources and information will make them be great communicators and leaders to their staff. Also, internal communication provides an excellent chance for companies to know their workforce well, thus training great managers. This is good for millennials because they mostly feel unprepared for their new tasks.

6. Maintain Control Of The Message And The Origin

Any important news of a company should not be heard from an external source by the employees. However, many companies feel intimated by easier access to news and information on smartphones and other mobile channels. To deal with this situation, you should make internal points readily available at all times, and not only during a crisis.

But, to ensure the information is from the right source, on-time, and reaches all the employees, here are two key ingredients:

1. A clearly defined but adaptable and quick editing process that has a short approval in the hierarchy.

2. Organizations should implement swift, interactive, and dependable mediums to reach the employees. By this, digital means are the best. This allows the company to remain in charge of messages sent.

7. Knowing The Goal/Objective Of The Business

All employees are interested in knowing the goals of a business, the plans of achieving them, and have the confidence of their valued contributions towards the plans. Most millennials want to have a feeling of being listened to, valued, and being part of the team.

The purpose is not only showing the employees their goals. However, it comprises of visualizing what every person can do to contribute. Besides this, achieving the set goals together enhances the feeling of progress and teamwork.

An internal communications system that is functioning well may motivate employees to start working towards a common goal.

Final Thought

Effective internal communication is a reliable tool which leads to 40% customer satisfaction improvement. Also, it leads to a 30% increase in revenues and a 36% overall performance increase of a company. Talking your employees is vital in inspiring and aligning your entire business.

You can try a unique and enhanced cloud communication platform for your effective business communications.