Unlock the power of internal communication and create alignment within your organization, empower employees, and drive sustainable business growth.
Effective internal communication is the backbone of every successful organization. Learn the ins and outs of internal communications with our research-backed white paper.
Access NowEffective internal communication is not simply a matter of holding corporate meetings or distributing company newsletters. It is a vital aspect of organizational health that impacts employee engagement, productivity, morale, and many other aspects of an organization’s functioning. There is also strong evidence that leaders and employees often have vastly different views, which can impact every level of business operations.
According to Grammarly’s The 2024 State of Business Communication Report published in November 2024, the workforce has gone into communication overload, and many workers are overwhelmed. Knowledge workers, many of whom work more than the conventional 40 hours each week, spend an astonishing 88% of their workweek communicating across multiple channels. These are people who rely on expertise, critical thinking, and communication to be effective — and it’s a challenge.
The crux is that poor communication negatively impacts businesses and leads to 40% decreased productivity, 37% extended timelines, and 32% increased costs. Effective communication, on the other hand, leads to 64% increased productivity, 51% boosted customer satisfaction, and 49% raised employee confidence. The report shows that almost all professionals acknowledge the benefits of improved communication, with 58% saying it’s increased job satisfaction and 58% saying it’s improved team relationships.
This, in itself, shows why internal communication is so important. However, there’s a lot more to it, which you will discover in this post.
Jim Kouzes and Barry Posner, authors of the bestselling classic, The Leadership Challenge, are explicit about the role of leadership and what it takes to be successful. Good leaders get things done by aspiring and inspiring – and communication is their most powerful leadership tool.
If you’ve ever questioned why internal communication is important, consider how its absence can cripple the ability to maintain a unified, consistent, and motivated workforce. In today’s fast-paced business environment, an effective internal communication strategy isn’t a luxury, it’s a necessity. It’s what forges a common understanding, empathy, and a sense of belonging among employees.
Furthermore, the larger the organization, the more dramatic the need becomes. This is because larger organizations typically have more complex and diverse needs, which leads to an increased demand for solutions or resources to address these needs.
Good, effective internal communication within organizations drives team spirit, fosters innovation, and fortifies brand identity. Understanding and embracing an effective internal communications strategy can turn a scattered workforce into brand promoters, championing your brand vision both in and out of the workplace.
Internal communications are increasingly disconnected, with a noticeable gap between how leaders and employees perceive their effectiveness. While leaders may feel their messages are clear, relevant, and engaging, many employees disagree, highlighting issues with clarity, relevance, and engagement.
Common challenges include a lack of context, incomplete data, and insights that aren’t easily accessible. To improve communication, leaders can focus on offering more thoughtful and relevant content, sharing information more frequently, fostering opportunities for feedback, and ensuring consistency in messaging and tone.
Turn your internal communications strategy around today
Some people may argue that having an effective internal communications strategy is simply about sending company news through an internal newsletter or an internal email. However, it’s a lot more than that. From enhancing the employee experience to improving productivity, internal communications have the ability to create a bridge of understanding and collaboration across any organization.
For instance, using platforms like internal communications software, social media, and custom email lists, employees can provide insightful employee feedback that informs vital changes in the company’s practices.
Here are 11 top reasons why internal communication is essential and what it has the ability to achieve.
An effective internal communication plan is essential for enhancing employee engagement. When communication is clear, employees understand not only their tasks but also how their contributions align with broader organizational goals. Keeping employees informed empowers them to do their jobs effectively and fosters a sense of connection to the company’s mission.
By encouraging two-way communication and feedback through internal channels, organizations show employees that their voices matter. This recognition boosts morale, motivation, and productivity. It also strengthens a sense of belonging and purpose, which are key factors in creating a positive work environment. Over time, strong internal communication supports employee retention by making individuals feel valued, heard, and part of something bigger.
Time wasted in poor communication is time that could have been spent on productive endeavors.
According to Grammarly’s 2024 State of Business Communication report, 87% of business leaders think that their organization’s communication is “highly effective.” On the other hand, only 63% of knowledge workers agree with this sentiment. These are skilled employees who work at the intersection of technology and information, and who are paid to “think for a living.” On a more specific level, 64% of knowledge workers consider senior leadership effective. More (77%) rate their direct manager’s communication a bit higher.
To bridge this gap and boost productivity, a streamlined internal communication strategy is essential. Tools like email builders, list management systems, and analytics support clarity, reduce misunderstandings and ensure timely, accurate messaging. When employees are well-informed and aligned on their roles and expectations, performance naturally improves.
Clear, consistent communication also streamlines workflows, reduces wasted effort, and prepares employees to navigate change confidently. Ultimately, effective internal communication gets everyone from leadership to knowledge workers on the same page and working efficiently toward shared goals.
Internal communication is critical for aligning individual efforts with broader organizational goals. Platforms such as internal communication tools and employee emails can be used to consistently reinforce your brand promise, company vision, and values. This will foster a sense of shared purpose across the organization. Furthermore, this level of clarity strengthens organizational alignment ensuring that every team member understands how their role contributes to the company’s success.
These communication channels also promote collaboration and teamwork by enabling smoother information flow between departments, reducing misunderstandings, and supporting faster, better-informed decision-making. When communication is clear and consistent, employees are more confident in their contributions and better equipped to act in line with company priorities.
Remember that leadership and marketing teams often have different perspectives from those on the ground. By leveraging internal communication tools to provide transparent, two-way dialogue, you help bridge that gap—giving employees a voice and driving lasting organizational alignment.
Neglecting internal communication leads to ambiguous job expectations and increased workplace anxiety. Not only will employees tend to have low morale, it will also result in missed goals and lost sales, impacting the bottom line of the organization.
On the other hand, prioritizing regular and clear communication has the potential to uplift employees by making their roles, expectations, and the company’s values clear.
Providing channels for informal communication such as employee communication software allows the fostering of relationships between peers and management, thereby improving morale. Additionally, listening and responding to employee feedback will generally boost satisfaction and promote a sense of inclusivity.
Internal communication doesn’t merely exist to serve as a conduit for directives. It can also form the bedrock for innovation. A company that fosters free expression and welcomes ideas from its employees is one that encourages innovation.
Innovation thrives on open communication, says Antony Robinson, chief marketing officer at Novalnet AG, adding that the seamless interplay between communication, innovation, and well-being can fuel growth and drive success in the ever-evolving business landscape. In a Forbes article titled Fueling Growth: Communication, Innovation And Well-Being, he states, “Innovation lies at the heart of business evolution, propelling companies toward new horizons of success.” Ultimately, “Through thought leadership, companies can inspire innovation, foster collaboration and ultimately, shape the future direction of their industry.”
“By fostering a culture of experimentation and empowering employees to think outside the box, companies can unlock untapped potential, drive continuous improvement and stay ahead of the curve in a competitive landscape.”
Antony Robinson
Think about it. Effective internal communication allows each employee, irrespective of their position, to share their ideas and contribute to the company’s progress. This could be achieved through internal communications software or even more traditional, but still effective, suggestion boxes. This kind of employee engagement is a good way to drive innovation.
Conflicts and misunderstandings are inevitable in any organization, but poor communication will exacerbate these problems. At the same time, a robust internal communication plan can help mitigate them.
As Grammarly’s The 2024 State of Business Communication Report points out, the costs of miscommunication extend beyond just the human toll on workers. In fact, poor communication directly impacts the quality of business, leading to 32% increased costs.
“Miscommunication remains a widespread problem, impacting everything from costs to morale. Over half of professionals (55%) spend excessive time crafting messages or deciphering others’ communications, while 54% find managing numerous work communications challenging, and for 53%, this is all compounded by anxiety over misinterpreting written messages.”
Grammarly
Timely, truthful, and clear internal communication leads to a shared understanding and alleviates the conditions for gossip and misinformation. Whether this is carried out through periodic employee newsletters, team meetings, or a dedicated internal communications tool, a good communication strategy can minimize friction and promote harmony within the team.
Promoting diversity, equity, and inclusion (DEI) at work entails creating a culture that welcomes and respects everyone’s differences. Good internal communication helps show the company’s dedication to diversity. It encourages open conversations and the sharing of diverse ideas. This makes everyone feel valued and empowered to contribute. It’s about making the workplace more innovative, collaborative, and inclusive for everyone.
Promoting a sense of belonging is also important, says Neelie Verlinden of the Academy to Innovate HR (AIHR). In Diversity, Equity, Inclusion and Belonging At Work: A 2025 Guide, she states that all employees should feel accepted, valued, and heard at work. “Belonging is about fostering psychological safety in team situations, where every team member is comfortable expressing themselves without fear of judgment or retribution.”
Kathryn Medina, a chief executive who oversees both HR and DEI functions, highlights the role of HR professionals in promoting DEI. In The Business Case For DEI-HR Partnerships in Forbes, she states that if HR and DEI teams aren’t working together, you may not be getting the most out of your efforts.
“Advancing an inclusive culture is an ongoing journey. When HR and DEI collaborate effectively, they accelerate that journey by leveraging their collective expertise. Ensuring these two teams can work seamlessly together will help create an environment where every employee feels seen, heard and valued.”
Kathryn Medina
It is also a huge challenge. A 2024 Korn Ferry post, DEI: ‘A Year of Reckoning’ states that according to many experts, much of the progress gained with DEI halted in 2023. “DEI leaders need a new plan to reignite the movement.” According to Andres Tapia, Korn Ferry’s global strategist for diversity, equity, and inclusion, DEI leaders now describe progress as anything from “challenging” to “bad.”
Comprehensive internal communications form a crucial pillar in affecting any business transition, be it a change in policy, leadership, or operating systems. Being transparent by keeping employees in the loop helps them understand, accept, and adapt to such changes. This approach also alleviates fears associated with change and fosters trust in the leadership.
Mergers and acquisitions (M&A) can be a huge challenge and often fail due to misunderstandings and conflict that result from poor communication. A primary concern for employees is job security. A main concern for organizations is employee retention. An effective internal communication plan will ensure employee engagement and give management the opportunity to address and resolve anxieties.
Strong internal communication is the backbone of a positive workplace culture. It reinforces company values, builds trust, and shapes the organization’s identity, both internally and externally. Regular updates, celebrating wins, and recognizing individual contributions all boost morale and create a more engaging, respectful environment.
Including employee wellness initiatives in your communication strategy shows that people — not just performance — matter. This human-centric approach aligns with current research, such as Gartner's, which highlights that giving employees more control over their work increases productivity and loyalty.
This shift acknowledges that
Fostering open, honest communication not only promotes a healthier culture but also improves retention and strengthens your employer brand. It’ll help increase employee loyalty, improve retention rates, and go a long way to building a positive organizational culture.
A solid internal communications strategy not only improves the employee experience but also nurtures an environment where people want to stay and grow their careers. Effective communication and open dialogue breeds trust among the workforce, which in turn leads to an improvement in employee retention.
While effective employee communication increases employee retention, when they don’t, business strategies tend to be ineffective.
The key is to have an open, healthy line of communication. Communicating openly, honestly, and regularly will promote trust and loyalty and improve morale. This will help to improve employee retention and reduce turnover.
Good internal communications ensure that the leaders’ messages, directives, and visions reach the employees in an authentic, concise, and understandable way. This way, effective internal communication highlights the leadership’s transparency and willingness to maintain open lines of communication with employees. This approach fosters trust and strengthens the relationship between leadership and staff members.
Understanding why internal communication is important is the first step towards developing a transformative internal communication strategy for any business. Good internal communications ensure that employees are aligned with the brand vision and promise which in turn, contributes positively to the customer experience.
On the contrary, poor communication can hamper productivity and employee satisfaction, thereby creating rifts within the company culture. Engaging with employees via internal communications channels, be it social media or traditional mediums, can provide valuable employee feedback and help the management identify specific areas of employee dissatisfaction.
An internal communications tool such as an internal newsletter or an employee newsletter is a great way to disseminate company news and keep your workforce intact. An email builder can assist with creating custom email lists for varying employment levels or functions while assuring list management, resulting in clear internal communication.
But there’s a caveat, there’s evidence that many large companies believe that their internal communication processes are running smoothly because they are paying for communication tools. But many haven’t analyzed what they need and many more don’t utilize the full potential of the tools that they have.
Another problem, as Andres Tapia from Korn Ferry points out, is that very often, “DEI efforts have been too solely focused on their social-justice aspects.”
“Above all, many experts say, if diversity and inclusion efforts are to survive — and perhaps thrive — their advocates need to frame them as ways to improve the business’s bottom line.”
Korn Ferry
Turn your internal communications strategy around today
Leveraging internal communication software or internal communications software can ensure consistency, relevancy, and regularity in communication. Investigating email analytics can provide data-driven insights on user engagement, measure effectiveness, and help optimize your communication strategy.
Not only will good internal communications software provide a comprehensive view of the internal communications landscape, but it also has the potential to serve as a critical employee wellness tool. Ensuring effective internal communication and transparent two-way dialogue can significantly enhance the employee experience.
Additionally, organizations can use an internal communication tool to deliver personalized messages to employees directly to their email inboxes. This is a powerful way of fostering a sense of informality and comfort. It also enables the integration of informal communication and professional discussion, making employees feel part of the corporate brand identity. It could easily be a first step in transforming them into active brand promoters.
An effective internal communication plan is never a one-size-fits-all solution. It requires an intimate understanding of your business, employees, and company culture. Inclusivity is a crucial element of any internal communications strategy. For this reason, business leaders must ensure that everyone, regardless of where they’re working, is informed and involved.
Furthermore, when considering the diversity of communication channels – from internal emails and employee newsletters to social media platforms – it is essential to tailor messages for different platforms. This ensures not just internal but also effective external communication, and it maximizes employee engagement.
A thoughtfully designed internal communication plan cultivates a culture of openness. It also encourages proactive discussions and reinforces the brand vision. In essence, understanding why internal communication is important, and how to deploy it effectively will bolster the health and longevity of most businesses.
Cerkl Broadcast provides a holistic approach to employee communications. It modernizes the employee experience and enables internal communicators to share real-time, cross-channel analytics with their teams. High-powered and streamlined, Cerkl software also empowers team leaders to send targeted communications to preferred communication channels.
Additionally, Cerkl Broadcast software is secure and compliant, which is a vital element of any top-quality communication software.
The resources Broadcast offers are versatile and adaptable. Here’s how they will help you with the 11 issues we suggest you address to ensure your internal communication strategy is effective:
Are you still asking the question, why is internal communication important? If you can see how important it is, have you assessed the effectiveness of your internal communication strategy? Do you focus on employee engagement? Are you still weighing up your needs and trying to assess them? We know how difficult it is to work through all these issues. So, we’ve done the research for you and we’ve prepared an in-depth whitepaper that will give you an in-depth overview of the importance of internal communications. Don’t miss the opportunity to access The Importance of Internal Communication today.
Turn your internal communications strategy around today
Why is internal communication more important than ever? Effective communication forms the foundation of any successful business. But despite the fact that the vast majority of business leaders recognize this fact, employees are highly critical of the levels of effective communication in their organizations. There’s a chasm between the two, and it’s vital that leadership closes the divide.
What are the benefits of good internal communication? The benefits of good internal communication are vast and varied. It can enhance employee engagement, boost productivity and employee performance, improve morale, and promote DEI. It can also promote innovation, help mitigate conflict, build a positive company culture, strengthen leadership, and boost employee retention.
What is the power of internal communication? The power of internal communication lies in its ability to foster collaboration, alignment, and engagement among employees. It ensures that everyone within an organization works towards common goals, and feels valued and informed. Ultimately, this will drive productivity and innovation. Effective internal communication can also boost employee morale and job satisfaction, contributing to a positive workplace culture.
Why is internal communication important for employee retention? Internal communication plays a crucial role in employee retention because it helps make employees feel valued. When employees receive regular updates, feedback, and recognition from their organization, they are more likely to have a sense of belonging and purpose. This, in turn, leads to higher job satisfaction, a stronger commitment to the company, and a decreased likelihood of seeking employment elsewhere.
Turn your internal communications strategy around today
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