Internal Communication Blog

The Importance of Effective Internal Communication

and how to build an internal communication strategy

Estimated reading time: 9 minutes

The success of any organization depends on effective internal communication. It guarantees that every employee is in sync with the company’s goals and objectives, boosts general productivity and engagement, and promotes a supportive workplace environment. Internal communication is crucial for organizations, but it can sometimes be challenging for business operations.

Data on inadequate corporate communication and the harm it causes organizations

60% of businesses lack a long-term internal communication strategy. This lack of preparedness may cause employee uncertainty and misconceptions, lowering morale and decreasing productivity.

Poor internal communication has external repercussions as well. Consumers are likely to have a bad opinion of the business if they are given contradictory information by employees or encounter poor response times because of miscommunication. Businesses lose an average of $62.4 million a year due to poor communication, according to David Grossman reported in “The Cost of Poor Communications”.

Additionally, organizations with poor internal communication have higher employee turnover. According to a Watson Wyatt study, businesses with good communication techniques had a 47% greater shareholder return than businesses with bad techniques. To secure their long-term success, companies must prioritize effective communication methods.

What is internal communication?

Internal communication refers to the information exchange that takes place between management, departments, and employees within a company. It includes all communication channels, including verbal exchanges, emails, memos, intranet, and social media. Internal communication ensures that everyone in the company is on the same page and working toward the same objectives.

All organizations must have effective internal communication to succeed. It helps to develop a sense of community and collaboration by ensuring employees are informed of corporate policies, objectives, and initiatives. Also, good internal communication encourages information exchange so that staff members may learn from one another and make more informed decisions.

Internal communication’s effects on various corporate activities and employee engagement

Internal communication significantly impacts many corporate processes and employee engagement factors. Involving them in the decision-making process and keeping them informed, it helps to raise employee morale and work satisfaction. Employees are likelier to be engaged and productive when they feel valued and connected to the organization.

Furthermore, essential to managing change within an organization is internal communication. Employees may find change frightening, but good communication can help reduce this unease by keeping them informed and participating in the process. Employees are more inclined to accept change and contribute to its success when they know its causes and how it will affect them.

Also, effective internal communication is essential for developing a positive workplace culture. It helps in fostering openness and confidence between staff and management. Employees are more likely to feel valued and invested in the organization’s success when they feel heard and understood.

Effective internal communication is a key component of any successful company. It helps increase employee engagement, foster information sharing, manage change, and develop a healthy organizational culture. We will explore the numerous internal communication challenges in the following chapter.

Common internal communication challenges and solutions

Any organization’s success depends on efficient internal communication. It helps create a shared understanding of the organization’s objectives, goals, and standards. Internal communication methods are difficult for organizations to execute, which can hurt staff satisfaction and production. We’ll discuss some typical internal communication problems in this chapter and solutions.

No long-term internal communication strategy

The lack of a long-term corporate communication plan is one of the organizations’ biggest issues. Organizations frequently use ad hoc communication methods, which can cause employee misunderstanding and inconsistency. A long-term internal communication strategy facilitates the distribution of consistent, timely information to all employees.

Organizations must develop a communication strategy consistent with their vision, mission, and values to overcome this difficulty. The plan should include regular communication channels such as digital signage, team meetings, social media updates, or a complete employee communication platform. Organizations should also regularly survey their workforce to understand their comments and modify their communication tactics.

Horizontal communication replacing top-down communication

Transitioning from a top-down to a horizontal communication style is another typical internal communication difficulty. Employees receive information from management in typical top-down communication but are not allowed to voice their opinions or suggestions. Disengagement and a lack of confidence in management may result from this.

Organizations must set up two-way communication channels that welcome employee suggestions and criticism if they are to address this issue successfully. This can involve setting up suggestion boxes for staff members, conducting surveys, and holding frequent feedback meetings. Organizations should also support transparent and open communication between management and employees.

The significance of feedback and ongoing development

Effective internal communication depends on feedback. It can be challenging to determine whether the communication is successful without feedback. It’s crucial to develop to maintain the effectiveness of communication tactics continually.

Organizations should regularly survey their workforce for opinions on communication tactics to solve this difficulty. To improve communication, communication techniques should be modified considering the feedback. Organizations should regularly review and adjust their communication strategies to ensure they remain effective and relevant.

All organizations must have excellent internal communication to succeed, but implementing those methods can be difficult. Organizations must develop a long-term communication strategy, establish two-way communication channels, and promote feedback and ongoing development to address typical internal communication issues. By doing this, businesses may create an engaging, transparent culture that boosts employee engagement and productivity.

Communication is the responsibility of all employees

Internal communication should be the responsibility of all people involved, not simply the communication team. Everyone in the organization, from the CEO to Non-Desk Employee, is responsible for successful communication.

The roles of various stakeholders

Effective internal communication is a goal shared by all stakeholders in an organization. Setting the tone of communication, defining the organization’s vision, values, and goals, and ensuring that communication reflects these elements are the CEO’s and top leaders’ responsibilities. Managers must ensure that their teams know these factors and that all team members understand the organization’s goals and objectives. Also, employees should be accountable for conversing with one another, offering criticism, and requesting clarification when necessary.

Engaging employees with visuals and efficient information distribution

Using timely and relevant information to engage staff is essential for effective internal communication. Using visual information to engage staff and make communication more engaging and memorable is a great strategy. Infographics, videos, images, and other types of multimedia can all be considered visual content. To effectively distribute information, the target audience must be reached utilizing the right communication channels. Emails, newsletters, social media, intranets, digital signage, screensavers, employee apps, and employee communication platforms are examples of these channels.

Promoting feedback and two-way communication

Creating opportunities for two-way contact and feedback is an essential part of effective internal communication, in addition to just spreading information from the top down. Alignment with the company’s vision and goals can be improved by developing a culture of open communication and feedback. Employees should be encouraged to discuss their thoughts, ask questions, and offer feedback. This input can be utilized to enhance communication procedures and ensure that the organization’s and its employees’ demands are met.

Everyone has a role to play in ensuring successful internal communication, which involves teamwork. Clear, pertinent, and timely communication is a goal shared by all stakeholders in a company. Organizations can foster open communication and alignment with the company’s vision and goals by engaging employees with visual content, effectively spreading information, and fostering two-way conversations.

Why you need an internal communication strategy and how to create one

An efficient internal communication strategy can help businesses in achieving their objectives. An internal communication plan is a strategic approach that describes how a business will communicate with its stakeholders, employees, and other important parties. The company’s goals, objectives, and values are upheld by all employees thanks to a well-thought-out internal communication strategy, which ultimately boosts employee engagement and productivity.

The need for a strategy for internal communication

Internal communication can become unorganized, inconsistent, and ultimately useless without a framework. An internal communication strategy outlines the how, when, and where of communication within a company. Additionally, it guarantees that employees receive crucial information promptly and efficiently, improving engagement and retention rates. An internal communication strategy can help minimize an organization’s misunderstandings, confusion, and conflicts.

Important steps to develop a successful internal communication strategy

Planning an internal communication strategy effectively takes a careful and thorough process. Organizations can develop a thorough internal communication plan by following these steps:

  1. Examining the Organization’s Existing Situation: Understanding the organization’s present communication situation is crucial before creating an internal communication plan. This means evaluating current communication channels, spotting communication gaps, and learning about staff communication preferences.
  2. Specifying Communication Objectives and Goals: The organization must establish its communication goals and objectives after evaluating its current communication methods. These goals and objectives should be specific, measurable, achievable, relevant, and time-bound with the organization’s broader business objectives.
  3. Identifying and segmenting the Audience: It is important to identify the target audience to ensure that the relevant message is sent to the right people. Organizations can better target their messages to particular audiences and make sure that the target audience understands each message by segmenting their audience.
  4. Outlining Core Messages: The following phase outlines the key messages that must be delivered to the company. All employees should be able to understand the core messages if they are clear, brief, and straightforward.
  5. Specifying Strategies and Communication Channels: After establishing the key messages, choosing the most effective channels and delivery strategies is necessary. Various employee communication tools, like the corporate screensaver, digital signage, an employee app, may be used.
  6. Establishing an Internal Communication Calendar: An internal communication calendar guarantees that the company consistently communicates with its staff. A timeline for all communication activities, including when and how each message will be delivered, should be included in the calendar.
  7. Choosing Key Performance Indicators (KPIs): It’s critical to choose KPIs that will measure how well the internal communication plan is working. Surveys of employee satisfaction, comments on communication methods, or other indicators of the plan’s performance may be included in these measurements.

An intentional strategy and thorough evaluation of the demands and goals of the business are necessary for developing a successful internal communication plan. Organizations can create a thorough internal communication plan that guarantees all employees are in line with the organization’s goals, objectives, and values by following the crucial stages listed above. An efficient internal communication strategy boosts employee engagement, employee productivity, and the organization’s success.


Any successful organization must have effective internal communication. An effective internal communication strategy is more crucial than ever in today’s fast-paced, constantly evolving company environment. An organization’s operations can be significantly impacted by efficient communication, which can boost anything from collaboration and production to employee engagement.

The definition of internal communication, its effects on employee engagement and business operations, the significance of an internal communication plan, and the involvement of various stakeholders in internal communication have all been covered in this article. It has also highlighted some typical difficulties that firms encounter and how to deal with them.

By implementing an efficient internal communication plan, businesses may establish a more unified work atmosphere that promotes cooperation and feedback. Building an internal communication strategy that outlines goals and objectives, pinpoints the target audience, articulates key messages, and details strategies and channels of communication is essential. A communication schedule and key performance indicators (KPIs) should also be included in the plan.

In conclusion, everyone must take responsibility for good internal communication. Businesses should engage all stakeholders in the process and create a culture of open communication, feedback, and continuous improvement. Businesses can improve employee engagement, productivity, and overall success with the right strategy. Companies should involve all people in the process and foster a climate of open dialogue, constructive criticism, and ongoing development. With the correct strategy, businesses may increase employee engagement, productivity, and overall performance. Want to know how to improve internal communication in your organization? Get in touch with one of our consultants; they are happy to show everything Netpresenter can offer! Or download our free guide to find the right communication tools to reach your employees.

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Dave Schmeitz

Dave is Netpresenter's Online Marketing Manager. He likes to share his knowledge about engaging and inspiring employees. Dave also loves to travel and dance L.A. style Salsa and Bachata.