Why Internal Communications is Important in 2024 (Explained)

Why Internal Communications is important becomes clear when observing organizations that overlook or disregard this crucial aspect. Such organizations do exist, often to the detriment of their business operations.

Several enterprises may lack the means to craft an internal communication plan; others might have a strategy but struggle with sustaining it due to limited resources or inadequate tools. 

This situation is quite comprehensible. 

However, understanding why effective internal communications are crucial (as further explained in this article) reveals its necessity for your organization's vitality. 

Why is this so? Simply because effective, consistent dialogue with your team members is integral to organizational success. 

What is internal communication?

The phrase "Internal communication" refers to The way a company interacts with its people and the relationship and mutual engagement between an organization and its constituents.​

• Internal communication pertains to the comprehensive perspective on how a company manages its exchange of information. 
• On the other hand, internal communications encompass the specific tools, strategies, and channels utilized for this purpose.

It pretty much refers to the way information is exchanged within an organization. It encompasses disseminating messages from management and fostering dialogue among all employees. The goal is to ensure everyone is informed and actively participating.

Numerous elements contribute to internal communication, such as announcing new policies, updating company performance, or conducting opinion polls. Typically, departments like HR, marketing, or PR manage these activities, yet contributions from all are welcome.

Effective internal communication is crucial. It ensures all are well-informed, fosters a cohesive culture, boosts enthusiasm about work, and aids in maintaining stability during turbulent times. 

Additionally, it can add an element of enjoyment and interest to the workplace.

Why is Internal Communication Important?

​Internal communication plays a crucial role in keeping individuals informed and engaged, making it an indispensable element that significantly influences various aspects of work, ultimately impacting the bottom line of an organization. 

The provision of necessary information is not only essential for employees to fulfill their roles effectively but also serves as a vital link, connecting them to the organization and fostering a sense of community among colleagues. 

The alignment between workers and the organization often stems from effective internal communication, contributing positively to the overall organizational synergy.

Conversely, if internal communication falters, it can result in a disconnect between employees and the organization, potentially leading to adverse effects. A lack of alignment and understanding can hinder productivity and collaboration, highlighting the pivotal role that internal communication plays in shaping the organizational landscape.

The positive contributions of effective internal communication extend across various facets of business operations. Whether facilitating easy access to information, promoting regular stand-up meetings, or fostering a culture of employee appreciation, internal communication significantly enhances the overall employee experience. 

Despite the numerous advantages it offers, there are specific benefits that stand out, underscoring the importance of prioritizing and optimizing internal communication strategies for the sustained success and well-being of the organization.

What is an example of internal communication in the workplace?

 As companies cultivate connections with customers and the broader public, they equally depend on internal communication. Management communicates its expectations to employees, fostering collaboration on projects aimed at achieving organizational goals. 

Understanding diverse communication channels is crucial for ensuring efficient information exchange and enhancing overall productivity.

Here are 10 internal communication examples practices commonly used in the workplace:

• Email Updates: Sending regular email updates to employees regarding company news, announcements, and important information.
• Intranet Platforms: Utilizing company intranet platforms for sharing documents, policies, and news, and facilitating internal discussions.
• Team Meetings: Conducting regular team meetings to discuss project updates, address concerns, and foster collaboration among team members.
• Instant Messaging Apps: Using instant messaging apps for quick and informal communication within teams, allowing for swift information exchange.
• Employee Newsletters: Creating and distributing newsletters to highlight achievements, share updates, and recognize employee contributions.
• Town Hall Meetings: Organizing town hall meetings where leadership addresses the entire workforce, sharing strategic plans and inviting questions.
• Visual Communication Tools: Employing visual aids, such as charts or infographics, to simplify complex information and enhance understanding.
• Internal Social Media Platforms: Establishing internal social media platforms for employees to connect, share insights, and engage in discussions.
• Digital Screens and Bulletin Boards: Using digital screens or physical bulletin boards in common areas to display important announcements, achievements, and upcoming events.
• Leadership Blogs or Vlogs: Having leaders publish blogs or video logs (vlogs) to communicate their vision, share insights, and connect with the workforce on a personal level.

5 Reasons Why Internal Communication is Important in the Workplace

An effective internal communication strategy enables a more focused approach. 

Technologies like cloud-based intranets can facilitate this process. 

1.Keeps employees informed and aligned​

Consistent and transparent communication plays a pivotal role in ensuring that every team member in the workplace is well-informed about the company's objectives, strategies, and ongoing developments. 

This not only reduces ambiguity but also empowers employees to make well-informed decisions, fostering collaboration and unity across various departments.

The consequence of not keeping employees informed and aligned in the workplace can have several negative impacts on both individual employees and the overall organization, for example it can Decreased Morale.  

When employees are not informed about the company's goals, strategies, and important updates, they may feel disconnected and undervalued. This can lead to a decrease in morale and a lack of motivation to contribute their best to the organization, and no workplace whats that to happen

This is why some organizations with remote employees prefer social intranets as an internal communication tool to keep employees informed and up-to-date. It provides a single, accessible platform for staying updated on company news and updates.

2. Boosts employee engagement and motivation​ 

When employees feel valued and are kept abreast of company happenings, they develop a stronger sense of belonging and connection to the organization. 

Regular communication regarding achievements, challenges, and individual contributions amplifies morale and dedication, resulting in a workforce that is more engaged and motivated. 

Not boosting employee engagement and motivation in the workplace can also lead to various negative consequences, for example Lack of motivation can impact the quality of work. 

Employees may not put in the extra effort or attention to detail, leading to subpar results and potentially affecting the organization's reputation. 

Implement a internal communication tool to facilitate the delivery of internal communication in the workplace.

3.Enhances collaboration and teamwork 

Effective internal communication acts as a catalyst for the exchange of ideas, knowledge, and best practices among team members. 

Breaking down silos, it encourages teamwork and enables employees to learn from one another, ultimately enhancing problem-solving capabilities and fostering a culture of innovation.   

Eighty-one percent of employees contemplate quitting their jobs because of dissatisfaction. 

And, 79% of employees emphasize that well-defined opportunities for career advancement play a crucial role in influencing their job satisfaction. 

Disengaged employees impose a substantial financial burden on organizations, costing between $450 billion to $550 billion annually. 

Also, employees experiencing low job satisfaction are three times more likely to report symptoms of depression.

4.Builds a strong company culture

Open and transparent communication sets the foundation for a positive and inclusive workplace. 

By strengthening trust between employees and management, it reinforces adherence to company values and elevates overall employee satisfaction. 

Building a strong company culture requires nurturing an environment where employees feel valued, engaged, and motivated. It's not just about ping pong tables and free snacks, but about fostering a deeper sense of purpose, connection, and shared values. 

Seek employee input, instead of imposing culture from the top down, engage employees in defining and shaping the workplace culture they desire. 

Utilize surveys, conduct focus groups, and promote open communication to foster active participation in shaping the organizational culture.

5. Supports change management and adaptability

In any organization, change is inevitable. Clearly communicating upcoming changes, their rationale, and their individual impacts helps alleviate employee anxieties and ensures a smoother transition process. 

This proactive communication approach supports the organization in navigating changes effectively and fosters adaptability among its workforce. 

To mitigate these consequences, it is essential for organizations to establish effective communication channels, provide regular updates, and foster a culture of transparency and collaboration. 

Keeping employees informed and aligned contributes to a positive work environment, enhances productivity, and promotes overall organizational success.

Different Types of Internal Communication Types and Channels

​The dynamic nature of workforce demographics emphasizes the importance of maintaining a variety of communication channels. 

Whether employees are situated within the confines of the office or working remotely, each setting presents distinct advantages for effective internal communication.

Benefits and Impact of Effective Communications in a Business

When organizations implement a structured and well-thought-out communications strategy, numerous benefits accrue for both the business and its employees. Here, we underscore the most significant advantages that businesses can enjoy through effective communication: 

1.Enhanced Employee Engagement 

Employees experience increased engagement when they perceive themselves as actively involved and valued recipients of business communications and updates. 

Maintaining high levels of employee engagement is crucial as it positively impacts various aspects of the business, such as employee retention and attraction.

2.Building Strong Teams and Relationships

Effective communication within a business plays a crucial role in fostering improved internal relationships, positively influencing team building. Teams characterized by connected employees experience a noteworthy increase in productivity, ranging from 20-25%. 

Strong internal relationships, facilitated by effective communication, contribute significantly to enhanced activity levels and overall business success.

3.Enhanced Productivity and Efficiency 

Effective and consistent communication within businesses leads to heightened productivity and improved efficiency in day-to-day operations. 

When employees are engaged and receive the desired communication from their employer, studies suggest they are 2.5 times more likely to be engaged in their work (Gallup).

McKinsey further emphasized that organizations witnessing strong communication practices experience a significant boost in employee productivity, ranging from 20-25%.

4.Building Loyalty and Trust 

 Maintaining employee engagement and fostering a strong connection with the employer relies heavily on trust and credibility. Establishing transparent and honest communication throughout the organization is essential for cultivating trust and loyalty among employees. 

Those who exhibit loyalty and have a high level of trust in the business are inclined to stay with the company for the long term, demonstrating a commitment to actively contributing to business activities and objectives.

5.Achieving Growth and Success

When employees are actively engaged, highly productive, and demonstrate strong loyalty and commitment to the organization, the result is overall business growth and success.

Regardless of the size of your business, implementing clear communication strategies and effective change management processes ensures that company-wide messages are conveyed appropriately, at the right time, reaching all employees. 

This proactive approach contributes to sustained growth and success for the organization.

Businesses with effective communications plans in place ​

Numerous businesses excel in various facets of their communication strategies, making it challenging to single out a sole champion. Nonetheless, certain companies consistently distinguish themselves through their effective and comprehensive approaches. 

Across different industries, notable examples include:

Internal Communications:

• Southwest Airlines: Prioritizes employee engagement with initiatives like "Communicate to Motivate" and daily huddles, fostering a robust company culture and building trust.
• Google: Demonstrates an open and transparent communication culture through internal platforms like Google+, Groups, and Hangouts, keeping employees well-informed and encouraging collaboration.
• Patagonia: Empowers employees with decision-making authority and emphasizes open communication, creating a strong sense of ownership and loyalty throughout the organization.

External Communications:

• Apple: Masters minimalist and consistent messaging, coupled with expertly crafted product reveals, creating anticipation and excitement around their launches.
• Starbucks: Leverages storytelling and emotional connection to build a customer community around their brand, transforming into more than just a coffee shop.
• Netflix: Tailors personalized communication to different viewer segments and responds agilely to trends and public opinion, staying relevant and connected with their audience.

Crisis Communications:

• Domino's Pizza: Reacts swiftly and transparently to public missteps through CEO apology videos and immediate action plans, showcasing dedication to accountability and rebuilding trust.
• Microsoft: Demonstrates proactive and consistent communication during security breaches, reflecting a commitment to customer safety and openness in handling challenging situations.
• Johnson & Johnson: Sets a standard for transparency and empathy in addressing public concerns, particularly highlighted by their handling of the Tylenol poisoning crisis in the 1980s.

It's essential to recognize that effective communication strategies evolve and vary based on industry, target audience, and specific goals. 

These examples offer insights into diverse approaches that have proven successful for various businesses. 

How to Improve Internal Communication in your Workplace and Strategies To Boost and Improve Internal Communication​

Given the critical role that internal communication plays in the success of businesses, it is crucial for business leaders to understand how to implement it effectively within their workplaces.

In the context of the workplace, the strength of an organization is often reflected in the quality of its internal communication strategy. Despite this, there is a common perception that enhancing internal communication ranks low in business priorities. 

This underscores the persistent challenge of elevating the priority of internal communication initiatives within the business landscape. Recognizing and addressing this gap is essential for fostering a healthier and more communicative organizational environment.

1.Ensure to touch base with your employees.

Consistently engaging with your employees is crucial for enhancing communication within the workplace. An effective approach is to schedule regular in-person or online meetings every few weeks, providing a platform to discuss ongoing projects, personal matters, and organizational updates.

Promote an environment where employees feel comfortable sharing their thoughts and opinions. Encourage them to provide recommendations, voice concerns, and share their perspectives on the company and their assigned tasks.

For instance, hosting monthly team meetings can be an opportunity for open discussions about ongoing projects and upcoming initiatives. Additionally, consider implementing a suggestion box or a digital platform where employees can submit their ideas and feedback anonymously.

By fostering an atmosphere where your team knows their opinions are respected and valued, you not only enhance internal communication but also witness significant improvements in your company culture. 

This inclusive approach contributes to a more collaborative and communicative work environment.

2.Collect Input on Your Internal Communication Strategy

Try to gather as much feedback as possible, input is key here.

Continuing, seek insights from your colleagues on potential enhancements to communication within the workplace. While a formal survey may not be necessary, it's advisable to document the collected feedback.

Utilize this feedback to explore innovative approaches for fostering communication, fostering a culture of continuous improvement. 

A well-crafted internal communication strategy should regularly assess these channels against employee engagement, aiming for ongoing enhancements in internal communication.

3.Ensure that internal knowledge is easily accessible

Communication takes various forms, extending beyond traditional two-way or one-way direct interactions. Information and internal knowledge constitute a distinct mode of communication, but its effectiveness is realized only when individuals can readily locate the required resources.

In any industry, the routine activities of document management and knowledge sharing are crucial. It is imperative that your employees can effortlessly locate files, photos, documents, and information.

Implementing an efficient social intranet serves as an excellent method to consolidate this information, making it easily accessible to the entire organization. 

To enhance internal communication, begin by streamlining how your staff discovers pertinent information.

4.Use a powerful Employee Communication Platform equipped with tools to enhance engagement.

In recent years, an increasing number of businesses have recognized the influential role social media plays in engaging with customers. 

However, fewer businesses realize that a similar social power, a social intranet, can be harnessed to enhance internal communication, bolster engagement, and keep employees informed.

Encourage your employees to engage with and share interesting posts about your organization and company values. 

Extend this practice beyond external social networks like LinkedIn and leverage the same advantages within your internal social intranet – a centralized hub for information sharing, peer recognition, company communications, and more.

With AgilityPortal's social intranet, you can employ social tools to harness the benefits of social media in your daily business operations.

Enable employees to share their thoughts and interests, fostering meaningful, work-related conversations. This approach aligns relationship-building with your company goals.

AgilityPortal stands out as an advanced social intranet designed for contemporary businesses, accommodating remote and hybrid teams. Witness the capabilities of AgilityPortal's social intranet in action.

5.Arrange Your Documents for Efficient Internal Communication 

If consistently locating information within your departments proves to be a challenge, it indicates a lapse in adhering to best practices for internal communication.

Leverage your intranet to streamline the organization of your teams, incorporating both individuals and pertinent information. This transformation can establish it as the primary resource for locating and retrieving data.

Department heads can promptly communicate with their team members by sharing documents and delivering updates through an internal notification system.

This facilitates seamless communication between management and team members, allowing easy access to documents and information as needed. This proves especially beneficial for new employees, enabling them to quickly find everything necessary and hit the ground running. 

6.Promote the asking of questions and encourage open discussions 

 In the workplace, questions play a pivotal role in fostering effective communication.

Just as you find it natural to pose questions to any team member, it's equally essential for your employees to feel at ease doing the same. This sense of approachability should extend to employees at all levels, be it newcomers, managers, executives, or even stakeholders.

Cultivate a company culture where the mindset of 'questions are welcome' prevails. Actively promote two-way communication by inviting your employees to share any questions they might have.

Additional tip: Establish a communicative environment where questions and ensuing discussions are characterized by openness, honesty, and respect, setting a positive tone for the entire organization.

Find out how AgilityPortal can improve your Internal Communications in your Organisation

With over one million daily users, AgilityPortal has proven instrumental in elevating employee engagement, satisfaction, and retention for organizations adopting it. 

It represents the most impactful change you can implement to enhance internal communication. 

If you're interested in discovering more about how AgilityPortal can benefit your organization, schedule a demo today. 

Wrapping up on Why Internal Communications is Important in the Workplace

An in-depth familiarity with the dynamics of your business and careful preparation are prerequisites to developing a successful strategy for internal communication. 

You may adapt your communication strategies to suit the various requirements of stakeholders by methodically determining who you are trying to reach and what you want to achieve. 

Your messages will reach and connect with your target audience if you take the time to choose your communication channels carefully and create a strong content strategy. In order to keep everyone engaged and honest, it's essential to set up a regular communication plan. 

Your strategy may be continuously improved by regular review and adoption based on metrics and feedback. This will lead to a more united and informed workplace culture.