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The style of communication used by a business, whether formal or informal, is determined by company culture. The shared values, attitudes, and actions of a company and its employees define company culture. The culture affects the way team members interact with customers and with each other. It also determines how decisions are made and communicated. 

Company culture plays a big role in effective communication. Besides determining the degree of formality used in business communications, it influences the communication mediums used in the company. These may include a combination of face-to-face meetings, videoconferencing, email, phone calls, and text messages. 

Here are Ten Reasons Why Your Company’s Success is Determined by Effective Communication.

1. Increases employee engagement. 

Effective internal communication between management and employees is one of the key factors in keeping employees engaged. According to SHRM, “Not only does engagement have the potential to significantly affect employee retention, productivity, and loyalty, it is also a key link to customer satisfaction, company reputation, and overall stakeholder value.”

2. Reduces turnover. 

Engaged employees who feel informed about the business are less likely to look for jobs outside the company. The key is providing the right about of information to get the job done, but not so much that it becomes overwhelming.

3. Connects remote workers. 

Working from home is here to stay for many workers, making effective internal communication more important than ever. Challenges to be overcome include geographic distance, time zone differences, and language barriers.  

4. Discourages email overload. 

Too many businesses rely on email for business communication, causing the average corporate employee to spend a quarter of their time on email tasks. An effective business communication strategy uses a variety of communication methods and filters outgoing messages so they are only received by those who really need them.

5. Boosts productivity. 

Receiving too little information can leave employees unmotivated and unable to perform their job duties. The McKinsey Global Institute has found that productivity increases by 20 to 25% in companies where employees feel connected. Distributing too much information can make it difficult to locate a resource when it’s needed. Providing the right information at the right time is the key to using business communication to boost productivity.

6. Encourages knowledge sharing. 

Companies expect employees to learn and grow in today’s dynamic workplace environment. Effective internal communication allows them to share what they’ve learned and contribute to the company’s knowledge base. Guidelines for external communication can help them share their knowledge with customers and others in the industry.

7. Breaks up information silos. 

When company culture prohibits information sharing between groups, the information can become vertically siloed and inaccessible to outsiders. Open communication and a willingness to share information will eliminate silos and clear the way for collaboration across the organization.

8. Supports inter-departmental collaboration. 

Effective collaboration is based on open and honest communication. To work together, departments need to be on the same page and have access to the same information. Regular meetings, shared planning sessions, and timely updates all help bring work groups together.

9. Promotes customer satisfaction. 

Good internal and external communication is directly connected to customer satisfaction and retention. When the customer support is a priority, good business communication helps customer-facing employees easily access the information needed to answer customer questions and concerns. 

10. Develops a positive company culture. 

In the end, company culture defines the degree of openness and transparency the company exhibits in all forms of communication. The best way to develop a positive culture of engagement and collaboration is to focus on effective communication inside and outside the company.

The larger the business, the harder it is to communicate effectively. This makes it even more important to put a strategy in place that addresses both internal and external communication. The rewards for success include increased retention and improved productivity, as well as a company culture built on trust.


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