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The importance of Employee Communication in the Workplace

Employers often underestimate the value of effective employee communication. In reality, communication impacts many different areas of your business. Take a look below to find out more.

70% of company mistakes are due to poor communication.

Gartner Research

Effective employee communication in the workplace is an integral part to the success of any organization. It is what drives productivity, relationships and engagement and also mitigates conflict. During the pandemic, we saw the adoption of remote working from companies all over the world. Because of this, businesses need to be on top of their communication now more than ever. 

Research by the US company, Gartner shows that 70% of the company’s mistakes are due to poor communication. A poor standard of employee communication in the workplace often demotivates employees. This leads to an unhappy and unproductive workforce.  

In this blog we will discuss the effects of employee communication in the workplace and the various areas it benefits when managed correctly.  

The Impact of Poor Employee Communication on the Workplace

employee communication

Poor employee communication can have significant negative impacts on the workplace. Firstly, it leads to misunderstandings, errors and mistakes, leading to wasted time and resources, decreased productivity and profitability. This can result in financial losses for the company and damage to its reputation. In fact, yearly, companies with a workforce of 100 employees lose an average of $420,000 due to lack of communication. Additionally, employees may become frustrated, demotivated, and may even leave the company, leading to high turnover rates and the costs associated with hiring and training new employees.

Poor communication also hinders the development of teamwork and affects the relationship between employees, managers and departments. Miscommunication can create tensions, conflicts, and lack of trust among employees. The lack of clear expectations, goals, and feedback leads to decreased morale and motivation. This results in a toxic work environment and affects overall job satisfaction, leading to higher absenteeism and staff burnout. Poor communication also undermines the ability of managers to lead effectively, as they struggle to get their message across, delegate tasks, and receive accurate and timely updates. So, now that you have an understanding of the impact poor employee communication can have… Let’s look at how effective employee communication can truly be.


Productivity is arguably the most important aspect of any organization and is one of the main components to whether a business is successful or not. Communication greatly effects productivity. Effective communication mitigates the chance for misunderstandings to occur and allows for all employees to be on the right track when it comes to working on tasks. Managers often waste time poorly communicating their tasks to subordinates. This leaves employees confused about the exact goal at hand.  

Employees can also feel more empowered through effective communication. The more information your employees have the more confident and direct they will be in their output. According to the case study of HEC. prof. Charles-Henri. Besseyre des Horts, it is proven that those companies that are transparent and employees have more empowerment, are usually more productive. 

It is also important to have the right software in place to allow for clear communication. Celayix mitigates the possibility of poor communication through our mobile app which allows employees and managers to seamlessly communicate to each other through the Celayix portal. Shift-based employees across various industries can easily understand their location of work, hours, and payroll. Employees can reach out to their line managers if an error occurs or something is misinterpreted. The Celayix chat feature allows them to keep all workplace communications in one secure location.  

Creates Better Client Relationships 

employee onboarding

Communication is essential throughout the employee onboarding process. For new employees, being trained in a new role requires a high standard of communication. This makes sure that they are as well equipped for their tasks going forward. The better trained your employees are in a client-facing role, the happier your clients will be with the service they are receiving. Efficiently trained customer support associates can: 

  • Mitigate and resolve conflict 
  • Understand clients’ needs 
  • Help the customer feel understood 
  • Present new information in a way in which the client will be more receptive  

Increases Employee engagement  

Employee engagement involves providing the right conditions for all members of an organization to give of their best each day and commit to their organization’s goals and values. 

1. Leadership communication 

Research shows that leadership communication is the most influential internal communication factor to employee engagement. Internal communication teams have a powerful role in supporting, coaching and reminding leaders of communication’s importance. Line managers especially need robust communication training; many become managers because of their communication skills, rather than because they’re good at their jobs. 

CEOs, directors and their leadership teams must be the organization’s best communicators. Internal communicators should be part of senior leadership teams, not only to keep communication at the top of the agenda, but also to coach and support leaders in their communication. This is especially important, as face-to-face communication about the organization’s vision, strategy and progress is strongly linked to better employee engagement. 

2. The organization’s reputation 

Anything that affects what employees think of the organization they work for or what they think their friends and family think of the organization they work for directly correlates with employee engagement. We spend 40% of our lives at work. So, of course, we want our organization to reflect our goals and identity.

Businesses should communicate topics that elevate their reputation in employees’ minds. Orientate this around positive media coverage, awards and prizes, and corporate social responsibility. You should also provide the organization’s stance on negative media coverage.  

3. Employee voice 

Employee voice is a very important element of employee communication. It greatly correlates with employee engagement and often isn’t utilized effectively. Employee voice is when employees believe they have a say, and that it leads to action. Many leaders talk about two-way communication, but rarely practice it which can be a waste when it comes to maximizing your workforce through communication.  

They can support and influence leaders to encourage and enable employees to have a voice, both in their day-to-day roles and with bigger business issues. In many cases employees are actually more aware of issues in relation to their managers and so make sense to empower them. Communicators can also provide a platform where employees can share their opinions. Use an informal channel, such as enterprise social media, or a more formal platform, such as an employee feedback tool. Listen to employees, and share their ideas with the people in influential positions. 

Mitigates Conflict 

workplace conflict

Naturally, employee communication has a big role to play in conflict management. Poor communication leads to misunderstandings and eventual conflict. It is essential for organizations to implement clear channels of communication to avoid such damaging issues. With the workplace becoming a more diverse environment, misinterpretations are becoming more likely. Each individual must be clear in what they intend to convey to others. Thoughts must be carefully put into sensible and relevant words for others to understand well. The use of derogatory words towards subordinates is especially discouraged. It often escalates conflict quickly and affect more than one individual.  

Effective communication is also done by assuming others may not have carried out a particular task before. So, you need to teach them certain things. Haphazard thoughts only add on to confusion and result in displeasure and disagreements. It is important to communicate sufficient and correct information to your employees. This makes them appropriately prepared when they attempt a task. Don’t just communicate for the sake of it. 

The inclusion of workers is an essential aspect of management. It is generally observed that conflict among individuals arises when they feel neglected or left out. Transparency is essential at all levels for better understanding and avoiding conflicts. 

Don’t underestimate Employee Communication 

Never underestimate the importance of effective employee communication in the workplace. It is what drives productivity, workplace relationships, engagement, and conflict mitigation. Without these components, organizations would not be able to function effectively. Both managers and employees need to be mindful of the way and manner in which they communicate with other workers. The implementation of clear and strong communication channels is essential to the growth and success to the company. Workers feel more empowered, comfortable and welcome in their daily work lives which in turn drives productivity. 

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