Wednesday 19 November 2008

Effective Internal Communications – why it’s so important – reason #2

Good reason # 2 - Maintain operational effectiveness

Uncertainty due to a lack of effective internal communication can cause high performing employees to jump ship. Low morale within remaining staff can impact customer interactions and damage brand identity.

Uncertainty can also damage a company’s culture. Competition for internal resources can increase between (and inside of) departments. Focus can shift onto projects that ‘look good’ but don’t really contribute towards real business objectives.

Good employee communications can enable you to retain your best employees, protect your company culture and maintain the strength of your brand. According to the U.S. Department of Labor, it costs at least one-third of a new hire's annual salary to replace them. There are also associated opportunity costs such as lower productivity during re-training to consider. It is much more cost-effective to retain good staff and profitable customers than to replace them.
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