Employee Communication Impact Report 2024: Internal Comms Concerns Flagged & Solutions Offered

A new study conducted by the USC Annenberg School for Communication and Journalism and Staffbase reveals a significant disconnect between companies and their employees when it comes to internal communication. The Employee Communication Impact Report 2024 has flagged the most pressing concern as disconnect impacting employee engagement. However, numerous aspects of the report shed light on the current state of internal communication and the employee experience.

Key findings from the 2024 employee communication impact report

The study surveyed 1,007 employees and 20 Chief Communications Officers at large U.S. companies, including Levi Strauss, Merck, and Paramount. The research found: 

• Low employee satisfaction: Less than one third (29%) of employees are very satisfied with the quality and amount of internal communication received. Those who are satisfied report being 46% happier at work. 
• Supervisors are key but not always effective: Supervisors play a crucial role as the primary source of information. However, they are often seen as the “frozen middle” in communication. Only 49% of employees who receive messages from their supervisors are familiar with their company’s goals. Additionally, only 56% fully trust their line managers as a source of information. This indicated a significant gap that disrupts messaging flow and reduces overall communication effectiveness. 
• Employee loyalty and retention: Effective communication is vital for employee retention. Employees who receive sufficient information from their employer are 35% more likely to stay in their jobs for the next year. In contrast, 61% of those contemplating a job change cite poor internal communication as a key factor. 
• The future is about targeted, personalized communication: The rise of remote work and the increasing adoption of AI underscore the urgency of embracing more personalized communication strategies. This means understanding the evolving dynamics of work to personalize communication strategies that resonate with employees’ individual needs and preferences. 

Are companies failing to connect with their most important audience?

What do these numbers mean? Workplace dynamics are shifting as companies face unprecedented challenges, from talent shortages and new emerging technologies to economic instability and financial uncertainty. In this complex environment, effective employee communication is critical. Why? This disconnect is impacting employee happiness, commitment, and ultimately business performance. 

Examining the disconnect in perception

Although companies prioritize the strategic importance of internal communication, the study uncovered that employees are more focused on the quality and amount of information they receive. This leads to misalignment, as employees are often unfamiliar with company goals and vision. Overall, this suggests a lack of connection between employee understanding and senior leadership efforts. This leads to skewed perceptions of employee communication quality.

• 54% of employees do not feel very familiar with their organization’s goals and visions.
• 68% of employees are not well-informed about their company’s financial performance.
• 70% of employees don’t understand their company’s stance on social issues.

Various demographics also impact employee communication.

What can help mend this gap? Supervisors are crucial links in communication, but inadequate training can lead to a disconnect between leadership messaging and employee comprehension.

Action steps for CCOs and CHROs 

This disconnect between companies and their employees is a critical challenge for businesses seeking to retain talent and drive productivity. The study’s findings highlight a critical need for organizations to rethink their approach to internal communication. Although Chief Communications Officers, Chief Revenue Officers, and Chief Human Resources Officers are focused on strategy, employees are concerned about getting the right information at the right time. Additionally, they seek information from a source they trust.

Here’s how leaders can create an action plan and overcome this challenge: 

1. Develop targeted and personalized communication campaigns and programs that align strategic priorities with the information needs of employees. 
2. Deliver clear, concise, and relevant content addressing both strategic goals and day-to-day employee concerns. 
3. Invest in improving communication speed, flexibility, transparency, and employee feedback mechanisms. 

Develop a plan for focused communication

The Narrative Age author Frank Wolf (Staffbase co-founder and Chief Strategy Officer) has also developed a three-step plan for driving progress and bridging the gap between organizational goals and employee needs. Additionally, the employee communication strategy ensures alignment with external communications.

1. Lead with narrative-driven communication: Craft cohesive strategic narratives that connect employees to the company’s mission and strategic priorities, ensuring these narratives are reflected consistently in external communications. By empowering local leaders and communicators to adapt these narratives for specific audiences, companies can drive global alignment while ensuring local and external relevance.
2. Deliver clear, concise, and relevant content: Focus on both high-level strategic goals and day-to-day employee concerns. This ensures that internal and external messaging is aligned to avoid discrepancies that could harm both employee trust and the company’s public image. Updates should build on a consistent narrative, avoiding fragmented messaging, and reinforcing the company’s larger vision.
3. Enhance communication speed and transparency: Equip local leaders to communicate directly with their teams and external stakeholders. This eliminates unnecessary intermediaries and improves response times. Central communication teams should maintain control of company-wide messaging to ensure consistency and alignment across all platforms. This reflects the interconnected nature of internal and external communications.

What’s next? How leaders prepare for the future. Discover how to stay ahead of crises with outstanding employee comms solutions.

Final words on the state of employee communication

In an era marked by talent shortages, rapid technological advancements, and economic uncertainty, the need for effective communication has never been more critical. As the lines between internal and external communication increasingly blur, failing to align messages with employee needs and external perceptions can adversely affect satisfaction, retention, and productivity.

Organizations must prioritize and refine their communication strategies to foster a more engaged and committed workforce. This should also align with maintaining a cohesive and consistent public image. Understanding employee communication gaps is the first step in approaching the issue. Next, organizations must devise concrete communication plans that address the needs of their employees.

Technology plays a critical role in taking these steps. Employee apps and intranets ensure that all employees have equal access to information. However, leaders must ensure that information remains clear, consistent, accessible, and open to feedback to build a satisfied and engaged workforce. Staffbase Mission Control helps communicators to plan, create, deliver, and understand the impact of employee communications.