- Research by USC Annenberg & Staffbase Highlights the Critical Role of Internal Communication in Retention and Engagement
New York, NY, September 30, 2024 – As companies scramble to manage external relationships and dynamics, they are losing sight of their most crucial audience: their employees.
A new study conducted by the USC Annenberg School for Communication and Journalism in partnership with Staffbase uncovers a startling truth: 61% of employees who are considering leaving their jobs cite poor internal communication as a factor, with 26% naming it a major cause.
The Employee Communication Impact 2024 study, which surveyed over 1,000 employees and interviewed 20 Chief Communications Officers from leading U.S. companies exposes a critical disconnect: while organizations heavily invest in managing their reputations with customers, investors, and regulators, many fail to engage their workforce with the same urgency and strategy. This oversight is now contributing to talent retention challenges.
“Talent shortages, shifting employee expectations, and the rise of AI-driven communication tools are increasing the need for organizations to get serious about internal communication,” said Frank Wolf, Co-Founder and Chief Strategy Officer of Staffbase. “Our study conducted with USC Annenberg highlights a critical need for organizations to rethink their approach to internal communication or risk losing valuable employees.”
Key Takeaways:
- Effective communications retains talent: 69% of employees who are satisfied with internal communication plan to stay in their jobs over the next year, highlighting the critical role of communication in employee retention. Meanwhile, only 29% of employees report being “very satisfied” with the quality and frequency of company communications.
- Employee happiness is tied to communication: Workers who are satisfied with internal communication are 46% more likely than those who are dissatisfied to be very happy at work. This highlights the critical connection between engagement, morale, and the bottom line in competitive talent.
- Lack of clarity on company goals: While often Gen Zers say working for a company with a clear purpose is crucial, less than half of all employees working for large companies (46%) are familiar with their organization’s goals, objectives and vision. This gap affects employee satisfaction, as 64% of those who are ‘very happy’ in their roles are also ‘very familiar’ with their company’s goals, objectives, and vision. Those most committed to the mission and goals of the company (67%) are significantly more likely to say they are likely to stay at their jobs than others (21%).
- Supervisors are key but often ineffective—or untrusted: Supervisors are the main channel for internal communication, yet only 49% of employees receiving messages from their supervisors are familiar with company goals, objectives and vision. Even more concerning, just 56% of employees say they trust their line managers a great deal.
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 that resonates with employees’ individual needs and preferences.
“This study underlines the growing importance of internal communications as a business strategy,” said Fred Cook, Director of the USC Annenberg Center for Public Relations. “Maintaining a constructive dialogue with employees can improve morale, increase productivity, build culture and retain valuable employees.”
To learn more and download the report, please visit here.
About Staffbase
Staffbase is the fastest growing employee communications cloud, equipping many of the world’s leading companies with solutions to inspire every employee with motivating communication. With almost 3,000 customers, Staffbase helps organizations such as Adidas, Alaska Airlines, Audi, Blue Apron, DHL, and Whataburger to inspire their people to achieve great things together. Staffbase connects companies with their employees through a branded employee app, intranet, email, SMS, digital signage, and Microsoft 365 integrations, all of which can be managed through a single platform. In 2023, Staffbase was named a leader in the 2023 Gartner® Magic Quadrant™ for Intranet Packaged Solutions. Staffbase has also received the 2024 Choice Award for Intranet and Employee Experience Platforms from ClearBox. Headquartered in Chemnitz, Germany, Staffbase has offices worldwide, including New York City, London, Berlin, Sydney, and Vancouver. Please visit www.staffbase.com for more information.
About the USC Center for Public Relations
Based at the USC Annenberg School for Communication and Journalism, the USC Center for Public Relations (CPR) connects corporations, agencies, academics and students to define the future of our industry and to develop those who will shape it. Under the direction of longtime Golin agency leader and current USC Annenberg professor Fred Cook, CPR conducts and publishes research reports forecasting the future of communication and forward-looking, thought-provoking content authored by our board of advisers, staff and USC colleagues. Signature initiatives include the Global Communication Report, USC Annenberg’s Kenneth Owler Smith Symposium, the USC Relevance Report, and the Lead On! leadership forum for women in communication. Follow the Center for PR on social media (@USCCenterforPR, #PRFUTURE).
Media contact
Andrea Holland
andrea.holland@staffbase.com