Employee Communications ~ 8 min

Why is communication important in business: 5 Ways to Boost Your Company’s Performance

Learn why is communication important in business, and discover 5 of the easiest ways to enhance it at your company!
Communication Team, Experts in Internal Communication, Sociabble
Communication Team Experts in Internal Communication

The importance of business communication cannot be overstated: without an effective flow of information, an organization simply can’t function. Learn how to boost your business communication and in doing so, enhance your company’s performance.

Without strong business communication, organizations lose alignment, miss out on engagement, become siloed, and then fracture, resulting in a whole bevvy of problems that can stem from a lack of coordination. Companies with strong business communication, on the other hand, function smoothly, have employees who are engaged and aligned, and are able to perform at peak levels, increasing profits and client satisfaction.

In this article, you’ll learn the true importance of business communication, and discover the easiest ways to enhance it at your company.

What is business communication in an organization?

To start with the obvious question, before the importance of business communication: What is business communication?

Well, business communication is the sharing of information within an entire organization, ranging from everyday conversations and written messages to formal presentations and internal communication updates.

It involves both interpersonal and group communication, allowing businesses to exchange information among employees, partners, and customers.

Interpersonal communication can take many forms, such as oral, written, non-verbal, and aural. We all use them when we interact with each other. But in organizations, communication codes can change, and it can be directly linked to the company culture in place.

However, four primary types of communication are traditionally identified within a business organization.

They include:

  • Downward communication: When information and directives flow from management to the lower levels of staff beneath them.
  • Upward communication: When feedback or ideas come from employees, and flow upward to management.
  • Lateral or peer-to-peer communication: When employees at similar hierarchical levels share information, within their own team or across departments.
  • External communications: The opposite of internal communication, which is designed only for employees within the company. This, on the other hand, is when employees share information about their company with the general public, including potential customers, through social media, press releases, or simply word-of-mouth.

type of business communication

Why is communication important in business?

So we’ve established what forms it can take. But why is communication so important in business? Obviously, it is essential for conveying important messages about strategy, customer service, and brand identity. Companies can develop a consistent image through communicating a tailored message that resonates with their target audience.

Furthermore, internal communication builds connections between employees and managers, boosting collaboration and teamwork within the company.

Good communication in the workplace is key to any successful business; it improves both the profit margin and reputation of the organization. When all team members understand the company’s mission, it helps to create an environment that is driven towards reaching its objectives.

By mastering effective communication techniques, businesses can reap countless rewards and help to increase overall success. The companies that perform best are those that are completely coordinated and aligned, and aware of how they stand among competitors and in the eyes of consumers and customers. And this all relies on good communication.

Makes sense? Good. Next, we’ll discuss some of the most important benefits of strong business communication in more detail, all of which are essential for achieving business goals. You may want to know more. So you can read this guide about employee communications examples.

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What are the 5 most important benefits of effective communication in business?

1. Improved Efficiency

It’s pretty straightforward: effective business communication will help ensure more efficient operations and a smoother workflow, enabling employees to be more productive. According to a study by Microsoft, businesses can achieve an average of 23% greater productivity and 9% higher profit margins when communication is effective. 

Business communication is key to efficient team collaboration and is essential for businesses to remain productive. Swift and effective communication can help an organization save time and money in the long run by reducing downtime due to miscommunication or a lack of understanding—which is why businesses need to prioritize their investments in tools that enable effortless business communication between employees.

Poor business communication, on the other hand, can lead to a loss of 8.9 hours per week of productive time for each employee. Add that all up, and that’s a lot of wasted hours!

2. Enhanced Collaboration

There’s no denying it. Effective communication allows teams to collaborate better and can lead to ideas that are more creative and innovative.

A good communication tool can prevent communication silos, which stand in the way of cross-company coordination and completely destroy alignment.

However, when top-down information is shared in a way that ensures all relevant parties are informed, and when lateral communication allows collaboration between teams, departments, or offices, then a company that could have been a misaligned mess instead functions smoothly and efficiently.

microsoft quote

3. Stronger Relationships

In business, relationships count, both within the company and with clients and consumers beyond. However, first and foremost, effective communication creates stronger interpersonal relationships and encourages respect among colleagues, which is essential for successful teamwork.

For example, building strong relationships in a hybrid workspace requires active effort from both office and remote workers, and also involves managers. It is important to make sure that remote employees feel included by engaging them in conversations and giving them equal opportunities for career advancement.

Also, encourage collaboration between teams by utilizing different communication channels such as emails, video calls or instant messaging apps.

business communication

4. Increased Engagement

Employees need to be involved with what’s going on around them to perform at their best. And with clear and concise oral and written communication, employees are more likely to feel engaged with the organization and inspired to contribute their best work.

For example, a Gallup survey found that employees who are engaged in meaningful conversation with their managers are 27% more satisfied with their jobs.

This is why it’s so important to encourage feedback through surveys, while also encouraging UGC (user generated content), where employees can react and engage with conversations, share opinions, and thus stimulate creativity.

5. Maintaining Expectations

Good communication best practices help people maintain expectations for job performance, ensuring everyone understands what is expected of them in their roles.

For example, it is important to unite all employees, from different countries and with different jobs, around a single company culture, and align everybody on the same values and goals

When all employees and departments understand their role within their company, their company’s role within its ecosystem, and the ecosystem’s place in the business world at large, everyone can set goals and work hard to achieve them.

How technology can improve business communication at work?

It’s an undeniable trend: in recent years, there has been a dramatic shift in the workplace towards a more hybrid and digital model. Companies have embraced remote working solutions that enable employees to stay connected with the team while working from home, or on the go.

This includes video conferencing that lets people collaborate virtually, task management systems that make it easy to assign and track progress on projects, cloud-based services to store data securely, instant messaging applications to communicate quickly, and even virtual reality solutions to hold “in person” meetings.

As technology continues to evolve, these tools are set to become even more powerful, helping companies keep their teams connected and productive no matter where they are.

employee communication quote

Having an employee communication platform to manage all of these new tools and ways of sharing information can truly bring your business communication to the next level. And Sociabble is a powerful technology designed to facilitate and optimize everything that’s been discussed in this article.

It provides features that enable businesses to engage with their employees through corporate social media and employee networks. It makes it easier for organizations to create content, share news and updates, ask for feedback, collaborate on projects, track activity, and measure performance. By leveraging the power of social media, Sociabble aims to increase employee engagement and foster a stronger sense of teamwork within the organization.

Moreover, Sociabble gives you the ability to engage all employees via its mobile app, including frontline workers who are not provided with professional email accounts or work stations. Thanks to audience segmentation, it’s easy to push the relevant content and information to the right people, so that employees only see information that has real added value for them.

content distribution business communication

Want to learn more about how Sociabble can help your company? We’ve already worked with industry leaders like Coca-Cola CCEP, Primark, L’Occitane en Provence, and Renault Group, and we’d love to discuss ways we can work with your organization to boost your own business communication.

Schedule your demo

Want to see Sociabble in action?

Our experts will answer your questions and guide you through a platform demo.