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Why Employee Communication Tools Are Vital To Business Success

The modern workplace is steadily evolving. With Millennials set to comprise a whopping 75% of the global workforce by 2025, effective employee communication will become more and more essential. Millennials work differently, communicate differently, and value different things than previous generations. Studies show that Millennials not only perform well in teams but also prefer open and frequent communication with their managers and are at ease with communication technologies. A Microsoft survey found that 93% of Millennials cited modern technology as one of the most important aspects of a workplace—outranking other perks like free snacks or an attractive office space. Specifically, 81% said they wanted technology that would “help [them] connect more efficiently with [their] colleagues.” Despite this, many companies struggle to keep their teams engaged and informed. That’s why employee communication tools have become more vital than ever.

Employee communication tools boost productivity

IDC data shows that employees spend about 2.5 hours per day, or roughly 30% of the workday, searching for information. Assuming an average yearly salary of $80,000, the inability to find and retrieve important documents costs an organization employing 1000 workers about $25 million per year. A company using employee communication tools can expect to reduce time wasted on these activities by at least 15%, increasing revenue per employee by about 5%.

Employee communication tools enhance transparency

Effective employee communication tools can help increase the advantages of informal communication. It will slow down the rumor mill through frequent and immediate conversations and will help employees to interpret information as well as instructions. Employees value transparency in their interactions with different levels of management—even naming it a top factor in determining their satisfaction in the workplace. Providing both a rumor-free environment and transparency is critical for a generation of employees who require it.

Employee communication tools increase engagement and retention

A Gallup study revealed that only 34% of U.S. workers said that they were committed to their job. The same research showed that the turnover rate for disengaged employees is higher than engaged employees. Mobile apps reach employees—especially Millennials— through a medium that is central to their everyday communication habits. Research shows that by capitalizing on the reach of mobile devices and creating relevant experiences, mobile employee apps dramatically boost employee engagement. Companies using an employee app drove engagement levels to above 75%. As a result, the turnover risk dropped significantly, with companies saving anywhere from 25% to 65% in turnover costs.

Organizations of all sizes realize that communication in the workplace needs to be the number one priority. Employee engagement is a continuous journey. Communication isn’t just an “event” but an ongoing process. When employees see you making the extra effort to communicate openly and honestly, they will reciprocate. By taking decisive action and investing in powerful employee communication tools, you will ultimately benefit from better business results.

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