Good Communication Drives Superior Financial Performance Essay
Good Communication Drives Superior Financial Performance
According to Watson Wyatt’s 2009-2010 Communication ROI Study, businesses that communicate with courage, innovation and discipline, particularly in tough economic times, are more successful at engaging employees and achieving desired business results. “Effective internal communication can keep employees engaged in the business and help companies retain key talent, provide consistent value to customers, and deliver superior financial performance to shareholders,” said the study, which included 328 organizations across the world.
Watson Wyatt’s newest communications study, like its other ones, found that businesses that communicate effectively with their employees are also the top financial performers. A key finding of the study was that companies that are highly effective communicators had 47 percent higher total return to shareholders over the last five years, compared to firms that are the least-effective communicators. According to the study, the best companies invest in helping leaders and managers communicate with their employees.
While the study points out that only three out of 10 organizations are training managers to deal openly with resistance to change, highly effective communicators are more than three times as likely to do this compared to the least-effective communicators. A survey developed by Accountemps®, a Robert Half Company, points out another reason why good communication equals good business. The survey found that better and more frequent communication with staff members is perhaps the best way to raise employee morale.
The survey was conducted by an independent research firm in 2008 and is based on interviews with 150 senior executives from the nation’s 1,000 largest companies. Nearly half of executives who participated in the survey said better communication is the best remedy for low morale. According to the survey, the absence of open and honest communication with staff tops the list of management missteps that can wear down employee morale.
University/College: University of California
Type of paper: Thesis/Dissertation Chapter
Date: 19 December 2016
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