7 Benefits Of Effective Communication In An Organisation

Updated 5 August 2023

Workplace communication refers to all modes of conversations occurring at work that are about work. Companies prioritising effective communication are better prepared to handle challenges and conflicts at work. Knowing how to communicate effectively with your team members and other employees can help reduce miscommunication, improve job satisfaction and increase your productivity while contributing to the team's overall success. In this article, we describe the meaning of effective communication in an organisation, review its benefits, analyse its characteristics and share steps for improving workplace communication across teams.

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What Is Effective Communication In An Organisation?

Effective communication in an organisation is exchanging knowledge, ideas, opinions, thoughts and data so that the receiver understands the message clearly. Effective communication ensures that both the sender and the receiver feel satisfied after the discussion. Workplace communication occurs in different forms, including verbal and non-verbal, visual, written and oral. It can happen in person, over the phone, by email or over the internet.

Related: How The Communication Process Works (Example Included)

7 Benefits Of Effective Communication In The Workplace

Here are some of the benefits of effective communication in the workplace:

1. Better employee engagement

Employee engagement is a crucial metric that impacts employee productivity and satisfaction. Satisfied and engaged employees are likelier to remain on the job and contribute to the company's achievements. Better communication fosters a sense of ownership and belonging amongst employees, resulting in higher employee engagement. Here are a few ways effective communication improves employee engagement:

  • Improves day-to-day communication between employees, creating a more enjoyable and cohesive work environment

  • Fosters better relationships between junior and senior employees

  • Increases the likelihood of employees sharing their opinions, ideas and thoughts, helping to develop innovative and more efficient solutions

Related: Q&A: What Is Employee Engagement? (And How To Improve It)

2. Increased employee morale

Team members with low job satisfaction are likely to take more time off and can be less productive in the workplace. This negatively impacts the productivity of other employees. Effective communication between senior management and team members can help employees understand their contribution to the team's overall success. This allows employees to take more pride in their work, which in turn, can improve workplace morale.

3. Enhanced productivity

Effective communication helps ensure that clear information is readily available to all team members, which helps them better comprehend their roles and perform their duties. Engaged team members with a clear understanding of their duties and responsibilities are likely to be more productive in the workplace. When team members do not fully comprehend their roles or have limited resources to perform their duties, they can get confused and frustrated, leading to poor job performance. Better workplace communication helps save time and resources, as employees get more work done, which improves the organisation's overall productivity.

4. Smoother client relationships

The benefits of effective workplace communication extend beyond the employees. It impacts client relationships as employees across levels interact with clients during different project phases. It can also help improve customer loyalty as customers appreciate open and transparent communication and prefer companies that value their relationship and keep them updated through all project phases. Companies that prioritise effective workplace communication are more likely to nurture stronger client relationships, helping them retain clients in the long term.

Related: How To Overcome Communication Barriers: Benefits And Tips

5. Fewer workplace conflicts

Workplace conflicts are often a result of poor communication amongst team members. Inefficient communication can make employees misunderstand what others are saying, resulting in a toxic or hostile work environment. Building effective workplace communication can help prevent misunderstandings and create a more cohesive and friendly workplace culture. For example, if a manager assigns one team member 15 tickets while assigning 25 tickets to another team member, it might feel unfair to the employee with more tickets. If the manager clarifies the reasoning behind the ticket distribution, there are lesser chances for conflicts or workplace tension.

Related: What Is Conflict Resolution? Using This Practice At Work

6. Increased job satisfaction and loyalty

Effective workplace communication increases employee satisfaction and adds value to the organisation by reducing employee turnover. Employees who feel valued and trusted in the workplace are likely to remain in the same job for years. This is a huge benefit to companies as they do not spend additional resources and time hiring, training and onboarding new employees frequently. In the long term, experienced employees are an asset to an organisation as they have the experience and expertise to solve critical problems, increase innovation and lead junior team members.

Related: What Is Employee Retention? (And How To Increase It)

7. Increased collaboration and teamwork

Effective communication nurtures stronger team bonds. When team managers and leaders promote a culture of effective communication, including communication that is direct, clear, timely and kind, it strengthens workplace collaboration and builds stronger peer relationships. This encourages employees to work as a cohesive team, contributing to the overall goals and objectives of the organisation.

Related: 12 Communication Benefits For The Workplace (Plus Tips)

Characteristics Of Effective Workplace Communication

Effective communication meets the following criteria:

  • Clarity: When a message is clear, the recipient is more likely to understand and act on it. Use precise language to convey a clear message.

  • Conciseness: Keep the message quick, direct and as short as possible. This helps to save the reader time and avoid confusion.

  • Correctness: Grammatical errors, spelling mistakes, typos and improper structure affect the effectiveness and credibility of a message. You can use spelling and grammar-checking tools to avoid mistakes.

  • Completeness: Provide complete information to avoid unnecessary guesswork for readers.

  • Coherence: Keep the message relevant to the point of discussion. When discussing several points, you can divide them into different messages.

  • Consideration: Before delivering a message, consider its effects on the reader or listener. Maintaining a polite and professional tone helps nurture strong workplace relationships while avoiding conflicts.

  • Courtesy: Courteous messages make team members feel respected and more likely to take the initiative to act on it.

  • Concreteness: Tangible messages with facts enhances your credibility and help your audience understand without misunderstanding.

  • Consistency: Effective workplace communication is consistent across all teams and employees. A company style guide can help you create consistent internal and external communications.

Related: 10 Ways To Improve Your English Communication Skills

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How To Communicate Effectively In The Workplace

Communication is a skill that improves with practise. Here are a few helpful strategies to improve your workplace communication skills:

1. Use the right communication tools and channels

Effective communication requires you to choose the proper communication channels and tools. For example, if it is a quick reminder, you can send the message on the company's internal chat platform. If it is a detailed discussion of an upcoming client project, scheduling a face-to-face team meeting might be the better choice, as it provides the opportunity to brainstorm and determine the best solutions.

Related: What Are Channels Of Communication? (Importance And Types)

2. Adapt your communication to suit the audience

Knowing your audience and customising your message is key to effective workplace communication. Understanding who you are communicating with can help you adapt the message, tone and delivery to suit them. For example, when speaking with junior interns at work, you can avoid complicated technical terms and internally-used abbreviations that they might not be familiar with to ensure they understand your message clearly and without any confusion.

3. Instill the art of active listening

Active listening is the practice of listening keenly without any distractions when communicating with others. It helps avoid conflicts and misunderstandings, as you clearly understand what the other person is saying. Here are a few techniques to build active listening:

  • Make eye contact with the speaker

  • Avoid interruptions and wait until the speaker finishes before you respond

  • Respond genuinely

  • Ask questions

  • Examine your body language

Related: Active Listening Skills: Definition And Examples

4. Organise team-building activities

Team-building activities can help team members learn more about their colleagues in a relaxed setting. This encourages collaboration and teamwork and greatly impacts overall productivity. As a team leader, you can organise collaborative activities like team lunches, icebreaker games, group fitness sessions or outdoor activities to facilitate team bonding and improve workplace communication.

Related: 11 Ways To Collaborate With Your Team (With Benefits)

5. Handle conflicts with diplomacy

Identifying potential conflicts early on helps you prevent a crisis later. For example, during a team meeting, if you notice that a team member has misunderstood a specific instruction, ensure that you talk to them about it as quickly as possible to avoid problems during the later stages of the project. When sharing feedback, focus on the problem or issue and avoid personal criticism of individuals.

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