How Giant Companies Communicate – Importance Of Business Communication


Organizations with a big workforce and several levels of management frequently struggle to successfully handle corporate communications. Therefore, there has to be effective and ongoing communication inside an organization, across organizations, and among society as a whole.

What Is Business Communication?

Business communications refer to the exchange of information between staff members inside and outside of an organization.

In order to achieve corporate goals and a better fit with the fundamental company values, management and employees must communicate effectively with one another. Its fundamental goals are to enhance organizational procedures, get rid of silos, notify the staff, and lower mistakes.

Every corporation needs effective business communication to succeed and develop. Business communication is usually goal-oriented, unlike daily communication.

However, statistics indicate that just 60% of internal communication specialists track internal communications.

All of the rules, core corporate values, regulations, and policies must be communicated to everyone inside and outside the organization for an enterprise corporation to run properly, which further signifies the Importance Of Business Communication.

What Are the Different Types of Business Communication?

There are 4 main types of business communications.

1. Internal upward communication

Internal upward business communication occurs when a subordinate speaks with a manager or someone higher up in the organizational structure. To truly understand the functioning of the organization, every leader should allow information to flow upwards.

Employees typically transmit surveys, comments, forms, and reports to their supervisors or team leaders as part of internal upward communications.

2. Internal downward communication

A superior communicates internally with one or more of their subordinates. This sort of communication might take the shape of a memo, a spoken command, or a notification.

Leaders should be professional and clear in their communications with their staff. A notification outlining a new firm operating procedure, such as safety standards and new rules, is an example of this kind of communication.

3. Internal lateral communication

Internal lateral business communication takes occurs at work between coworkers. Employee communication is possible in a variety of methods nowadays, including chat, messaging, email, and various software solutions.

This sort of corporate communication occurs more frequently than other types and might be between or within departments. Additionally, open communication among staff members is essential for boosting productivity and employee engagement.

4. External communication

Any communication between a business and an outside party, such as a client, potential client, vendor, or partner, is referred to as external business communication.

External business communications occur less often than all other sorts of internal company interactions.

10 Reasons to Signify the Importance of Business Communication

Here are the top 11 reasons to show the importance of business communications for every company’s success through free business communication textbooks:

1. Improves employee engagement

According to Ragan’s study on employee engagement, the most important internal communication aspect statistically corresponds to how engaged people are in leadership communication. Teams dedicated to internal communication play a vital part in assisting, advising, and reminding executives of the value of communication.

2. Eliminates email overload

Email is frequently used in businesses for various purposes, including information requests, employee communications, feedback, status updates, task assignments, customer and supplier communications, meeting invitations, document distribution, HR notices about various team activities, benefits, and sometimes birthday wishes.

According to Radicati, various email-related chores take up 25% of the typical employee’s workday.

Only a tiny portion of the emails that arrive in our inboxes, though, need our immediate attention. By sender or subject, we eliminate crucial emails. Additionally, a lot of the emails we get have no bearing on us at all.

Email overload has been solved by internal company communications that leverage contemporary solutions for staff engagement and communications.

3. Eliminates communication silos

Information silos are frequently caused by an abundance of irrelevant content. Meaning that crucial information for a worker might simply be lost. Why does information disappear in your organization?

To overcome this difficulty, effective internal company communications and the utilization of the appropriate communication channels are essential.

4. Increases employee productivity

4 out of 5 workers think good internal corporate communication improves their ability to do their jobs.

Employees frequently spend too much time seeking the information they need to execute their jobs due to information overload.

Additionally, it takes a typical worker 2.5 hours to find the information they need. Each month, this results in an entire week being wasted trying to locate something that ought to be easy to discover.

5. Improves inter-departmental communications

It is exceedingly challenging to maintain efficient interdepartmental interactions inside businesses without a suitable communication plan.

Employee productivity depends on their ability to collaborate and communicate effectively.

6. Improves communication with remote workers

The future of work is remote teams. More than 40% of the working population worldwide is predicted to be mobile by 2024, according to the Global Mobile Workforce Forecast Update. Furthermore, the percentages might soon approach 75% in industrialized nations like the US.

This indicates that a fresh approach to management, leadership, and communication is needed. The difficulties in communication faced by distant teams include coordinating across time zones, information silos, and overcoming linguistic and cultural obstacles. A team’s ability to feel cohesive is also frequently hampered by distance.

Improved internal company communications may significantly enhance the sense of collaboration and teamwork among remote workers.

7. Reduces employee turnover

Companies with satisfied and more engaged workers see considerably lower turnover rates. Employers must make sure to keep their staff members up to date on matters that are pertinent to their occupations in order to draw in and retain Millennials to the workforce for active and robust services.

On the other hand, excessive amounts of irrelevant information can cause stress, disengagement, and dissatisfaction, which has a negative impact on staff retention.

8. Improves knowledge-sharing efforts

The enhancement of information-sharing best practices is one of the key objectives that businesses are attempting to accomplish through internal communications spending.

Employers must make it simple for workers to share information inside their businesses in a world where people are continuously learning and developing new skills.

Knowledge sharing and organizational knowledge suffer from a lack of a well-defined internal corporate communications plan.

9. Increases employee advocacy

Employers are far more successful in converting their staff members into brand ambassadors when they understand how to engage with them successfully.

Brand ambassadorship is easier to attain than many businesses think. In reality, content professionals would like to take part in brand ambassador initiatives.

10. Improves customer satisfaction and retention

Customer satisfaction also improves with greater corporate communication. When it comes to customer service and happiness, bad communication inside a company leads to two outcomes.

First, staff members in customer-facing positions won’t have the knowledge they require. Customers will feel the poor employee morale and have a bad experience, which is the second consequence.

A rise in customer satisfaction leads to an increase in revenue, according to one research, which also indicated that staff mood had a substantial influence on that outcome.

The Rise of Mobile Business Communications

By 2025, millennials are expected to make up 75% of the workforce, up from their current 50% global employment share.

We all know that Gen Z and millennial employees are tech-savvy and mobile-focused. Therefore, you must adapt your communication strategies to these generations’ habits and mobile-first preferences if you want them to interact with the substance of your business communications. Want to explore and know more about the importance of business communication and its significance, look out for online platforms and free textbooks that are accessible online.



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