As seen in Forbes
Internal communications is undergoing a transformation into a dynamic, strategic asset that can redefine a company’s culture, strengthen brands and boost revenue. This transformation is especially evident in the tech industry, where companies are eschewing conventional memos and meetings for more engaging, modern solutions. The focus instead is on building performance-driven, engaged, happy company cultures and employees.
I have worked with CMOs for more than 30 years to help them rethink internal communications. Recently, I’ve found myself supporting CMOs as they fight to get the internal communications budget needed—CEOs and CFOs often question the return on investment (ROI) and assume human resources will handle it. But when the C-suite doesn’t acknowledge the power of this function and the necessary collaboration between departments, it can be the death knell for company culture and advancement.
As Simon Sinek has stated, “When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.” This highlights the link between communications and employee engagement. Watson Wyatt Research has repeatedly shown that companies with effective communications practices have 47% higher total returns to shareholders.
Measuring the ROI for internal communications can be challenging, as its impacts are often indirect and long term. However, a CEO can evaluate internal communications investments’ effectiveness and financial return in a number of ways:
Employee engagement scores and culture assessments: Regularly surveying employees can reveal their connection to the company’s mission and values, which can reflect effective internal communications. Increases in engagement scores can correlate with higher productivity and financial results, which is often where internal communications reviews start and stop in many companies.
Turnover and retention rates: A decrease in turnover rates can indicate that internal communications strategies make employees feel informed, valued and integrated into the company culture. Lower turnover can mean significant cost savings on recruiting, hiring and training new employees.
Productivity metrics: Productivity levels can be measured before and after implementing new internal communications. Increased productivity usually translates into better financial outcomes.
Usage statistics: Analyzing data from the use of intranets, newsletters, apps or social platforms can provide insights into how well employees receive and engage with internal messages. I once worked with a company shocked by site managers quitting—if they had watched the data, they would have seen the departures coming. The company distributed a must-read weekly report that went out to managers with specials, updates to be digested weekly and a manager call. The open rate from managers who ultimately departed was 0%. In parallel, employee satisfaction scores from those who reported to the managers who quit were plummeting week after week. The lack of accountability between HR and management was a major miss. Now, the management team has a process for analyzing such data weekly.
Quality of employee contributions: Evaluating the quality and innovativeness of employee suggestions and feedback can indicate a well-informed and motivated workforce, often a direct result of effective internal communications.
Employee advocacy: Measuring how often employees share positive messages about the company on social media or through word of mouth can be a powerful indicator of their alignment with and belief in the company, a direct outcome of successful internal communications.
Customer satisfaction scores: Because engaged employees often provide better customer service, improvements in customer satisfaction can be linked to more effective internal communications.
Speed of change implementation: Measuring how quickly and effectively a company can implement change can indicate how well internal communications strategies function, leading to quicker realization of associated revenue benefits.
Benchmarking against peers: Comparing your company’s performance on the above metrics against industry benchmarks can provide a relative measure of the effectiveness of your internal communications strategy.
Moving Beyond Basic Internal Comms To Hit Revenue Goals
Tech companies are leading the charge by replacing the standard memo and all-hands meetings with new approaches. A favorite example is the specific use of internal podcasts designed to keep sales teams, often dispersed across the country, connected and informed. Topics are relevant, engaging and inspiring, transforming sales training from a moment in time into a continuous investment in team development.
A well-curated internal podcast can cover critical topics for sales, such as new product developments or feature launches; strategies for overcoming sales objections; customer feedback; insights from the competitive landscape; celebrating wins; updated pricing guidance and more. Disparate sales teams who frequently travel would also benefit from internal podcast episodes focused on motivation and driving collaboration with their peers. Companies can leverage shorter podcast episodes to share tips for shaking off a bad sales week; examples of cross-team collaborations that resulted in wins; or even surprise guests who deliver inspirational sales expertise or new ways of thinking.
Audience-Centric Communications
Whether it’s an internal communications strategy for an entire company or a specific group or department, understanding the audience is key—considering their schedules and how they best absorb helpful, applicable, motivating and meaningful information. This tailored approach ensures that internal communications are not just heard but also acted upon.
Companies like Salesforce and Slack have demonstrated the value of engaging employees through their own platforms, increasing innovation, productivity and revenue growth. Google’s collaboration tools have been pivotal in fostering innovation and maintaining high productivity levels, contributing to financial success. But it’s not the tool that dictates the success; it’s the engagement with employees to really know when and how they receive information paired with a thoughtful, consistent communications plan that sets the foundation for success.
By adopting modern communications tools and customizing strategies to meet the needs of their workforce, companies can transform their internal communications into a strategic asset that drives brand strength and revenue. This innovative approach to employee engagement not only amplifies the company’s brand presence but also solidifies its market position.
