Best Practice

Increasing employee engagement with effective internal communications

Internal communications are an important part of maintaining positive employee experiences. Clear, consistent, and inspiring messaging can motivate employees and help them feel engaged.

Effective internal communications also provide points of connection for employees who don’t work at the company headquarters or report directly to a C-level executive. They can provide a sense of unity and camaraderie for an increasingly remote team of employees.

Studies have shown that engaged employees have a huge positive impact on a company, and effective internal communications is essential to making sure this is achieved. A cohesive, clear, and targeted communications strategy can motivate employees to recommend the employer’s products and services, solve emerging customer needs, and be more creative and productive. 

This blog looks at three additional benefits of increased employee engagement and delivering a great employee experience, and discusses how internal communications can support each goal.

Increased productivity and profitability

Boosting employee engagement results in improved productivity. For example, last year Gallup reported that companies with highly engaged employees were 21% more profitable than their less-engaged peers. Teams who score in the top 20% in engagement realize a 41% reduction in absenteeism, and 59% less turnover, all accounting for greater productivity.

Recent research by the IBM Smarter Workforce Institute has found that organizations that score in the top 25% quartile on employee experience report nearly three times the return on assets and double the return on sales compared to organizations in the bottom quartile.

Positive employee experience means employees having a greater connection, belonging in and feeling part of the organization, enjoying a sense of purpose, understanding why their work matters and is important to the organization and its success. And communication is key to achieving this.

The IBM research found employees with more positive experiences at work are much more likely to report significantly higher levels of discretionary effort. In fact, discretionary effort is almost twice more likely to be reported when employee experience is positive (95% compared to 55%).

Poppulo can help organizations increase employee productivity in several ways. 

  • Automating and streamlining tasks to reduce the design costs associated with creating newsletters and the time needed to update and synchronize mailing lists
  • Offering cross-channel analytics to improve management of the company intranet
  • Providing centralized governance in managing email distribution lists, including regular synchronization and automatic updates
  • Providing a drag-and-drop user interface and content compilation process, which simplifies and shortens the newsletter creation process by as much as several hours to three weeks

Newsletters and mailing lists offer many opportunities for automation to free up employee time, creating space for employees to tackle new projects that are potentially of much higher value.

By shifting employees from working on tasks that can be easily streamlined or automated, such as data updates and email launches, to more strategic revenue-related tasks, a company can assign employees to much more profitable work—in some cases, work that is five or six times more valuable than the employee’s base compensation.

Meeting customer needs

Employee engagement is associated with a customer-centric perspective. Studies show that engaged employees are four times more likely than disengaged employees to understand how to meet customer needs. Over three-quarters (78%) of engaged employees recommend their employer’s services or products, compared to only 13% of disengaged employees (MacLeod Report). Thus, increasing employee engagement will translate to better customer service.

Internal communications can be an excellent tool for increasing employee engagement. They can help employees better understand the corporate strategy and give them a sense of shared mission and goals. In addition, this strategy of being customer-centric works in tandem with the increased productivity mentioned earlier; as employees begin to have more time available in their workday, they have more opportunities to provide enhanced customer service and to find creative solutions to emerging customer issues.

Avoid costly employee turnover

The true cost of replacing employees is unclear, and estimates vary widely within an industry. Employee Benefit News determined that it costs on average $15,000 to replace an employee who has a $45,000 annual salary. Work Institute estimated that companies based in the United States will spend $600 billion replacing 42 million employees in 2018.

In addition, according to a study by Allied Van Lines, it takes an average of eight months for a new employee to become fully productive. It has been reported that US-based businesses with annual revenues above $2.5 billion bring in more than $529,000 in annual receipts per employee. Lengthy gaps in filling key roles and getting new employees onboarded can make it challenging, if not impossible, for businesses to meet corporate revenue goals. Thus, even a marginal change in the turnover rate can significantly benefit a company’s bottom line.

Of course, it’s well known and proven that engaged employees are less likely to leave the company. According to 2018 Gallup research, in high employee-turnover organizations, highly engaged business units achieve 24% less turnover. In low-turnover organizations, the gains are even more dramatic: Highly engaged business units achieve 59% less turnover. High-turnover organizations are those with more than 40% annualized turnover, and low-turnover organizations are those with 40% or lower annualized turnover.

The IBM research highlighted the impact employee experience has on turnover: “Employees with low Employee Experience Index scores are more than twice as likely to say they want to leave compared to those with more positive experiences. The difference is more than 20 percentage points (44% vs. 21%) and means that employees with positive experiences are 52% less likely to intend to leave their organizations,” the report said.

Poppulo can provide a targeted, cohesive, and compelling internal communications strategy to help you keep your employees engaged and invested in the company’s mission.

But to achieve employee and financial benefits discussed here, organizations must first build a culture, infrastructure, and technology environment that will maximize employee engagement, then develop internal communications that convey the company mission and key business goals.

Also crucial is that they employ analytics, design, communications workflows, and content changes to iteratively improve engagement over time. In all of these crucial endeavors, Poppulo is here to help. For more information on how Poppulo can add value to your organization, please see the Amalgam Insights report, Poppulo Enables Strategic and Tactical ROI for Employee Communications.

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