As companies scramble to manage external relationships and dynamics, they are losing sight of their most crucial audience: their employees.
A new study conducted by the USC Annenberg School for Communication and Journalism in partnership with Staffbase uncovers a startling truth: 61% of employees who are considering leaving their jobs cite poor internal communication as a factor, with 26% naming it a major cause. Alarmingly, 49% of managers admit they don’t know their company’s goals, underscoring widespread communication breakdowns.
The Employee Communication Impact 2024 study, which surveyed over 1,000 employees and interviewed 20 chief communications officers from leading U.S. companies, exposes a critical disconnect: while organizations heavily invest in managing their reputations with customers, investors, and regulators, many fail to engage their workforce with the same urgency and strategy. This oversight is now contributing to talent retention challenges.
“Talent shortages, shifting employee expectations, and the rise of AI-driven communication tools are increasing the need for organizations to get serious about internal communication,” says Frank Wolf, co-founder and chief strategy officer of Staffbase. “Our study conducted with USC Annenberg highlights a critical need for organizations to rethink their approach to internal communication or risk losing valuable employees.”
Key findings from the report include the following.
- Effective communication retains talent. Approximately 69% of employees who are satisfied with internal communication plan to stay in their jobs over the next year, highlighting the critical role of communication in employee retention. Meanwhile, only 29% of employees report being “very satisfied” with the quality and frequency of company communications.
- Employee happiness is tied to communication. Workers who are happy with internal communication are 46% more likely to be happier at work. This highlights the critical connection between engagement, morale, and the bottom line in competitive talent.
- There is a lack of clarity on company goals. While often Gen Z employees say working for a company with a clear purpose is crucial, less than half (46%) understand their organization’s bigger picture. This gap affects employee satisfaction, as 64% of those who are happy in their roles are also very familiar with their company’s goals, objectives, and vision. Those most committed to the mission and goals of their company (67%) are more likely to say they are going to stay at their jobs than others (21%).
- Supervisors are key but often ineffective—or untrusted. Supervisors are the main channel for internal communication, yet just 49% of employees receiving messages from their supervisors are familiar with company goals. Even more concerning, just 56% of employees say they fully trust their managers.
The rise of remote work and the increasing adoption of AI underscore the urgency of embracing more personalized communication strategies. This means understanding the evolving dynamics of work to personalize communication that resonates with employees’ individual needs and preferences.
