How poor communication can push employees out

A growing communication disconnect is threatening employee retention, according to a recent study.

The findings from the USC Annenberg School for Communication and Journalism in partnership with Staffbase could be instructive to an industry where attracting and retaining talent are ongoing challenges.

The Employee Communication Impact 2024 report reveals that 61 per cent of employees considering leaving their jobs cite poor internal communication as a factor, with 26 per cent naming it a major cause. The findings highlight a major challenge for companies, where 49 per cent of managers admit they are unclear about their company’s goals, exacerbating the issue.

The study showed that while organizations focus heavily on managing relationships with external stakeholders, many overlook engaging their workforce effectively. This shortfall is now contributing to widespread talent retention issues, forcing businesses to rethink their communication strategies.

“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,” said 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.”

The study highlighted key findings that emphasize the importance of robust internal communication:

• Employee retention tied to communication: A strong link exists between effective communication and retention, with seven in 10 (69 per cent) of employees satisfied with internal communications planning to remain in their jobs over the next year. Yet only 29 per cent of employees report being “very satisfied” with their company’s communication quality and frequency.
• Employee satisfaction and engagement: Workers content with internal communication are 46 per cent more likely to report overall happiness at work. This connection highlights the role of engagement and morale in retaining top talent.
• Unclear company goals: Fewer than half of employees (46 per cent) understand their company’s overarching goals. Yet, two thirds (64 per cent) of workers who are “very happy” in their roles also feel well-versed in their company’s objectives and vision.

Supervisors, often tasked with delivering these messages, are seen as a weak link in this chain. Only 49 per cent of employees receiving communication from their supervisors feel familiar with company goals, and just 56 per cent fully trust their direct managers.

As remote work becomes more prevalent and AI tools continue to shape the workplace, the study emphasized that personalized communication strategies must address employees’ evolving needs.

“Maintaining a constructive dialogue with employees can improve morale, increase productivity, build culture and retain valuable employees,” said Fred Cook, director of the USC Annenberg Center for Public Relations.