Internal Communications in a sentence:
If you can't convince your employees of your value offering, how on earth do you expect to convince the customers who has your competition to consider on top of everything?

The ethical thing turns out to be the most profitable. Valuing employee well-being, engagement and enthusiastic input is not only ethically rewarding, it can be financially beneficial also.

In today’s unforgiving business landscape, global organizations face ruthless competition, taxing regulatory challenges, and ever-evolving pressures to re-innovate. If they are to survive, let alone thrive in this environment, organizations have come to recognize the importance of internal communications in maintain a competitive edge.

But how? And why?

Including internal communications in corporate strategy is not a shift of focus from external factors towards employee engagement. It is not even a broadening and diluting of organizational focus to include employees as well as customers in corporate strategy. Instead, it is a shift of mindset by which the employee is treated as a valued customer whom organizations need to positively influence, and to get on their side. Besides, if you can’t convince your employees of your value offering, how on earth do you expect to convince the customer?

In this article, I attempt to make a case as to how effective internal communications can play a determining role in fostering employee engagement, driving overall corporate success, and boosting stock value.

The Often-Neglected Importance of Internal Communications

Internal communications are anything that involve the processes, tools, and strategies used to share information for the purpose of aligning employees with a company’s goals and values. This includes internally communicating organizational change in a way that is accurate and meaningful.

When performed effectively within a global organization, internal communications hold the potential to maximize employee engagement, while positioning the organization as an employer of choice. This is only made possible when leadership understands that employees spent a considerable time of their lives in the company. It is therefore the leaders’ moral obligation to find ways to help employees identify with the company, and provide them with a sense of ownership in it. This empowers employees to be more satisfied, to see meaning in their labor, and to want to identify with the organization’s story.

This strategy turns employees into the organization’s ambassadors. There’s no better sales person than an enthusiastic employee, as long as they know how to communicate and articulate the organization’s message, values, vision and story. This adds up to brand recognition and brand value, which translates into stock value.

The channels of internal communications include internal newsletters, employee digital platforms, training presentations, employee magazines, activities, etc. Regardless of the channel of internal communications, the main goal is effectively communicating brand message, vision and story.

It is vital to inform employees about what we do and why. The “why” element is something bigger than the sum of everyone in the organization, because it is a positive idea and ideal. With such powerful concepts behind the brand story, it becomes easier to mold a group identity, which turns into meaningful drive and motivation for every single employee.

Benefits of Effective Employee Communications

1. Enhanced Employee Engagement

Employees incentivized to be engaged in the workplace are more likely to be productive, innovative, and loyal. Being on the same page with employees ensures that they are well-informed, and that they feel valued, because they are included. It proves to them that their leadership has a clear understanding of their role within the organization. Engaged employees are more likely to willingly go the extra mile, and such employee drive is a valuable asset when it comes to innovation, efficiency and effectiveness.

2. Employee Satisfaction and Retention

Satisfied employees who identify with their workplace “tribe” are more likely to be energetic and healthy, and less likely to waste time and focus on looking for alternative employment. This also means better employee retention, which is a money saver, especially in today’s landscape of expertise shortages.

3. Top Talent

A positive corporate culture fosters teamwork, collaboration, and a shared commitment to the company’s mission and values. Strong internal communications help create and maintain such a culture, which, in turn, attracts scarce top talent.

4. Better Decision Making

Clear, transparent communication allows people on all levels of an organization to contribute ideas, and share important feedback without inhibition. This inclusive approach to decision making leads to well-informed choices, which are essential for long-term corporate success.

5. Alignment with Corporate Strategy

Internal communications ensure that employees understand the organization’s strategic goals. This guides them to work in harmony toward achieving them. Seeing eye to eye aligns everyone within the organization with regards to the “complete picture”, making sure that each and every task is consistent with organizational strategy. This in turn reduces wasteful activities, while ensuring that individual projects are compatible with each other. Such congruence on a grand scale contributes to growth and profitability.

6. Risk Mitigation

Open channels of communication help identify potential issues and risks early on. When employees feel valued enough to be engaged with, they feel empowered to engage back without fear of perhaps “saying the wrong thing”. This maximizes the probability of employees communicating problems that only they can detect from their unique vantage point. Timely identification and resolution of problems protects an organization’s reputation, and therefore, financial health.

How Internal Communications Impact Stock Value

We’ve discussed the positive impact of internal communications on an organization’s productivity. But how does that directly impact stock value? Here are a few ways:

1. Productivity

Assuming that internal communications are effective enough to engage employees, the boosted productivity inherent in a pool of motivated employees contributes to increased returns and, consequently, higher stock demand.

2. Investors Perspective

Investors are more likely to invest in companies with strong internal communications, because such organizations are considered by the investment world as less risky, and more likely to achieve sustainable growth. If an organization’s leadership has the intuition to recognize the value of internal communications, then it is more likely to possess what it takes to achieve lasting success.

3. Positive Brand Image

A corporation known for its open, transparent internal communications is likely to have a positive brand image and recognition. This is due to the implied corporate ethos associated with internal communications. A strong brand attracts investors, customers, and partners, all of which enhance stock value.

4. Long-Term Sustainability

Companies that commit to the implementation of internal communications are better positioned to adapt to ever-evolving market conditions, economic shifts, and internal changes. This adaptability enhances an organization’s long-term sustainability, a factor highly regarded by investors.

How to Implement Effective Internal Communications

To realize the potential benefits of internal communications on stock value, organizations are called to consider the following strategies:

1. Develop a Clear Communication Strategy

Establish a comprehensive internal communication strategy that aligns with the company’s objectives and values. Ensure that all employees understand the strategy and their role in its execution. Make it fun, interesting, useful, and rewarding. Treat employees like customers who want “to be sold”.

2. Leverage Technology

Invest in modern communication tools and platforms to facilitate seamless information sharing, collaboration, and feedback gathering among employees, regardless of their geographical location or position. Technology is meant to make things easier, not more complicated.

3. Training and Development

Develop appropriate training material and resources for employees and managers to improve their communication skills, fostering a culture of effective communication throughout the organization. Such training and development efforts should include employee input and suggestions so as to include employees’ voices into the brand story. This in turn gives employees ownership over the organization, and therefore, a sense of empowerment and satisfaction. These elements are all the incentive required to drive engagement.

4. Transparency and Accountability

Make an effort to be transparent about corporate decisions, successes, and challenges. Hold leaders and managers accountable for effective communication within their teams. Communicate the organization’s efforts to deliver transparency to employees, this way demonstrating how valued they are.

5. Feedback Mechanisms

Establish channels for employees to provide feedback and suggestions, and act on this feedback promptly. Show that their voices are heard and valued, and that no one is penalized for well-intended feedback, no matter how dire it is.

In a Nutshell

Effective internal communications are a valuable asset for global organizations that recognize the importance of employee engagement in increasing stock value. By enhancing employee engagement and empowerment through effective internal communications, organizations are enabled to foster a positive corporate culture, and to align employees with strategic goals. Internal communications therefore drive productivity, attract investors, and ultimately contribute to the long-term success of an organization.

To remain competitive in today’s global marketplace, it is essential for organizations to recognize the pivotal role internal communications play in overall corporate performance and stock value growth.