Business Impacts of Poor Communication in the Office

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Excellent communication is key to the success of every company. A company that practices good communication tends to be more efficient and productive. On the other hand, poor communication can lead to the disorganization and miscommunication of employees. That, in turn, can affect customer service.

So what are the business impacts of poor communication in the workplace?

Unmet needs and expectations

townhall meeting

Lack of communication often leads to unmet expectations. Examples of this are when teams miss deadlines, when clients miss on meetings, and when people working on a project don’t know what their roles are. Without clearly setting expectations and goals, it’s close to impossible to know where to start and how to complete a project efficiently.

Dissatisfied clients

When teams miss deadlines or important meetings, clients tend to be stressed and frustrated. Failure to complete projects on time will not only cost your business money but also tarnish your reputation.

According to a survey conducted by the Computing Technology Industry Association, poor communication is the main reason that most IT projects fail. Nearly 28 percent of respondents said that bad communication is the number one cause of project failure, followed by insufficient resource planning and unrealistic deadlines.

Communication is an essential component of a project at every stage. Once project managers understand the project’s objectives, budget, and timeline, they need to relay it to everybody involved, especially the clients.

When the project calls for constant communication between you and your clients, it pays to invest in advanced comms systems like an IP-PBX phone system to ensure precise and seamless communication between both parties.

Reduced efficiency and productivity

According to the Holmes Report, communication barriers cost an average organization up to $62.4 million per year in lost productivity. These include actions or errors of omission by workers who misunderstood or were misinformed about business processes, company policies, job functions, or a combination of the three.

Conversely, the same report found that companies that have leaders who are effective communicators had up to 47 percent higher total returns to shareholders than companies with leaders who are ineffective communicators. That demonstrates the financial reward for leaders who communicate well to their employees and the problems that arise when they don’t.

High employee turnover

Poor communication in the workplace affects employee morale as well. Poor communication can cause increased misunderstandings, as well as less empowerment and accountability. That, in turn, leads to decreased motivation. Employees can lose passion or enthusiasm, which sometimes leads them to question the importance of their work.

According to a study by Watson Wyatt, companies that have effective communication systems are 50 percent more likely to achieve lower employee turnover rates compared to those that don’t have them.

Now, what you can do is to give your employees a platform on which they can communicate, share ideas, and build better relationships. Employees in companies with excellent internal communication processes are happier and more motivated. They find going to work more fulfilling and thus are more unlikely to walk away.

Communication is vital to the success of your business. When you establish reliable communication with your employees, they work harder in ways that drive results, helping your business reach its full potential.

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