In a field like ours, Public Relations, where we are often called upon for our strategic counsel on a variety of topics, one of the most overlooked is how a company is communicating internally with it’s own employees.

Since 2003/2004 the HR consultancy firm, Watson Wyatt has released its Communication ROI Study™ that examines the relationship between an organization’s employee communication practices and its business performance. Each year the results are clear. Strong internal communications translates into less organizational turnover and strong financial performance. After considering this survey, it is clear that a strong internal communications program is essential for any business to reach its full financial performance potential.

According to the 2007/2008 study, which surveyed over 6 million employees worldwide, companies that made significant improvements to internal communications over the past five years (2002-2006) were associated with a 15.7% increase in market value.

For organizations without a strong internal communications program, now is the time to develop one. Poor internal communications can harm your business performance, and failure to get everyone on the same page can lead an organization to lose its most valuable asset – the alignment and understanding of its business goals and objectives of its employees.

At TVG, we recognize the importance of an internal communications process that not only talks to employees, but also listens to them, keeps them informed and is open to their feedback. Every year we run internal and external communications audits for numerous clients in order to help them assess their current system and recommend best practices for the future. Results and feedback from these clients are consistently positive. They are now equipped to understand how their employees see their business and their role, and how the outside world sees them. By having this information, they can more efficiently run their businesses and contribute to their bottom line. In a recession or an economic downturn, this connection with your employees becomes all the more important in order to maintain a competitive advantage.

Contact us at tvg@vandivergroup.com or send comments to blog@vandivergroup.com.