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Top Reasons Every Company Needs Business Communication to Succeed

Asloob Alam

Management problems are not uncommon in large, multileveled organizations. In many cases, the root of the issue lies in the communication channels between employees, stakeholders, and management, which causes information to be lost or distorted. Poor communication hampers decision-making. It also creates conflict and silos within the company.

According to research, 86% of business executives and employees acknowledge workplace failures to be products of weak communication. That leads us to the question. How can industrial key players promote effective communication in business environments? This guide answers the question in different ways.

Introduction to Business Communication

We can’t fully comprehend the intricacies of this topic without addressing the question: What is business communication? In simple terms, business communication is the means of disseminating information within or between businesses. It entails distributing, receiving, and understanding decisions, feedback, ideas, data, opinions, and instructions between employees in a mutually beneficial manner.

Communication within an organization can be effective if there is cross-departmental interaction. As far as the company's objectives and values are concerned, all active members (managers and employees) should share the same goals. That way, the whole company works as a single unit to produce tremendous results.

Surprisingly, despite knowing the importance of business communication in today’s economic landscape, more than half of IC professionals fail to measure the outcome of implemented strategies. This is mainly because it is not treated as a valuable asset. Thus, there are chances of missing out on opportunities, trends, insights, and even threats. Other damaging consequences include:


  • Reduced customer satisfaction
  • Increased labour turnover
  • Low productivity


As such, the value business communication adds to organizational workflow can’t be overstated. Before delving into its benefits, let’s consider the types of business communication.

Business Communication Types

Now that we know what business communication is, the next step is to identify the varying forms it takes:


  • Internal upward
  • Internal downward
  • Internal lateral
  • External


Internal Upward

This type of communication occurs between higher management and lower management staff within an organization. As the name implies, it involves an upward information flow, in which lower-level employees send reports or requests to higher-ups. The main objective of this communication is to improve decision-making. This is achievable since top-level management effectively visualizes business operations at the front lines through the information given.

Internal Downward

Here, information sharing still occurs within the organization, but in the opposite direction. It occurs when instructions are communicated from upper to lower levels. A memo, notice, and email are examples of internal downward business communication tools. With these channels, employees can adjust their tasks accordingly and stay informed.

Internal Lateral

This business communication occurs among employees within an organization. It can be internal to one department or even among teams from different departments. For instance, if a group of product designers have a problem with a prototype, they can share their concerns with the engineering department. This way, information exchange leads to improved employee output, reduced costs, and time.


This communication involves the dissemination of information to customers, partners, and other external stakeholders. It aims at promoting a company’s values and strengthening collaboration. It’s also necessary because it establishes a relationship between stakeholders and company management.

Why Should You Consider Business Communication?

In today’s technological-driven economy, your business can’t be successful without a solid communication channel between all stakeholders. Some notable objectives of business communication include:

Zero Email Overload

Email fatigue can be crippling to any organization. Research has it that the average employee receives over 120 emails per day, from document distribution to status reports. This, coupled with the frequency of responses, can affect employee productivity. With over 25% of the work day expended on emails, it stands to reason that employees are unable to attend to core business issues.

To combat email overload, businesses must incorporate modern internal business communication tools such as Troop Messenger to facilitate information dissemination within an organization. This email-killing business communication messenger helps teams of an organisation exchange work conversations and receive requirements through this unified digital platform to facilitate information dissemination within an organization.

Increased Employee Engagement

A 2021 report shows that only 36% of employees are actively engaged in the workplace. This is a huge cost for companies that fail to notice the consequences, which include low productivity and high labour turnover.

Based on Ragan’s research, leadership communication and employee engagement are closely related. That explains the value of information exchange between management and employees. IC specialists play a crucial role in mentoring CEOs, HR managers, and other senior executives to improve engagement.

Enhanced Employee Productivity

Effective business communications account for better performance at work. This includes the fact that employees no longer need to worry about information overload. They receive laser-focused directives that point them faster to what’s required of them. Improved employee productivity translates to higher ROI for businesses. Companies can boost productivity by:


  • Engaging employees
  • Focusing on problem-solving
  • Facilitating innovation
  • Encouraging healthy disagreements
  • Sharing knowledge


Reduced Employee Turnover

Nothing costs companies more than a high turnover rate. It’s estimated that replacing employees costs six to nine months of their annual salaries. In truth, only those who are highly engaged and satisfied with their jobs remain in the workplace for long.

With more companies tapping into the millennial pool, engagement becomes paramount. Managers who foster an environment of transparency, trust, and respect within the workplace and also share information pertinent to their employees’ roles will more likely maintain fewer to no turnover rates.

Enhanced Inter-Departmental Communications

According to Queens University of Charlotte, 39% of employees feel that there is insufficient teamwork in their company. This makes it important to have streamlined internal communications in business to bridge the communication gap between departments. Effective communication increases trust and collaboration among teams, resulting in more creative ideas and strategies.

Absence of Communication Silos

While this can happen to any business, silos are more common in large organizations. With silos comes inefficiency, confusion, and misalignment. They affect efficiency and productivity as well. Implemented robust IC software solutions cut back on this problem by helping managers ensure that employees stay in touch with the relevant updates without risking information overload.

Better Customer Satisfaction and Retention

In the U.S. alone, poor customer service accounts for about $75 billion in losses. Often, this stems from a lack of effective communication. The need for transparency in business communication is to make sure that customers receive timely, accurate, and consistent information.

They should be able to receive a quick response to their queries. This helps businesses build credibility. For example, students who need professional writing services for their essays will appreciate a company that’s open and communicative.

According to BetterWritingServices, A review platform, such providers stand out in specific areas. One of them is the implementation of business communication strategies to build good relationships with customers. It’s a known fact that an employee’s attitude affects customer satisfaction. If the service provider is rude, abrupt, or disinterested, it can negatively affect the customer’s experience.

Amazing Company Culture

Business communication plays a significant role in building a strong company culture. This includes giving employees a voice and promoting teamwork. Such open-door policies instil an environment of trust and respect, which is crucial for productivity. Again, the IC team has a significant role to play.

Improved Communication with Remote Workers

With the advent of modern technology, remote workers have become more common. About 18% of the world's population works remotely. This has been attributed to the cost-effectiveness and convenience of working from home. It also requires changes to communication, management, and leadership strategies. This work environment presents difficulties such as time zone differences, language barriers, and poor communication channels. Effective business communication ensures that remote employees stay in touch with their colleagues, clients, and managers.


There's no doubt that business communication is vital to the success of a company. It’s not only a way to connect employees, stakeholders, and management. It also helps to boost productivity, reduce turnover, and build a strong company culture. With the business landscape constantly evolving, there’s never been a better to incorporate this element into your workflow. While it may seem like a tall order, the benefits of doing so are enormous.

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