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Newsletter Archives
Effective Communication Proven to
Improve Financial Performance,
Employee Engagement, Productivity and
Retention
Watson Wyatt, the
prominent global consulting firm, recently confirmed that effective
communication directly improves financial performance, employee
engagement, productivity and retention. Digital signage, shown to be an
effective communications tool in virtually any environment, aids in this
process.
 Effective
Communication: A Leading Indicator of Financial Performance - 2005/2006
Communication ROI Study™
The 2005/2006 Watson
Wyatt Communication ROI Study™ revisits the relationship between an
organization’s communication practices and its business performance. The
goal was to identify which communication practices have the highest
return. The survey questionnaire asked respondents to rate their
organization’s overall effectiveness in communication along a number of
dimensions, and multiple industries across Canada and the U.S. are
represented.
Executive Summary
Effective communication is the lifeblood of a successful organization.
It reinforces the organization’s vision, connects employees to the
business, fosters process improvement, facilitates change and drives
business results by changing employee behavior. No matter how you look
at it, communication is an important part of the business landscape and
cannot be taken for granted.
The
2003/2004 Watson Wyatt Communication ROI Study™ demonstrated the
correlation between communication effectiveness, organizational turnover
and financial performance. The 2005/2006 study confirms our earlier
study findings and goes a step further, by showing that effective
communication is a leading indicator of an organization’s financial
performance.
KEY FINDINGS
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Companies that communicate effectively have a 19.4
percent higher market premium than companies that do not.
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Shareholder returns for organizations with the most
effective communication were over 57 percent higher over the last
five years (2000-2004) than were returns for firms with less
effective communication.
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The 2005/2006 study found evidence that communication
effectiveness is a leading indicator of financial performance.
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Firms that communicate effectively are 4.5 times more
likely to report high levels of employee engagement versus firms
that communicate less effectively.
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Companies that are highly effective communicators are
20 percent more likely to report lower turnover rates than their
peers.
Other Survey Findings
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Two-thirds of the firms with high levels of
communication effectiveness are asking their managers to take on a
greater share of the communication responsibility, but few are
giving them the tools and training to be successful.
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Global firms are not customizing their messages to
meet local needs or cultural sensitivities.
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On average, firms within the financial and retail
trade sectors rank among the most effective communicators. Health
care, basic materials, telecommunications and other service
companies rank among the least effective communicators.
The full study is
available for $45 online at www.wyattwatson.com:
http://www.watsonwyatt.com/research/resrender.asp?id=w-868&page=1
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