The Importance of Communication in Business

Home $ BUSINESS $ The Importance of Communication in Business



There has been considerable research and literature published on the importance of communication in the world of business. At the forefront of business success lies effective communication. If a company with multiple tiers and professionals in different roles is unable to work effectively, it can have a dire impact on productivity and performance as a whole.

Effective business communication is necessary for running a successful business, and for driving critical business processes throughout the organization. Without effective communication, a business will simply not be able to perform well enough.

Why Is Business Communication Essential?

Businesses are no longer confined to geographical boundaries. There are employees who work from all parts of the globe. More importantly, because of the dynamism in modern business, effective business communication is necessary to ensure that all parties and employees are on the same page and understand their job.

What’s the point of meetings when a business is not able to perform properly? Even though project timelines, budgets, and procedures are primarily passed down from the top, they must be communicated effectively to all employees and departments before they can be implemented. According to one study, almost 97% of employees believe that effective communication is critical for performing everyday tasks smoothly.

More importantly, effective communication can help in mitigating delays that usually occur due to miscommunication. Businesses are able to fulfill their objectives and meet their targets in a better manner. Statistically, effective communication is also known to improve productivity in the workplace.

What’s the Link Between Communication and Productivity?

Employee productivity simply focuses on the amount of work that an employee is able to complete within a specific period of time. Some employees are more productive, and as a result, are able to complete more of their work within a smaller period of time. But if morale is low, the same employee will take considerably longer to finish the same job.

According to the same study, when businesses communicate effectively with their personnel and other stakeholders, productivity goes up by 25%. It’s easy to understand when you look at it from a direct angle. Put yourself in an employee’s shoes.

What if you are working and suddenly find out that another policy was rolled out over the past few days that you were not made aware of? Obviously, it is going to have a direct effect on your morale. However, if you were included in the process, it is going to improve your morale.

Impact on Income

Companies with more productive employees are automatically able to increase their operating income because employees work faster and better. According to the same study, a company with an engaged team of professionals is able to increase their operating income by almost 19% within a year. That’s because 95% of their employees are able to communicate effectively with each other.

Effective business communication is all about making sure that employees are able to quickly gain access to any new memo or announcement that is made by your upper management.

Understanding Business Communication

It is important to understand the concept of business communication and what it entails. Business communication is an umbrella term that focuses on the sharing and dissemination of information that can benefit the organization. This primarily means disseminating information in several forms, and sharing it on multiple devices and platforms.

Primarily, business communication can be broken down into two parts: the relay of information, and then there’s the feedback. Feedback is also equally important to ensure that the organization is able to succeed and get feedback from the individuals who are receiving the information.

The Main Forms of Communication

Primarily, there are three main forms of communication that are used in organizations of all sizes. These include verbal, written, and in person communication.

Written Communication

Written communication is arguably the most common form of communication in a business environment. This entails both digital and nondigital media, including information passed on printed memos, emails, and shared documents. Even information sent through messaging apps such as Slack or WhatsApp can be considered as a form of written communication.

Businesses across the globe are phasing out written communication on paper and are moving increasingly toward digitized forms of communication. That is primarily due to the environmental impact of the consumption of paper.

Verbal Communication

Then, you have verbal communication. Verbal communication primarily focuses on the transmitting or delivery of information orally, using a simple language. This can be done in a variety of formats including official announcements made by business managers, information delivered via interviews online, on Skype meetings, on phone calls, and other platforms.

Verbal communication is the cornerstone of business communication, primarily because employees talk to each other and share information regularly.

In Person

Another form of verbal communication, though one that does not include the use of electronic media, is in-person communication. In-person communication is when employees just sit together and talk to each other generally about different things.

Why Is Communication Necessary?

The importance of communication in business cannot be undermined due to several reasons. First of all, shareholders require honest and timely pieces of information about the company’s performance. They need access to financial statements and major decisions taken by the board of directors. The shareholders are entitled to receive important information and this is regulated by external authorities.

Similarly, the personnel within the company are responsible for receiving this information as it allows them to come up with strategies and implement the instructions given by the company’s upper management. Without effective communication in the workplace, it can be difficult for the personnel to implement the policies set by the company.

Similarly, communication is necessary for the clients and customers of the company. These are the people who are going to be buying the product, and if you do not communicate clearly with them, it is going to be difficult for you to maintain a positive image before them.

Communication in the Modern Age

Effective business communication in the modern age is essential for a variety of reasons. It is going to help your business grow and is going to ensure that you are able to maintain a positive image before your customers. It is necessary in the modern age where people are able to access information almost immediately using third-party platforms such as Twitter. Effective communication can help you succeed in a cut-throat industry.


Recent Posts