The True Value of Workplace Communication: A Business Case

Dana Corey  

It’s no exaggeration to say that communication is the lifeblood of any workplace. It influences how decisions are made, how people work together, and whether goals are met or missed. But while we all understand that communication matters, it’s not always clear just how much impact it really has, or how to quantify its value.

This opinion piece builds a case for why communication in the workplace should be viewed as a strategic priority - not a soft skill or afterthought. We'll look at the real-world consequences of poor communication, the business advantages of doing it well, and why effective communication should be embedded in every aspect of your organization’s culture.

Why Communication in the Workplace Matters More Than Ever

In the modern workplace’s hybrid environments, effective communication in the workplace isn’t just helpful - it’s essential. Whether teams are collaborating on a project, managing clients, or coordinating across time zones, clarity is what keeps things moving.

According to a 2023 report from Grammarly and The Harris Poll, poor communication costs U.S. businesses up to $1.2 trillion annually due to lost productivity, mistakes, and inefficiencies. That breaks down to an average of $12,506 per employee, per year (Grammarly Business Report).

Those are staggering numbers. But the upside is just as powerful: when communication flows well, it boosts productivity, strengthens teams, and ultimately improves your bottom line.

The Real Value of Effective Workplace Communication

1. Increased Productivity and Efficiency

Effective communication ensures that employees understand their tasks, deadlines, and responsibilities. When expectations are clear, people can spend less time clarifying and more time executing. According to McKinsey, teams that communicate effectively using digital tools can increase productivity by up to 25% (McKinsey Global Institute).

Misunderstandings, on the other hand, can derail entire projects. Emails go unanswered, tasks get duplicated, and critical updates fall through the cracks. Establishing clear methods of communication at work, such as defined project management tools and daily stand-ups, reduces this risk and helps teams stay aligned.

It’s not just about speed - it’s about accuracy. With well-structured communication processes, fewer resources are wasted, and employees can focus their energy on high-impact work. And with the growing complexity of global teams and hybrid setups, that clarity becomes even more vital.

2. Stronger Collaboration and Teamwork

No team can thrive without good communication. Whether it’s brainstorming, problem-solving, or delivering feedback, collaboration relies on the open exchange of ideas. In a survey conducted by Salesforce, 86% of employees and executives cited lack of collaboration or ineffective communication as the reason for workplace failures (Salesforce).

Effective communication tools enable employees to communicate across time zones, departments, and even language barriers. More importantly, it ensures that people feel heard - a key component of strong team culture. Active collaboration happens when people feel safe sharing ideas and confident that their voice matters.

3. Higher Employee Engagement and Retention

Employees want to feel heard, informed, and included. When leaders and managers communicate clearly and regularly, employees feel more connected to their work and to the wider organization. According to a study by Gallup, businesses with highly engaged employees experience 21% higher profitability (Gallup).

This engagement is built through communication touchpoints - from onboarding to team check-ins to performance reviews. The most successful companies create a rhythm of communication that supports professional growth, not just operational updates.

When communication is lacking, the employee experience suffers. Unclear expectations, lack of feedback, and infrequent recognition can all contribute to disengagement. And when people feel disconnected from their work, they’re more likely to seek fulfillment elsewhere.

4. Stronger Leadership

Effective communication in management is about more than giving orders. Great leaders listen actively, communicate with empathy, and adapt their message to different audiences. They align teams around a common vision and clearly articulate what success looks like.

One-on-one conversations, team meetings, and company-wide updates all present opportunities for leadership to build credibility and trust. Transparent leaders model the communication culture they want to see throughout the organization. That clarity builds alignment - and alignment fuels results.

Research from Harvard Business Review found that 69% of managers are uncomfortable communicating with employees, especially when it comes to giving feedback (HBR). This discomfort can lead to avoidance and ambiguity, which erode trust. Building strong communication habits in leadership should be a top development priority.

5. Better Customer Relationships

Internal communication is only part of the picture. How your team communicates externally - with clients, customers, and partners - shapes your reputation and business outcomes.

Poor communication can result in missed deadlines, unmet expectations, and customer churn. On the flip side, clear, professional, and proactive communication helps to build long-term trust. Front-line teams should be empowered with tools and training to communicate effectively across all channels.

A 2022 PwC survey found that 32% of customers would stop doing business with a brand they loved after just one bad experience (PwC). The margin for error is slim - especially when customers have high expectations for service and response times.

What Should Managers Know About Communication in the Workplace?

Managers play a central role in shaping a company’s communication culture. They act as both messengers and filters - relaying information from leadership while also listening to team concerns.

Here are a few principles every manager should keep in mind:

  • Communication is a two-way street. Listening is just as important as sharing.
  • Not all communication needs to be formal - but it should always be clear.
  • Feedback should be timely, specific, and constructive.
  • Different people process information in different ways - consider visual, written, and verbal preferences.

Managers should also be aware of tone and timing. A rushed or poorly timed message can create confusion or tension, even if the content is accurate. Taking the time to consider how a message will be received is just as important as the message itself.

How to Improve Communication in the Workplace

Improving workplace communication doesn’t require a complete cultural overhaul - but it does take consistent effort. Here are a few proven strategies:

Define and Normalize Communication Channels

Make it clear when to use email vs. chat vs. meetings. When communication channels are clearly defined and consistently used, it reduces confusion and keeps everyone on the same page.

Consider creating a communication playbook to help new and existing employees navigate how the team communicates. This can include norms around response times, meeting structures, and preferred tools.

Lead by Example

When senior leaders prioritize transparent, thoughtful communication, it sends a powerful message throughout the organization. Culture cascades from the top.

Leaders should model the behaviors they want to see, such as active listening, follow-through, and inclusive dialogue. When communication is visibly prioritized, others follow suit.

Create Feedback Loops

Provide regular opportunities for employees to give input - whether through surveys, suggestion boxes, or 1:1s. Make sure feedback is acknowledged and acted on.

It’s not just about collecting feedback - it’s about closing the loop. Employees want to know their input is heard and valued. When they see action based on their feedback, trust deepens.

Invest in Tools That Support Communication

Whether it's Slack, Microsoft Teams, or Avocor’s interactive displays and digital signage, technology can help connect distributed teams and make collaboration smoother. Consider how your current tech stack either supports or hinders communication.

Visual collaboration tools can be especially helpful in hybrid or remote settings, offering a shared digital canvas for brainstorming, planning, and ideation.

Provide Training

Workshops on communication styles, emotional intelligence, and conflict resolution can help employees at all levels communicate more effectively. These are not "soft skills" - they’re essential competencies.

Consider offering coaching for managers or even peer-learning groups where employees can practice and refine their communication skills. Over time, these investments lead to stronger collaboration and better outcomes.

Final Thoughts

So, why is communication important in the workplace? Because it’s the thread that ties everything together - from strategy to execution, from employee experience to customer success. It affects productivity, engagement, innovation, and the overall health of your business.

Poor communication is costly. Great communication is a competitive advantage.

By investing in communication strategies in the workplace, encouraging effective communication in management, and embracing modern methods of communication at work, organizations can build a culture where everyone is informed, aligned, and empowered to do their best work.

Looking to improve communication across your teams? Explore how Avocor’s interactive displays can help create more engaging, productive, and connected workplace experiences.

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