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Understanding the Importance of Internal Communication in Business

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Internal Communication Business

The quality of your internal communications can have a big impact on all of your other business operations. The quality of your commutations will not only affect the internal workings of your business, but can also impact customer relations and your company’s reputation.

It is easy for businesses to underestimate the importance of internal communication as many focus on more immediately measurable metrics. However, neglecting internal commutations can have a very big impact on the long-term health of your business.

What is Internal Communication?

Before jumping into why internal communication is so important in business, it is first necessary to explain what is meant by the term internal communication. Internal communication is the flow and exchange of information between a company’s departments.

The term high-quality internal communication is used to describe the free flow of exchange between staff members without limitations based on departments or superiority level. High-quality internal communication is also based upon the tone of the communication, namely how open, respectful or judgmental it is. A company that has high-quality internal communication is one in which staff feel free to express their ideas without fear of judgement or criticism.

Now that you have understood what is meant by the term internal communication, it is time to focus on its importance in your business.

Internal Communication Boost Employee Engagement

As demonstrated by the findings of Simpplr, high-quality internal communication can have a very positive impact on employee engagement. An employee who feels encouraged to express themselves and sees an open channel of communication between staff and managers report higher engagement rates. Furthermore, this high level of internal communication helps staff to feel more valued and listened to. This in turn encourages employees to work harder to further the interests of your business.

Internal Communication Stimulates Innovation

Innovation can help businesses to grow, excel and gain a competitive edge, in the rapidly evolving marketplace. Innovation is reliant upon internal communication, more specifically, the different perspectives of staff coming together to find new ways of problem-solving. Without the option for internal communication, real sustained innovation will not be possible for your business.

Internal Communication Drives Action

Internal communication drives action in the business world, both internally and externally. Efficient communication helps staff to get on the same page quickly. This means that parties can easily find the information they need to complete a task, find assistance when necessary and brainstorm solutions. Efficient communication can take seconds, whereas delays caused by a lack of communications can have devastating consequences.

Internal Communication Reduces Stress

Having clear and open channels (which encourage staff to communicate) can help to reduce stress levels in your business. This can have very positive effects on employee morale and company culture. When staff feel stressed, the effects will build up over time and start to impact their mental and physical wellbeing. Stress can be quite contagious, affecting the working environment and internal communications as a whole. It is critical that you maintain open channels to communicate to reduce any potential harm caused by increases in employee stress levels.


I'm a passionate full-time blogger. I love writing about startups, how they can access key resources, avoid legal mistakes, respond to questions from angel investors as well as the reality check for startups. Continue reading my articles for more insight.

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