Why is communication important in a business?

Why is communication important in a business?

Communication is vital to how a business functions and its individual teams. Without it, your employees, managers and corporate strategy are rudderless.

For some members of staff, communication comes naturally – either by being more vocal and outgoing or responding to emails promptly. For others, it can be more difficult. This may be down to a number of reasons, such as being naturally quiet or being new to a company.

Whichever it may be, it is your job as a manager or business owner to implement effective communication rules and procedures. This way, you can ensure each employee is on the same page and grows in confidence with their communication skills. It will benefit your company.

Read on to see our top tips and why is communication important in the workplace…

What is effective workplace communication?

Effective communication in the workplace is an integral element of every business’s success. It enhances relationships within the business, your external network and clients.

Good communication also increases engagement among employees, which will boost a team’s morale and overall effectiveness. However, when teams or employees fail to communicate properly, the results can be detrimental to your business

The majority of business mistakes, either as a collective or by an individual, are down to poor communication. This is why communication is crucial to job training and in the hiring process of new staff. By putting an emphasis on clear instructions and conversations, you can prevent mistakes from happening within the workplace.

Teamwork & Team Building

Teamwork is a crucial part of a business succeeding and underpinning all of that is communication allowing a team that can flow from one project to the next.

Building an effective team of employees is all about how each team member communicates and collaborates with one another. By implementing effective strategies to boost communication you will go a long way in building effective teams. By doing so, this will improve employee morale and job satisfaction.

When team leaders are good communicators, they inspire their team members to work towards a common goal. To do so, they make sure everyone knows their responsibilities and how to action them. With an open dialogue, employees pitch in when others in the organization need their help, and know when to ask for help, in return.

When staff talk to each other, are open to other opinions and discuss their progress, they will be more enthused to work together. As a result, the team they create makes the workplace much more positive. This is then reflected in their work or projects as they won’t want to let their colleagues down. Communication, as a whole, helps solve low employee morale by keeping teams in the loop, making all employees feel valued within the workplace.

Having a Voice

When employees feel like they are valued and that their opinion matters, they will contribute more to your business with a better attitude.

An increase in efficiency and productivity is often the result of your employees feeling like they matter, and this includes their opinion. This can include asking for their feedback on company ideas, potential clients, and management or business decisions. Get them involved in the business from strategy to priorities – empower them and build relationships with them.

This is all about creating an inclusive workplace. You need to ask employees how they are doing and what they think of the business. Listen to the feedback you get and remove barriers that negatively impact their engagement. You need to involve your staff in decisions so they feel a part of what they are working towards.

You need to ask them regularly for feedback and opinions because you may be surprised by what you learn and how it can improve your business. Some may have come from other businesses and can help yours grow, for example. If you can act on their advice and improve things, your employees’ engagement will increase greatly because they feel as though they matter. They are less likely to jump ship when problems arise.


Communication can be beneficial for your business, both internally and externally. Not just by a coherent corporate culture and message but a network to talk to.

Having a solid internal message and strong lines of communication ensure that the message you are putting out to clients and potential customers is consistent. Any growth project relies on strong communication and on all stakeholders being on the same wavelength. If you use effective communication strategies, you will earn the trust and loyalty of clients over time.

With this trust comes one of the easiest ways to get new business. A good relationship with existing customers can lead to positive word of mouth among their industry. This, therefore, all starts with how well you communicate from the beginning and how you maintain that communication. You need to anticipate their needs and constantly reach out to them. Have meetings to make sure they are happy and find solutions if they aren’t.

Companies who show clients that they understand them, their needs, and have a desire to help, are more successful over time. Great communication contributes to this and, if you can consistently show it, your company’s reputation will grow and attract more business opportunities. Positive and efficient communication among your business will give clear results from happier employees, clients and new customers.

In what other ways can communication benefit a business?

  • Improves management decisions
  • Increases employee engagement and morale
  • Helps to improve job satisfaction and loyalty
  • Can help make you more attractive to potential new hires
  • Resolves business problems
  • Defines your company goals and expectations

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