The costs of poor communication at work

I once wrote an article about the ROI on fun . It was about leadership, the importance of enjoying work and an orange dinosaur called SpiceRex (featured below). At the time of writing, however, I couldn't find any evidence connecting 'fun' at work and productivity. Then Warwick University released research findings showing that, "in the laboratory, they found happiness made people around 12% more productive".

Now, the data is available on the impact of workplace communication. But not in a good way.

So what about communication? Is there an ROI on that?

It's complicated.

Good communication is what Herzberg would call a 'hygiene' factor, not a 'motivator. He said, "motivation factors increase job satisfaction, while hygiene factors prevent job dissatisfaction". We all expect good communication. It prevents job dissatisfaction. But because it's a 'hygiene factor', it's often hard to spot when the lack of it becomes a problem.

We can measure a lack of great communication.

However, research now shows the impact of ineffective communication is now possible to measure. And there's a significant a downside. In a 2023 study by Forbes Advisor , "nearly 50% of respondents reported that ineffective communication impacted job satisfaction while 42% said it affected stress levels". In fact, they reported that 60% of respondents said digital communication increased feelings of burnout!

The cost of ineffective communication

In the same (Forbes Advisor) study, it was reported that:

• Ineffective communication impacted productivity for 49% of respondents.
• Nearly 50% said ineffective communication impacted job satisfaction
• 42% said it affected stress levels.
• For over 40% of workers, poor communication reduces trust both in leadership and in their team.

Another source, the 2023 State of Business Communication report by Grammarly , showed that 43% of business leaders say poor communication lowers productivity. And 19% said they have lost business as a result of poor communication.

Communication is a fundamental human need. You'd think we'd get it right, right?

Well, it turns out that while everyone can communicate, not everyone can do it effectively. There's a marked difference between working in a mushroom culture (where people are kept in the dark and fed on bullsh*t) and a place where - although the occasional misunderstanding takes place - people are generally well-informed, inspired and enthusiastic.

I've worked at both.

What's the difference between great or poor workplace communication?

When employees are inspired, they're generally happier. This means work satisfaction and motivation are higher. 79% of knowledge workers say they are more productive as a result of effective communication. A good message, positively shared, affects morale and productivity, confidence, engagement and mental well-being at work.

Mark Twain once said, "I can live for two months on a good compliment." Indeed, Japanese researchers found that sincere praise has a rewarding effect (which is higher for sincere praise than flattery). Yes, people can tell the difference.

But, while compliments are motivational, a business can't run on compliments alone.

Instead, communication should be authentic, relevant, inspiring, practical and led from the top.

That's why it's so important to get messages from senior leadership right.

The CEO's Voice: Inspiring Meaningful Communication

Strong leaders have to master many skills: strategic thinking, financial acumen, delegation and more. But the world has shifted. McKinsey Quarterly describes 'new leadership for a new era of thriving organisations'. In it, they say leaders need to 'show up' differently. Professionals are no longer simply required to meet expectations with a mindset of conformity. Instead, there's an evolution: now leaders are expected to be human. And that means being our whole best selves with a mindset of authenticity.

That's not always an easy shift to make.

Authenticity can feel vulnerable. Forced. Sometimes even 'cringey' if it doesn't come naturally.

I get it. I've worked with many, many leaders who have struggled to find their voice, their inspiration, their 'spark'. Before we worked together, some had lost their voice or spark. Some had never felt the need to develop this skill. Some actively suppressed it.

But something extraordinary happened when we worked together.

They started exploring their communication styles. And they discovered why people weren't reacting optimally. As a result of learning to shift their communication patterns, the C-level execs I have worked with changed their perspectives. But they also changed their relationships. And, in several cases, this work even changed their lives.

Communication Coaching for CEOs

Communication coaching for CEOs isn't just about making leaders look great on the screen, stage or page. It's about turning poor communication into meaningful communication. The results aren't just emotional. They're tangible. And they have a direct business impact.

So, yes. It turns out - there is an ROI on effective communication after all.

Find out more about Communication Coaching for leaders or book a complimentary 40-minute coaching session with me.