The hidden cost of ignoring internal communications

Low worker engagement is costing the UK ￡257 billion annually, according to Gallup’s State of the Global Workplace report.?

One contributing factor??Poor internal communication.?

One-third of UK employees say they don’t hear enough about their organisation’s strategy, and this lack of connection is directly impacting business outcomes. Workers who feel uninformed have engagement scores 35 points lower than those who understand their organisation’s culture and values.?

As Gen Z grows to represent a quarter of the workforce by 2025, their expectations for collaboration and purpose-driven organisations make internal communications even more important. Yet many businesses still neglect this key area.??

Here's why that’s hurting your business and how you can fix it.?

The impact of poor internal communications?

1. Disengaged employees reduce productivity?

When employees are left in the dark, they lose motivation. If a major project lacks clear communication, deadlines are missed, work is duplicated and frustration grows. The result? A disengaged team that’s less likely to put in extra effort, costing your business time and money.?

2. Misaligned goals create chaos?

Without consistent communication, employees struggle to connect their tasks to the organisation's goals. This misalignment leads to inefficiencies and missed opportunities as teams focus on their silos rather than the bigger picture.

3. Misinformation breeds distrust?

Inadequate communication fuels rumours and misinformation. Employees hearing about changes like restructures or policy shifts through gossip—not official channels—can feel anxious and disconnected. Trust erodes, making it harder to build a cohesive culture.

4. Turnover increases without transparency?

When employees feel isolated or undervalued, they’re more likely to leave. High turnover doesn’t just hurt morale—it’s costly to replace staff. Transparent communication fosters a sense of belonging and improves retention.?

5. Innovation is stifled?

Creativity flourishes when employees feel empowered to share ideas. Poor communication discourages collaboration, stalling innovation and preventing your business from unlocking its full potential.?

So how do you improve??

Addressing internal communication gaps doesn’t have to require a complete overhaul but it does require consideration and an understanding of your objectives, audience groups, messaging and channels available.??

Remember, different people in different roles and levels of seniority will want to receive company messages in different ways.??

Start by exploring the current state of internal communications and don’t forget to talk to employees a part of your research.??

Consider the key stakeholders such as your ExCo or Board, your HR and sales teams – how can planned communications support their strategic priorities???

Identify the communications gaps and the steps you need to take to reach your goals. ?

Here are practical steps you can take:?

• Choose the right tools and channels - use platforms like Slack, Microsoft Teams or an intranet to streamline collaboration and information-sharing. Consider mobile-first channels too.?

• Be transparent and consistent - share updates promptly and regularly to build trust and ensure employees feel informed.?

• Encourage two-way communication - give employees opportunities to ask questions and provide feedback, fostering a culture of openness.?

• Tailor your messaging - recognise that different teams have different needs. Customise communications to ensure they’re relevant and accessible.?

• Measure and adapt - use surveys, analytics or feedback sessions to assess what’s working and make improvements as needed.?

The bottom line?

Internal communication is no longer just a “nice-to-have", instead, it’s an integral part of your business’s success. By prioritising clear, consistent, and transparent communication, you’ll help to engage your employees, align your team, and build a culture of trust and collaboration.??

Not all businesses have internal communication expertise in-house—less than 20% of UK organisations do. Hiring external specialists can be particularly helpful during periods of change or crisis.?

Our team of communication experts have experience in helping businesses of all sizes align their internal communications with their strategic goals.??