Efficient internal employee communication is amongst the significant drivers of employee engagement and organizational performance. HR Solutions (2010) engagement surveys found that employee engagement adds value to the organization by driving customer satisfaction, which in turn enhances loyalty and increases profitability and growth of an organization.
Furthermore, internal communications also creates an impact on the work and financial performance. Watson Wyatt Worldwide conducted a multiregional study of 328 business and 5 million employees using engagement scores and performances index. The report asserts that companies who invest in effective communication programs and keep employees engaged had an average of 26% higher productivity rates and were three times as likely to exceed performance expectations as those with less-engaged employees in an organization (Watson Wyatt Worldwide, …show more content…
More than four in 10 firms have no plan in place in case of a crisis (Freshfields 2013). An internal common reason for the crisis is, 55% of wrong strategic decision-making, followed by 38% of insufficiency internal communication (Dr. Lymbersky 2014). Therefore, it supports that an effective internal communication generates scope and opportunity to plan and create crisis management plan before any unforeseen situation occurs.
Once the crisis has occurred, it is important for the company to use first mover advantage and define the crisis instead of external media and audiences. During a crisis, stakeholders look up to company leaders for assurance that the company is in command of the situation. The single biggest predictor of reputational harm during a crisis is the perception by stakeholders that a company and its leaders don’t care (PRSA, 2012). Employees are the key stakeholders of the company (Institute for PR, 2012). Thus, inefficient and unclear communication can alienate the employees, increasing the risk of reputational damage during the