Strong internal communication is key to thriving in today's fast-paced business environment. Think of it as the invisible thread that weaves together every department, ensuring that everyone marches to the beat of the same drum.
But here’s the twist: effective internal communications aren’t just about keeping the team in sync.
Internal communications are a powerhouse for boosting your bottom line, a catalyst for driving impressive returns on investment (ROI). Intrigued? Let’s peel back the layers and explore how honing your internal communications strategy can transform your business into a profit-generating machine.
Internal communications are not just a mere necessity but a strategic asset. Like any investment, internal communications need to be justified by their return on investment (ROI). In this blog, we'll explore how to build a compelling business case for a modern intranet, demonstrating its value and impact on organizational efficiency and culture.
Internal communications bridge the gap between management and employees, fostering a connected and informed workforce. According to a study by Deloitte, effective internal communications can boost employee engagement by up to 30%, leading to higher productivity and better organizational outcomes. According to Gallagher’s most recent State of the Sector report, 74% of more than 2,000 respondents said the primary purpose of internal communications is to support culture and belonging. Post-pandemic, this marks a shift from IC’s long-standing leading role in communicating strategy and creating alignment around an organization’s vision and purpose (67%). These main IC objectives are followed by:
Identify Needs: Understand what your organization seeks to achieve with better internal communications.
Set Objectives: Define clear, measurable goals for your communications strategy.
Benchmark: Compare your current communications against industry standards.
Calculate Costs: Estimate the financial investment in a dedicated internal communications platform.
Project Benefits: Forecast the expected benefits, including improved employee engagement, reduced training costs, faster information dissemination and the positive ROI of the investment across the organization.
ROI in internal communications is not just about financial returns. It encompasses qualitative benefits like increased employee satisfaction, reduced turnover, and enhanced corporate culture. Calculating ROI (Return on Investment) for an internal communications platform can be tricky because it deals with employee engagement, a softer metric compared to hard sales figures. However, there are ways to quantify the impact and build a strong case. Here's a breakdown:
Here are some recommended KPIs (Key Performance Indicators) for an internal communications platform:
A transportation company based out of Scotland with 24,000 employees operating all over United Kingdom, implemented an internal comms mobile app to reach its large, frontline workforce of bus drivers. The app boasted an 84% user rate within the first week and led to a 32% increase in employee satisfaction and a 26% reduction in turnover. This demonstrates the platform's effectiveness in boosting employee engagement and reducing costly turnover.
A major US financial services company had a need to improve communication efficiency for its 30,000 employees, and they revamped their internal communications platform. The new platform increased employee engagement with key company updates. This exemplifies the ROI gained from a platform that facilitates clear and timely information flow.
Senior management might hesitate to invest in a new internal communications platform. Here's how you can address potential objections:
By addressing objections proactively and demonstrating the value proposition of an internal communications platform, you can increase your chances of securing buy-in from senior management.
Organizations in over 25 industries trust Sparrow Connected as a leading internal communications platform because of its comprehensive features and solutions. Sparrow Connected’s user-friendly platform integrates natively with Microsoft Suite tools and offers an AI powered Omni-Channel solution that ensures seamless communication across various channels. Sparrow Connected is focused on employee engagement, collaboration, and employee well-being, to help organizations build a transparent, productive and innovative work environment, making it easier to keep employees informed and engaged.
Intranet: Sparrow Connected's platform enables you to use the Intranet to create a connected community where information flows freely and every voice propels us forward.
Employee Engagement Survey: Discover a culture of empowerment with Sparrow Connected's nuanced Engagement Surveys, where every response shapes your company's future.
Omni Channel: Seamlessly reach every team member with Sparrow Connected's Omni Channel approach, where connection is omnipresent, and every message resonates.
Analytics: Drive strategic decisions with Sparrow Connected's Analytics, turning data into your most compelling narrative of success.
Operational Efficiency: Sparrow Connected elevates efficiency, transforming everyday operations into a symphony of streamlined productivity.
One of our clients, a global retail chain, saw a 300% increase in employee engagement scores after implementing Sparrow Connected’s platform in just 6 months. By integrating Sparrow Connected, they were able to streamline their internal communications, leading to improved operational efficiency and a more cohesive work environment.
Investing in internal communications is not just about improving information flow within your organization. It’s about creating a culture of engagement, enhancing productivity, and ultimately driving business success. By leveraging the right tools and strategies, you can unlock significant ROI from your internal communications efforts.
Internal Comms = backbone of your business. It's crucial for alignment and culture.
Boosting ROI = A surprising yet undeniable side effect of great internal communications.
Strategy revamp = Unlock your business's full potential and watch it soar.
What challenges are you facing with internal communications? Let’s tackle them together and explore how enhancing your comms can lead to substantial business gains. Ready to transform your internal communications? Book a Free 30-Min IC Consultation today and discover how our solutions can help your organization.