Poor Workplace Communication Costs. Why Communication Practices Are Important. Good communication practices are at the heart of every successful business. Motivation is the reason for peoples actions, desires, and needs. Motivation is also ones direction to behavior, or what causes a person to want to repeat a. Communication serves two essential functions in every organization. It disseminates the information needed by employees to get things done and builds relationships of trust and commitment. Without it, employees end up working in silos with no clear direction, vague goals and little opportunity for improvement. Successful projects and change programs are a rarity and real leadership is scarce. Staff morale plummets when communication is ambiguous, unfocused, lacking in important details and does not allow for genuine two way dialogue. Critically, the impact of poor communication hits customers and suppliers. They begin to feel disenfranchised and take their business elsewhere. Not long ago, the ability to communicate well was viewed as a soft skill that was nice to have, but considered not really necessary. Gmail is email thats intuitive, efficient, and useful. GB of storage, less spam, and mobile access. Employee Retention. OBJECTIVE OF THE PROJECT The main objective of doing this study was to understand the nature of work, employment, and labour relationships in call. A Study On Employee Motivation Project Report Pdf' title='A Study On Employee Motivation Project Report Pdf' />In todays rapidly changing business climate, its a mandatory requirement for everyone, from top level executives to the people on the shop floor. Organizations that fail to convey clear strategies and processes and engage employees in shared goals are likely to lose to companies with more effective communication practices. The Business Impact of Poor Communication. We all feel the personal costs of poor communication when a manager is rude or when we are not invited to an important meeting. However, what are the tangible costs of not paying attention to the quality of communication practices in your workplace Below we list the key business costs as a result of poor communication practices. The items on the list may convince you to take a closer look at the practices in your organization. Increased employee turnover. People voluntarily leaving is a significant cost to any employer. Employee replacement costs can be as high as three times the persons annual salary. A Watson Wyatt study found that companies that communicate most effectively are more than 5. Increased absenteeism. Inadequate, inefficient and insensitive communication severely impacts employee motivation. This in turn drives the employees decision to come to work each day. One company study revealed that 1. A more general study showed that where employees feel fully informed, absence rates are below average. Poor customer service. Poor communications with employees lead to frustrating communications with customers. Employees who lack guidance from management and are locked out of genuine dialogue about their job struggle to know how to satisfy customers and lose the commitment to do so. In the case of legal firm, Slaw, the company reports that 4. The link to the bottom line is well established. A well known study of retailer, Sears, revealed that a five point improvement in employee attitude results in a 1. Ineffective change management Change in business structures, systems and processes is accelerating. Yet well more than half of change programs fail to meet their objectives. Important here is the communications skills of managers in being able to deal with resistance to needed changes. A Towers Watson survey reveals only three out of 1. Companies with highly effective communication practices are more than three times as likely to employ managers skilled in change communications as less effective organizations. Failed project delivery. Two in three projects begun meet with project failure. The cost of project cost blowouts, budget overruns and project cancellations to business and governments is massive. Poor communication is cited as the main cause of failure for IT projects by 2. IT professionals. Greater incidence of injuries. Occupational health and safety accidents and stress related illnesses cost organizations and taxpayers billions of dollars each year. Inadequate communication is a major factor in many of these incidents. For example, the US Joint Commission for Hospital Accreditation reported the primary root cause of inadvertent patient harm was communication failure in over 7. Higher litigation costs. Employees feeling stress from poor relationships at work is a key driver of company law suits. One survey puts the proportion of employees suffering relationship stress at 1. Putting in place collaborative communication systems and processes for resolving conflict assists greatly in reducing the high cost of law suits. One study reports that organizations implementing collaborative conflict management systems reap savings in the order of 5. Lower shareholder return. The amalgamation of all of the losses resulting from poor communication practices cited above impacts the actual and perceived value of companies. A Towers Watson study concludes that companies with highly effective communication practices enjoy 4. This is not the end of the story. Other costs impacting companies include dampened innovation, lower employee productivity and increased incidence of product defects. Communicating effectively both internally and externally to the organization and at all levels of management, without doubt, impacts cash flow and revenue. Communication practices also affect the balance sheet, with the top communicating companies experiencing some 3. How are your organizations communication practices Are your managers and employees equipped with the skills and knowledge to communicate effectively How are you measuring both the level and quality of communication in your organization and the impacts of poor practices We invite you to investigate the communication resources and tools in this section as you embark upon improving communications in your organization. For a comprehensive literature review, see Laurel English. Formel-Editor 3.0 Word. Expert Author Leslie Allan AIMM MAITD.