What is employee communication?
Employee communication involves the exchange of information, ideas, and feedback between employees and management within an organisation. It's a multi-faceted process that includes various forms like verbal exchanges, written communication, and electronic interactions.
This exchange takes place through diverse ways including emails, in-person meetings, company newsletters, and online platforms like intranets. By creating a culture of open communication, businesses can ensure that all employees are well informed, aligned with company objectives, and feel valued and heard.
Why is employee communication important?
Effective employee communication offers a range of benefits for businesses, contributing to a growing and successful business environment.
When employees feel well-informed and connected to their organisation, they are more likely to be engaged and motivated. This engagement translates to increased productivity, creativity, and commitment to their work. Actively encouraging "employee voice," where employees feel their opinions are valued and acted upon, significantly correlates with higher engagement levels.
Here are some ways that effective employee communication supports your business business:
✔ Clear and concise communication minimises misunderstandings, reduces errors, and streamlines workflows, ultimately leading to increased efficiency and productivity.
✔ Open communication facilitates better teamwork and collaboration by enabling employees to share ideas, provide constructive feedback, and work together effectively towards common goals.
✔ Well informed employees are better equipped to provide excellent customer service, leading to increased customer satisfaction and loyalty.
✔ Effective communication fosters a positive and inclusive workplace culture where employees feel valued, respected, and supported.
✔ When employees feel heard and appreciated, they are more likely to stay with the company, reducing staff turnover and associated costs.
Ultimately, effective employee communication contributes to improved business performance, profitability, and overall success. Research shows that companies with strong internal communication practices enjoy significantly higher shareholder returns compared to those with poor communication.
On the flip side, poor communication can have detrimental effects, potentially leading to lost sales and damage to a company's reputation.
Types of employee communication
Employee communication can be categorised into different types, each serving a specific purpose. These types often overlap and intertwine, creating a communication landscape within a business.
Formal communication includes official announcements, company policies, performance reviews, and other communications that follow established protocols and channels. For example, a formal announcement about a new company policy would typically be communicated through an official email or memo.
Informal communication encompasses casual conversations, team huddles, social events, and other interactions that occur outside of formal channels. For example, a team leader might have an informal conversation with a team member to provide feedback or discuss a project.
Upward communication involves communication from employees to management, such as feedback, suggestions, and concerns. For example, employees might provide feedback on a new company initiative through a survey or suggestion box.
Downward communication refers to communication from management to employees, such as company updates, performance expectations, and project instructions. It's important to note that while downward communication was once the primary mode of communication, modern workplaces are shifting towards more interactive and employee-centric approaches.
Legal and regulatory requirements
Businesses in Australia must adhere to various legal and regulatory requirements related to employee communication. These include:
The Fair Work Act 2009 outlines various workplace rights and obligations, including those related to communication, consultation, and dispute resolution. For example, the Fair Work Act mandates that employers provide employees with a copy of their relevant award or agreement, ensuring they are aware of their rights and entitlements.
The Right to Disconnect amendments to the Fair Work Act grant employees the right to disconnect from work-related communications outside of their working hours, unless it is unreasonable to refuse. This provision aims to promote work-life balance and protect employees from being pressured to respond to work-related communications after hours. However, the interpretation of "reasonable" in this context can be ambiguous and may lead to disputes.
The Privacy Act 1988 regulates the handling of personal information in the workplace, including employee data and communications. Employers must ensure that they collect, use, and disclose employee information in accordance with the Privacy Act. For example, employers must obtain consent before monitoring employee phone conversations or accessing their personal emails.
Workplace Health and Safety Legislation outline employers have a duty to provide a safe and healthy work environment, which includes effective communication to ensure employees are aware of potential hazards and safety procedures. This might involve regular safety briefings, clear signage, and accessible communication channels for reporting hazards.
How to improve employee communication
Effective employee communication is needed for creating a positive work environment and boosting productivity. By implementing a number of different strategies, businesses can enhance employee engagement, reduce misunderstandings, and create a more collaborative workplace. Here are some strategies to consider:
Resources and tools
Various resources and tools can help SMBs enhance their employee communication efforts:
Final thoughts
By understanding the nature of communication, implementing appropriate strategies, and using the available resources, businesses can create a positive and productive work environment and drive business growth. Regular evaluation and adaptation of communication practices will help ensure ongoing effectiveness and alignment with evolving business needs and legal requirements.
Our guide provides a framework for enhancing employee communication within your business. Now it's time to put these strategies into action! Prioritise communication, invest in the right tools, and aim to create a culture of open dialogue to see the rewards of a connected and engaged workforce.
If you need trustworthy advice about improving communication with your employees, our FREE 24/7 Advice Line is available to all Australian business owners. Call 1300 144 002 today to get all your questions answered today.