While organizations heavily invest in managing their reputations with customers, investors and regulators, many fail to engage their workforce with the same urgency and strategy, according to the Employee Communication Impact 2024 study released today by the USC Annenberg School for Communication and Journalism in partnership with Staffbase. This oversight can contribute to talent retention challenges.

The survey found 61% of employees who are considering leaving their jobs cited poor internal communication as a factor, with 26% naming it a major cause. And almost half of managers, 49%, admitted they don’t know their company’s goals, underscoring widespread communication breakdowns.

“Talent shortages, shifting employee expectations and the rise of AI-driven communication tools are increasing the need for organizations to get serious about internal communication,” Staffbase co-founder and Chief Strategy Officer Frank Wolf said in a press release. “Our study conducted with USC Annenberg highlights a critical need for organizations to rethink their approach to internal communication or risk losing valuable employees.”

The report highlights priorities for the future of internal communication:

• Flexibility. An organization’s workforce may work remotely, thus internal communicators must utilize multiple channels to reach their entire population.
• Transparency. Supervisors are the main channel for internal communication, yet only 49% of employees receiving messages from their supervisors are familiar with company goals. Employee trust is lost quickly if they believe a company is not being candid, according to the report, so companies must ensure managers are trained to communicate effectively with timely, accurate information.
• Speed. Employees are likely to receive company news and information from outside sources before they hear it from their employer, so speed is critical. The survey found 69% of employees who are satisfied with internal communication plan to stay in their jobs over the next year, highlighting the critical role of communication in employee retention. However, only 29% of employees report being “very satisfied” with the quality and frequency of company communications.
• Feedback. Understanding employee viewpoints on both business and societal issues is essential to make executive decisions, the report states. While Gen Zers often say working for a company with a clear purpose is crucial, less than half, 46%, said they understand their organization’s bigger picture. This gap affects employee satisfaction, as 64% of those who are “very happy” in their roles are also “very familiar” with their company’s goals, objectives and vision. Those most committed to the mission and goals of the company were significantly more likely to say they are likely to stay at their jobs than others at 67% and 21%, respectively.

The survey was conducted from July 16 to July 23 among 1,007 adults in the US who are employed at companies with 5,000 or more employees.