30 May 2007
Potential of internal comms still untapped
Large organizations spend only £10 per head on internal communications, report says.
A report by business research body, The Work Foundation, is challenging senior management teams to recognize the potential of internal communications (IC) to drive the performance of their organizations.
The study, IC:UK 2006-7, looked at 596 large organizations in the public, private and voluntary sectors and found that IC departments are working increasingly closely with CEOs, focusing their efforts on helping staff engage with the business.
More support for managers
However, the report also says IC professionals need to connect better with line managers, and not seek to bypass them by talking directly with staff.
Communicating effectively inside organizations isn't something to be done for the sake of it, but is a central performance issue.
It also says that to convince boards that IC is an investment not a cost, internal communicators need to build their "organizational constituencies" by developing links with peers in marketing, finance, communications and HR departments.
Growing in importance
The report's co-author, Dr Michelle Mahdon, a researcher for The Work Foundation, says communicating effectively inside organizations is a central performance issue.
"On the shoulders of the IC function rests the heavy burden of ensuring the strategic direction of an organization is known, understood and, above all, acted on," Mahdon says. "Get it right and the result is increased engagement and productivity, with employees performing the role of ambassadors for the brand. Get it wrong and top teams will soon learn just how contagious apathy and cynicism can be," she warns.
Playing a key role
The report also found that:
- Leaders were felt to be the most important stakeholders for IC professionals, especially in the private sector. After the CEO, the most important stakeholders were employees, the HR function and line managers.
Internal communicators are involved in major decisions in 90% of organizations.
- Smaller companies spend more of their budgets on IC. Organizations with 5,000+ employees spent approximately £10 per head on IC. Those with under 1,000 (but more than 500) people spent £66 per head.
- Internal communicators are involved in major decisions in 90% of organizations, while their budgets have increased in 42% of organizations in the last three years.
- The two key roles that internal communicators played across all sectors were helping staff to understand the organization and internal PR. However, in profitable private sector organizations, internal communicators were more likely to see their role as supporting line managers.
Although 91% of IC professionals use e-mail, it's judged the least effective communication channel.
- Although 91% of IC professionals use e-mail, it's judged the least effective communication channel. Instead, mostly "old media" techniques such as team briefings, newsletters, magazines and face-to-face events were seen as the most effective.
- Over 60% of organizations across all sectors have no collective "one-size-fits-all" mechanism for communication, preferring individual techniques.
Hub discussion forum
Do you think the IC:UK 2006-7 report will strengthen the case for internal communicators to take a stronger role in organizations, or is it telling us something we already know? Have your say on the Hub discussion forum.
Got a news story? Contact the newsdesk