Poor Communication is Costing Companies Millions: This is the Solution

Studies show that poor communication can cost a company with over 100,000 employees an average of $62.4 million per year. Even smaller companies, consisting of around 100 employees, lose an average of $420,000 per year.

These are truly staggering numbers. So, why haven’t you heard more about it?

First — most leaders don’t know it’s happening because they’re contributing to the problem.

Second — even if they do, they don’t know where they’re going wrong or what to do about it.

Poor communication starts at the top and many leaders are missing the mark. In fact, 91% of employees surveyed by The Harris Poll said their leaders lack effective communication skills.

To a degree, this makes sense. Today’s leaders are feeling the squeeze. With technology advancing at breakneck speeds, the pressure to innovate is immense, and the pace of business continues to increase. Not to mention, hybrid and remote work have made almost all communication virtual, creating a frenzy of messaging from every imaginable platform. For leaders and employees alike, it’s hard to keep up. 

One thing is for certain: businesses can’t afford to fail at communication any longer. Let’s look at some of the biggest messaging meltdowns that leaders make and explore how they can level up their game to eliminate poor communication altogether.

#1. Lack of EQ, a.k.a. The Audience Obstacle

Drill down in the aforementioned Harris Poll survey, and you’ll find that a lack of emotional intelligence is cited as a key issue in how leaders communicate. Over the last few years, the phrase “emotional intelligence,” or EQ, has garnered a lot of attention in corporate leadership circles. But not many people talk about how exactly EQ comes out (or doesn’t) in messaging.

It comes down to empathetic communication, or the capacity to understand and share the perspective of another person. Henry Ford said it best, "If there is any one secret of success, it lies in the ability to get the other person's point of view and see things from that person's angle as well as from your own." 

To put it simply, leaders aren’t taking the crucial step of understanding their audience before communicating, making it difficult for their messages to resonate.

So, if you’re a leader, get to know your team members, including their struggles and successes. Pay attention to what they’re working on. Understand their personal “why.” Centering their motivations in your mind before communicating will naturally increase engagement and productivity.

#2: Context Is Underrated

Context refers to “the parts of a discourse that surround a word or passage and can throw light on its meaning” (Merriam-Webster, Definition 1).

One of the biggest mistakes people make when communicating is assuming that the recipient of a message either already knows or doesn’t need to know the context that surrounds it. Keeping employees in the dark will only lead to misunderstandings, confusion, and lack of engagement.

For leaders, context can be tricky. Full transparency is not always permitted, or appropriate, for certain audiences. However, you don’t necessarily have to lay all your cards on the table to add pertinent context to a message.

Ask yourself the following questions before you start:

• How does the story I’m telling, or request that I’m making, relate to my employees (their “why”)?

• What information do I have that they may not? Will this information help them complete the task at hand?

• What is the bigger goal we are trying to achieve, and how does it relate to my message?

Adding in context will clarify your message and employees will be more engaged, as they understand where you’re coming from and how their work relates to the bigger picture. 

#3 Platform Matters 

In an age where one company can have several different messaging platforms (think email, instant messenger, video conference, phone call, text, in-person, social media, etc.), leaders must think critically about their strategy for communicating on each one.

A foolproof formula for understanding when to use which platform is to arm yourself with one simple question: “How will my message be received if I use _______ platform?” 

This question may sound remedial, but it works. It goes back to putting yourself in the shoes of your audience. If you choose an instant messenger for a long and complex explanation, it might not be fully digested, as most people come to that platform for quick and casual communication. If you have something important, and potentially game-changing to say, consider a video call to connect with people in a real-life setting, gauge reactions, and answer questions as they come up. 

Ultimately, each leader will have a unique team and the right decision will vary across individuals. The key is to be intentional about what you’re communicating and where to make your message clear and effective. 

Good Communication is Universal

The tenants of good communication don’t change with job titles. If you’re a leader, work on understanding your audience and add helpful context to connect to employees and avoid the massive cost that companies face due to inadequate messaging. Focus communication efforts on how the recipient will connect to the message, and authentically relate to your employees.

Implementing these tips into your communications is an intentional practice at first, but it will quickly become muscle memory as you repeat them daily. And perhaps best of all, good communication is contagious. As the people around you become the recipients of your thoughtful messaging, they will likely follow suit. 

Is there room for improvement in your team’s communication skills? Ask me about my business writing and communications course for professionals, which can be tailored to solve your team’s biggest communication pain points.