As companies scramble to manage external relationships and dynamics, they are losing sight of their most crucial audience: their employees.

A new study conducted by the USC Annenberg School for Communication and Journalism in partnership with Staffbase uncovers a startling truth: 61% of employees who are considering leaving their jobs cite poor internal communication as a factor, with 26% naming it a major cause. Alarmingly, 49% of managers admit 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," said Frank Wolf, Co-Founder and Chief Strategy Officer of Staffbase. "Our study conducted with USC Annenberg highlights a critical need for organizations to rethink their approach to internal communication or risk losing valuable employees."

Key Takeaways:

• Effective communications retains talent:

  • 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. Meanwhile, only 29% of employees report being "very satisfied" with the quality and frequency of company communications.

• Employee happiness is tied to communication: Workers who are happy with internal communication are 46% more likely to be happier at work. This highlights the critical connection between engagement, morale, and the bottom line in competitive talent.

• Lack of clarity on company goals: While often Gen Zers say working for a company with a clear purpose is crucial, less than half (46%) 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 (67%) are significantly more likely to say they are likely to stay at their jobs than others (21%).

• Supervisors are key but often ineffective—or untrusted: Supervisors are the main channel for internal communication, yet only 49% of employees receiving messages from their supervisors are familiar with company goals. Even more concerning, just 56% of employees say they fully trust their line managers.

The rise of remote work and the increasing adoption of AI underscore the urgency of embracing more personalized communication strategies. This means understanding the evolving dynamics of work to personalize communication that resonates with employees' individual needs and preferences.

"This study underlines the growing importance of internal communications as a business strategy," said Fred Cook, Director of the USCAnnenberg Center for Public Relations. "Maintaining a constructive dialogue with employees can improve morale, increase productivity, build culture and retain valuable employees."

To learn more and download the report, please visit here