Communication and Conflict in Companies and Organizations

Updated: May 21, 2020

Ineffective communication methods may be causing major conflict in your company or organization. A 2019 communication study released by Dynamic Signal reported staggering numbers when it comes to how poor communication negatively affecting companies. The study found that turnover rates are high due to ineffective communication strategies, and a Fortune 500 company can be exposed to nearly $1.2 billion in turnover costs as a result. Based on an average salary of approximately $73,000 per year, it costs roughly $24,000 to replace an employee. Dynamic Signal researched productivity factors, company advocacy, and morale in conjunction with communication:

· 85% of employees report losing at least one to two hours of productivity a week searching for information. This equates to $60 in lost wages per week, per employee, in the U.S. according to the Bureau of Labor Statistics. At a national level, this could result in trillions of dollars lost in productivity.

· 82% of employees said they would be more likely to be an advocate for their organization if their company communicated with them more effectively.

· 80% of the U.S. workforce reports feeling stressed because of ineffective company communication.

· 70% of the workforce feels overwhelmed because of broken communication methods and fragmented information.

· 69% of employees would be less likely to consider quitting if their companies were better at effectively communicating, even when satisfied with their compensation.

· 63% of people say they are ready to quit their jobs.

· 60% of employees report that they wouldn’t confidently advise keeping their CEO because of the poor company communication they’ve experienced.

· 52% of employees have witnessed poor financial outcomes because of ineffective communication including lost sales and damaged company reputation.

These findings can burden company/organization finances and productivity, and communication is an issue that definitely deserves investment. It is important to look at communication systems. Are technology platforms up-to-date with team needs, and are upper management/execs/leaders utilizing the systems effectively? Is leadership trained in communication strategies and conflict resolution methods? Conducting blind surveys can be helpful, as these can reveal some “blind spots” in the communication pipeline. It is also important to facilitate fresh communication methods and agreements amongst teams and management. This can help relationship building and encourage employees to approach their managers with issues or questions.

These are only a few strategies that can begin to mitigate communication problems. Overall, it will save money if these factors are addressed directly. From there, innovative solutions can be explored to help minimize and eliminate internal conflicts.

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