A group of employees are gathered around a small table while a woman speaks to the group. The image reflects a small, informal meeting of employees.
According to the Harvard Business Review, companies that emphasize strong internal communications report higher profits and more engaged, loyal employees. — Getty Images/FatCamera

Internal communications are an important, if often underutilized, tool for improving employee engagement and productivity. Over 45% of employees say the communications they receive from leaders are relevant and useful in completing their work. When information isn't shared throughout a company clearly or transparently, employees feel frustrated, excluded, and they start looking for their next opportunity.

A strong internal communications plan, however, can overcome many of these issues and help build a collaborative, cohesive work culture. If you haven't focused on building an internal communications plan for your company, here's where to start.

What is an internal communications plan?

An internal communications plan is similar to a marketing plan but for those working within your company. It defines the following:

  • Who are your audiences? C-suite leaders, the board of directors, new hires, and different operational teams are all examples of internal audiences.
  • What information do you need to communicate? We'll explore this in more detail below, but pertinent information could include product updates, company policy changes, progress toward milestones, and recognition.
  • How will you share your information? Define what channels you will use to distribute updates, such as Slack, email newsletter, all-hands meetings, etc.
  • How often will you communicate? Some updates will happen regularly; others will be urgent. Find the right cadence to keep everyone on the same page.

Internal communications plans help keep your team focused, working toward a common goal, and in sync with company priorities. Internal communications can also be a good way to build culture and recognize your employees' hard work. It plays an important role in employee retention.

[Read more: How to Create a Successful Internal Communications Strategy]

Strong internal communications factor more significantly into company loyalty than what many business owners realize — and it's also a huge opportunity to improve engagement.

How can effective internal communications improve employee retention?

Research shows that 81% of employees prefer to work for an organization that values open communication than one that offers perks like free meals or great benefits. Strong internal communications factor more significantly into company loyalty than what many business owners realize — and it's also a huge opportunity to improve engagement.

Consider some of these data points from the Harvard Business Review:

  • Well-informed employees are 2.8 times more likely to be engaged; business units with engaged workers report 23% higher profits.
  • Employees who get daily feedback from their manager are 2.1 times more likely to trust their leadership team.
  • Nearly 80% of workers at collaborative organizations report feeling well prepared for challenges, and 55% report growth in their revenue. This rate is almost twice what those at less collaborative organizations say.

Ultimately, a strong internal communications plan helps employees feel like they have the autonomy to make better decisions that benefit the business. They can work more productively, course-correct faster, and they feel motivated to work toward clear business outcomes. And when employees feel like they have a stake in the future of the business, they're more likely to stay longer.

How to build an effective internal communications strategy

Internal communication strategies look different for every business. Start by identifying your current internal communications and set goals for moving forward. What do you want to accomplish? Ideally, set SMART (specific, measurable, achievable, relevant, time-bound) goals to ensure you can track and measure your progress.

Then move on to the tactical portion of your plan. What channels and tools will you use to regularly engage your employees? Many companies default to email communications, but consider using messaging apps like Slack or employee advocacy tools like Sociabble or EveryoneSocial.

[Read more: 9 Free Team Communication Tools for Startups]

Remember, not every person in your organization needs to receive the same internal communications. Your C-suite leaders need different information to perform their jobs well than midlevel managers. Consider segmenting your internal communications to keep everyone on the same page without overwhelming your team with too many messages.

Finally, determine your key performance indicators so you can measure how effective your communication strategy is and where it needs improvement. Choose indicators you can measure through employee surveys, feedback loops, and internal analytics. Take stock regularly to make sure your internal communications are netting the right results.

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