According to a Study by Watson Wyatt Worldwide, Companies that communicate effectively with their workers financially outperform those that don't. Watson Wyatt's 2005/2006 Communication ROI Study found that between 2000 and 2004, companies with most effective communication programs returned 57% more to their shareholders than companies with the least effective communication programs.

According to the survey of employers in the US and Canada, companies with the most effective communication programs achieved a 91% total return to shareholders, while those with the least effective communication programs earned a 58% total return. The study also found that a significant improvement in communication effectiveness is associated with a nearly 20% increase in a company's market value.

Specifically, the study identified nine communication practices that are directly linked to an increase in market value:

� Driving managers' behavior to communicate effectively;
� Connecting employees to the company's business strategy; and
� Following a formal communication process.
� Facilitating changes effectively
� Creating employee line of sight.
� Focusing on continuous improvement.
� Effective use of employee feedback.
� Integrating total rewards.
� Leverage Technology

The number of companies using 'formal' communication measures increased 11% during the past two years from 73% in 2003 to 81% in 2005. According to Watson Wyatt this is primarily due to the increased use of focus groups and surveys.

Three-quarters of all respondents used more electronic communication in the past 24 months, while 30% used less print communication. Seven percent of the high-effectiveness companies also used blogs and wikis to help get their message across. Companies with high levels of communication effectiveness were 20% more likely to report lower turnover rates than their competitors.

The study also identified several best practices that differentiate companies with the most effective communication programs from those with the least effective. For example, companies that communicate effectively are much more likely to give workers the opportunity to provide input into how the business is run. High-performing companies also consistently measure the communication function's contribution to their strategic business goals.

'The results of our study confirm that communication is a critical element in creating successful business results,' says Kathryn Yates, global director of communication consulting at Watson Wyatt. 'The more effectively a company communicates with its employees, the better off its shareholders will be.'

Author: S.wright

About the author:
Simon Wright is Co-director of Gatehouse Group, UK's leading internal communication agency, provides global services for internal communications, internal comms, internal comms research, audit, jobs, and employee engagement.

Article source: Free Public Relations Articles.