Why effective communication Is Important for Businesses?

Communication is key in every aspect of business.

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Sometimes the difference between a "good job" and a "bad job" is not so much the tasks at hand, but the people you work with. Sometimes you'll accept lower pay if the reasons are explained to you in a compelling manner. Sometimes your stress levels plummet just by a simple "hello" from a co-worker. Effective communication can be key to the ability of a business to function smoothly.

Types

There are many ways to categorize effective communication styles, but the American Management Association talks about four in particular: the listener, the creator, the doer and the thinker. The listener is an effective communicator because he is steady, understands there is more than one way to achieve the same results and is willing to listen to other perspectives. The creator is another effective communicator because he is enthusiastic, creative and skilled in persuasion. The doer is assertive, goal-oriented, verbal and competent in problem-solving. The thinker is analytical, slow to react and contemplative.

Benefits

Towers Watson's 2009/2010 Communication ROI Study Report "Capitalizing on Effective Communication" found, "Companies that communicate with courage, innovation and discipline, especially during times of economic challenge and change, are more effective at engaging employees and achieving desired business results." They discovered that most effective communicators had 47 percent higher total returns to shareholders over a five-year span than the least effective communicators. The best companies invest in leadership training and interpersonal communication for management. They use social media to connect with their employees in a cost-effective and engaging way. They communicate their employee rewards and benefits; and they use communication tools to drive productivity and quality.

Related Reading: Characteristics of Effective Communication

Function

Workplace bonding improves employee satisfaction, retention and productivity. This finding is nothing revolutionary. It's this "watercooler gossip" and break-room bonding that relieves tension and helps employees make it through the most difficult aspects of their jobs. Employees like to have a sense of power and control over their settings, explains therapist Don Nelson in a 2002 interview with "USA Today." They need that sense of intimacy and release to avoid burnout.