12 Reasons Why Business Communication is Crucial for Company’s Success

Updated On July 2, 2021 | by Alex Jones

Reasons Why Business Communication is Important

Being digital and global, businesses today need to communicate. Why? Because active communication can significantly contribute to the company’s success by enabling the employees to share valuable knowledge and execute business strategies. However, to make the communication effective, it should be held within the company and with customers, clients, vendors, and shareholders. 

The importance of business communication can’t be stressed enough in 2021. If you don’t adapt to it, your company may suffer substantial setbacks in profits and growth. That’s why learning the role of business communication, and its impact on business success is crucial. Here’s how;

1. Develops an Organizational Culture

Business communication can help you achieve an ideal organizational culture. Organizations that communicate transparently are more likely to have employees who are motivated and satisfied. Thus, ensuring a healthy workplace environment. 

On the other hand, companies with less or no business communication experience high turnover rates and low engagement followed by unsatisfied employees and customers.

2. Increases Customer Satisfaction

Business communication can lead you to experience a significant increase in the number of satisfied customers. In addition, if there’s effective communication within the company, the well-informed employees in the customer service department would be able to share any information your customer requires. 

Therefore, resulting in satisfied customers. Furthermore, according to a study, customer satisfaction is greatly influenced by the employees’ attitude resulting in revenue growth.

3. Creates Employee Advocacy

Employers who are skilled in communicating effectively are more likely to change employees into brand ambassadors. But how would employers and employees communicate better? One of the best ways of learning the art of communication is by earning a communication degree online

Another way is implementing the knowledge you learn through your educational degree. It will open new avenues and opportunities for you to practice being more communicative in your professional and personal life. 

Take brand ambassadors as an example. Given how they help the organization increase sales, boost marketing efforts, attract high-quality candidates, improve employer brand, and increase brand awareness – employers should also upskill themselves by being more open to communication with their employees. 

4. Polishes Up Knowledge Sharing Across the Company

In an organization, sharing knowledge is vital because it encourages employees to perform efficiently and increases the company’s overall productivity. Sharing knowledge is impossible without effective business communication, and if not adopted, it can result in the company’s downfall. 

5. Lowers the Turnover Rate

Communication within the organization encourages engagement among the employees and thus leads to satisfied employees. This satisfaction reduces the chances of employee turnover. This implies that business communication is not essential for customer satisfaction only but employee satisfaction as well. Employees should be kept updated with information related to their jobs. 

However, the management should ensure the information passed along is relevant because irrelevant details make it difficult for employees to grasp, leading to employee disengagement. 

6. Encourages Successful Collaboration with Remote Workers

According to a study, the majority of the US working population will switch to mobile by 2022. This suggests that a better communication strategy is the need of the hour. Why? Because remote workers face several communication-related challenges. 

These challenges include overcoming language and cultural barriers, information silos, and coordinating across time zones, to name a few. In addition, planning better communication strategies can positively impact remote workers. 

7. Encourages Collaboration Across Departments

Departments can’t collaborate productively if they can’t communicate effectively. Therefore, a company must have a business communication strategy to enable the departments to engage in communication, ensuring the company’s success altogether. 

For instance, a company’s marketing department should’ve gotten the same amount of information as its research department. This can only be achieved if departments communicate effectively with each other. 

8. Promotes Productivity Among Employees

86% of employees think that their performance and productivity are highly influenced by effective business communication. How? Because when employees are well informed, tasks become hassle-free for them. 

However, employees with less or zero information search for it and, therefore, leaves less time for them to work on the task. 

9. Eradicates the Existence of Information Silos

Information silos exist when one or more departments in an organization try operating in isolation and avoid sharing information with other departments. This can give rise to several problems, including missed opportunities, synergy, and duplication of efforts. 

To get rid of information silos, effective business communication is crucial. When there is proper business communication within the organization, information reaches the employee quickly and does not get lost. 

10. Saves Time by Eliminating Email Overload

Emails are considered a great communication tool in organizations. It is used for many tasks, including information alerts, notices from HR on various team activities, document distribution, meeting invites, communication with customers and suppliers, task assignments, status reports, employee communication, feedback, information requests, etc. more. 

According to a study, a worker uses up about 25 percent of the work hours to do tasks related to email. In addition, only a few emails are essential, and finding them becomes quite time-consuming when the inbox is full of irrelevant emails.

 Business communication helps the employee to address these issues. This enables the company to employ tools to eliminate this problem and encourage employees to work productively. 

11. Engage Employees

A study suggests that employee engagement is highly influenced by communication. Companies that have teams explicitly employed for business communication are more likely to have reached the heights of massive success. 

Given how such teams coach and support the employees and keep reminding them of the significance of communication, it showcases the importance of engaging employees and bridging communication gaps between them and the management. 

12. Increases Company’s Ability to Innovate

Innovation being a completely collaborative procedure, demands employees to communicate together and give rise to innovative ideas and better solutions. Therefore, when there is effective business communication within the company, employees don’t shy away from sharing ideas and suggestions. 


Business communication should exist within an organization because it ensures that all employees perform well without hassles. It also reduces confusion among the employees, and all departments are on the same page for various tasks. All of these contribute significantly to the success, productivity, and growth of the company.

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