40+ Communication in Workplace Statistics & Facts Decoded [2024]

December 13, 2023 0 Comments

Ever wondered how communication shapes workplace success?

How important is it to maintain good communication in the workplace?

Companies lose $11k per year per employee due to miscommunication and employees feel 5x more productive if workplace communication is supportive. 

So, it is evident that effective communication in the workplace is pretty important for both employees and employers. 

While the medium of communication has changed in modern times, with only 7% of employees wanting face-to-face interaction for work instructions with their managers, good communication is still the key to workplace success. 

Let’s dive into compelling Communication in Workplace Statistics to redefine team dynamics and elevate your workplace connections.

Top Communication in Workplace Statistics: Editor’s Pick

93% of communication in the workplace is non-verbal
  1. Employees who feel included in workplace communication are 5x more productive. [1]
  2. Engaged employees are 17% more productive than their peers. [5]
  3. 30% of employees admit that miscommunication has lowered their professional confidence. [3]
  4. Companies with 100,000+ employees lost $62.4 million per year to miscommunication. [14]
  5. Employees spend up to 17 hours per week clarifying misunderstandings caused by miscommunication. [15]
  6. 69% of managers are not comfortable communicating with their employees. [20]
  7. 32% of workers admit to using three or more workplace communication devices. [12]
  8. 86% of business leaders have a dedicated budget focused on improving communication in their organizations. [16]
  9. Baby boomers and Gen Z prefer face-to-face communication, while Gen X and millennials want to go with messaging. [13]

Benefits of Effective Communication in Workplace

Effective communication helps to improve productivity, engagement, and retention in an organization. 

Let’s take a glance at the statistics!

Employees who feel included in workplace communication are 5x more productive. [1]

72% of business leaders believe effective communication has increased their team’s productivity, and 52% of knowledge workers agreed. [3]

60% of business leaders agreed that effective communication increased employee confidence. 56% of 1,001 surveyed knowledge workers claimed that it also increased work satisfaction. [3]

Effective communication improves employee engagement, resulting in an increase of 2% from 20% in 2020 to 23% in 2022. [4]

Engaged employees are 17% more productive than their peers. [5]

79% of employees are more likely to stay at a job where they feel supported, cared for, and valued. [7]

74% of employees agreed to work for a trustworthy employer who includes them in the communications and decisions affecting them. [8]

Consequences of Poor Communication in Workplace Statistics

Curious about the impact of communication at work?

Miscommunication or lack of communication can bring serious repercussions for an organization. 

Let’s go through the major consequences of poor workplace communication according to employers and business leaders:

Consequences of Poor CommunicationPercentage of Employers Who Agree
Decrease in productivity43%
Missed deadlines and extended timelines42%
Financial losses38%
Wastage of time68%
Missed messages lost files53%
Burnout, stress, fatigue42%
Bad customer experience30%
Lost customers12%
Lost employees10%

According to a Grammarly report, poor communication increases stress and employee attrition, resulting in a decrease in job satisfaction for 34% of employees. [3]

30% of employees admit that miscommunication has lowered their professional confidence. [3]

According to Microsoft’s 2022 work index, 43% of employees were somewhat or extremely likely to change jobs in 2023 because of poor workplace communication. [6]

48% of Gen Xs believe that stress would impact their work performance, while 43% admitted that seeing visibly unhappy employees would make them lose interest in joining a company. [8

Is there a way to establish a healthy connection with your employees? Yes!! Improving workplace communication.

93% of business leaders and 80% of knowledge workers agreed with the statement,” Their ability to work was strongly contingent on how well their collaborators could express their needs.” [3]

86% of corporate executives agree that ineffective communication is a major reason behind workplace failures. [9]

Cost of Bad Communication in Workplace

companie lost $11k per year per employee due to mis communication

Along with professional losses, poor communication also has financial losses.

Companies with 100,000+ employees lost $62.4 million per year to miscommunication. [14]

Do small companies face such big losses too?

Yes. Poor communication costs a lot of money regardless of the size of the company.  

Companies with 100 or fewer employees have reported losing about $420k per year. [14]

46% of businesses admit to losing clients to poor communication, causing a loss of about $75 billion per year. [15]

The fact that a loss of $400k could easily bankrupt a small business proves how critical it is to improve communication in the workspace. [15]

Employees spend up to 17 hours per week clarifying misunderstandings caused by miscommunication. [15]

Improve Communication in Workplace

Now you are curious to know ways to improve communication in your workplace, right?

Let’s dive in!

86% of business leaders have a dedicated budget focused on improving communication in their organizations. [16]

New communication has been used by 61% of leaders within the past 12 months. And a majority of workers have even started using these new communication tools. [16]

85% of employees admitted that they feel motivated leaders include them in company communication and share new updates. [16]

Companies with a lack of proper communication, admit that 41% of employees do not feel valued at work. [10]

Employees feel more engaged and productive, if managers communicate with them effectively, treat them respectfully, and make their work feel valuable.

73% of employers recognize good communication skills as a crucial quality for new hires to improve overall workplace communication. [11]

Remote Work Communication Statistics

It is surprising to note that employees feel more connected during remote working during Covid than regular office workers. 

According to the Connected Culture Report 2020,  71% of employees admitted to feeling more connected to their colleagues after shifting to remote work in Covid. [2]

14% of remote workers faced the issue of different time zones. [17]

11% of workers admitted to facing difficulties with unplugging from work and staying motivated. [17]

In another survey in 2021, 54% of respondents admitted that remote work had no impact on their business communication, while 21% claimed remote work made communication somewhat difficult. [17]

6% of employees admit that workplace communication has become very difficult for them in remote work. [17]

12% preferred remote work communication over office communication. [17]

remote work communication

Company Communication Policy Statistics

Companies are implementing effective communication policies.

64% of companies believe that communicating strategy to employees is a key priority. [20]

95% of employees don’t understand their company’s strategy and even find it difficult to understand their job roles and instructions. [20]

60% of companies don’t have a long-term communication plan aligned with the company’s goals. [20]

69% of managers are not comfortable communicating with their employees. [20]

Preferred Types and Medium Communication in Work Statistics

93% of communication in the workplace is non-verbal. [18]

In the popular Mehrabian research, the author suggested that body language makes up 55%, while tone of voice makes up 38% of non-verbal communication in the workplace. [18]

85% of surveyed people believe that eye contact is an important part of communication, while 70% said facial expressions impact business communication. [18]

factors affecting effective communication

Major Mediums of Communication in Workplace

  • 85% of employees admit to using more than one communication device at work. [12]
  • 32% of workers admit to using three or more workplace communication devices. [12]
  • 82% of employees prefer written text messages over voicemail. [12]
  • 31% of employees prefer emails for internal communication in an organization. [19]
  • Only 7% of employees want face-to-face interaction for work instructions with their managers. [12]
  • Baby boomers and Gen Z prefer face-to-face communication, while Gen X and millennials want to go with messaging. [13]
Tools Used for Effective Internal Communication

FAQs

How much time is spent in workplace communication?

Employees spend approximately 29% of their time on communication in the workplace. Approximately two and half hours in an eight-hour work day, even counting up to 17 hours per week clarifying doubts.

Approximately 70% of workplace issues are communication-related. According to research by US firm Garter, poor communication results in major workplace problems that can easily be avoided.

Yes, employee productivity and effective communication are related in the workplace. Effective communication results in increasing employee productivity by 72% and employee confidence by 60%.

Conclusion

Effective communication in the workplace is a necessary trait to provide a cooperative work culture for the employees. It not only improves their confidence and engagement but also helps employers save millions of dollars per year on miscommunication and productivity.

Employers also need to work on non-verbal communication as it makes up 93% of business communication. Today companies are looking forward to hiring candidates who possess good communication skills. So, it is crucial for employees to improve their communication and for employers to implement strategies to improve workspace communication for growth and development.

Sources

  1. McKinsey & Company. The social economy: Unlocking value and productivity through social technologies
  2. Pumble. Remote Work Statistics 2023
  3. Grammerly business. The state of business communication
  4. Gallup. State of the global workplace: 2023 Report
  5. Gallup. The damage inflicted by poor managers
  6. Microsoft. Great Expectations: Making Hybrid Work Work
  7. The Achievers Workforce Institute. 2023 Employee Engagement and Retention
  8. Workforce Institute. Gen Z employee experience
  9. Fierce. 86 Percent of Employees Cite Lack of Collaboration for Workplace Failures
  10. Achievers. Belonging at Work 2021 Culture Report
  11. Inc.com. strong written communication skills
  12. Cmswire. more than one communication device
  13. Bank Mycell. Generation mute: Why do millennials hate phone calls (2022) 
  14. SHRM. The Cost of Poor Communications
  15. Forbes. Businesses Lose $75 Billion Due To Poor Customer Service
  16. Forbes. Workplace communication: It’s now more important than ever
  17. Global workplace analytics. Work at home after covid 19 our forecast
  18.  Businesstopia. Verbal versus Non-verbal Communication
  19. Trade Press Services. Using Internal Communications to Enhance Business Growth
  20. Chron. Importance of Communication in the Workplace