AIB Blog

6 Reasons Why Effective Communication Should Be a Focus in Your Business


Communication plays a fundamental role in all facets of business. It is therefore very important that both internal communication within your organisation as well as the communication skills of your employees are effective. The following six reasons will explain why effective communication should be a focus in your business:

1. Builds and maintains relationships

Relationships are built and can be maintained by positive encounters with others. Communication will be key to this process – without effective skills, it will be difficult to properly construct and foster productive relationships.

2. Facilitates innovation

When employees feel comfortable in openly communicating new ideas, cooperation and innovation will be at an all-time high. In addition, if staff are unable to convey their ideas due to limited communication skills, it is likely that the idea will not be implemented to its full potential.

Read more: Why Brainstorming Is a Crucial Element in Business

3. Builds an effective team

If open communication within a workplace is encouraged, a more cohesive and effective team will emerge. Good communication within a team also tends to boost employee morale. When employees feel that they are well informed of the company’s direction and vision, they will feel more secure within their role. Regular internal communication can also lead to an improved work ethic if staff are reminded of achievements and feel that they are working towards a common goal.

Also read: 4 Ways to Build Better Relationships at Work

4. Managing employees

When managers are effective communicators, they are more able to inform staff adequately of their responsibilities and what is expected from them. Good communication skills also helps managers to provide constructive feedback to their staff, build better relationships, and understand personal goals that staff may wish to work towards.

5. Contributes to growth of the company

A lack of communication can lead to the collapse of any organisation. Whilst that is a bold statement – without proper marketing collateral and communication internally and externally, most organisations will struggle to survive. Communication can also lead to productivity and helps to avoid unnecessary delays in the implementation of policies.

6. Ensures transparency 

When regularly communicating both internally and externally, organisations remain more transparent. This is important in building trust in your brand, in your services and also internally when it comes to the trust that employees have in higher management. Tony Deblauwe from Examiner adds that ‘when tough decisions need to be made, transparent leaders will have an easier time explaining why’.

Also read: The Importance of Face-To-Face Communication in the Digital Age

What do you think?

Do you have any suggestions that can be added to this list? I would love to hear how you or your organisation approaches communication. Is it overlooked as an area of professional development, or is there a focus on it? Feel free to share your experiences in the comments section below.

This article was written by Laura Hutton on behalf of the Australian Institute of Business. All opinions are that of the writer and do not necessarily reflect the opinion of AIB. The following sources have been used to prepare this article: Examiner

The AIB MBA whileyouwork

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13/10/2017 5:09 AM

Great article,very insightful!

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30/10/2017 11:27 PM

thanx a lot

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02/11/2017 9:20 PM

Such a great article..

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Tom T
03/12/2017 12:34 PM

Effective leaders with good communication skills will have an easier job of explaining, thus making transparency more clear.

Good article.

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17/04/2018 6:03 PM

Yes, your communication could be conclusive if we will start focusing on these basic 6 points and that will surely improve relations with customers and clients as many businesses are using the virtual phone numbers for communicating and expanding their network, could improve their relations and business output.

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28/12/2018 10:40 PM

such an good article.

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08/02/2019 5:22 PM

GREAT ARTICLE,most people don't realize the importance of communication.