Poor workplace communication drives most organizational failures, but there’s a straight line from effective communication to revenue growth. Exploring and leveraging these connections empowers leaders and teams to invest strategically in professional development and organizational success.

How Good Communication Widens Margin

Here’s some of the most compelling data we’ve seen on how good communication drives revenue:

• Higher Employee Retention: Companies with a culture of communication have 4.5x higher retention rates and 12x higher job satisfaction rates than those that don’t make it a priority. Higher retention rates reduce costly turnover, keeping margins wider and organizations thriving (Soocial). 

• Greater Job Satisfaction and Productivity: When leaders communicate well, employees are 2.8x more likely to be engaged, and business[es] that have engaged workers report 23% higher profits (Harvard Business Review).

• Customer Loyalty: 48% of sales leaders say personalized outreach boosts customer retention. Those loyal/repeat customers are likely to spend significantly more than new ones (The Sales Collective, Business2Community). 

One Shift That Makes a Difference

Much ink has been spilled on improving communication: the steps you can take, the things you can try, the habits you can adjust. But let’s simplify. There’s one shift leaders can make to impact revenue for the better: invest time and resources in workplace communication.

According to Towers and Watson’s study on change and communication ROI, “Organizations with strong communication practices are 3.5x more likely to outperform their peers, and high-performing communicators drive 47% higher total return to shareholders”. 

Translation? 

For Good Returns, Make Sound Investments

It stands to reason. Seeing the kind of returns we’re talking about requires some investment. Senior leaders who are ready to shift their focus to strengthening organizational communication should allocate time and resources accordingly. 

Sound investment begins with a strategic approach. Here’s what that could look like:

• Look Inward: You don’t have to start with a company-wide overhaul. Begin with your own routine.  
  • What’s your self-talk like? 
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  • How do you communicate with your team, your peers, or those you report to? 

You may be able to make some effective adjustments right away. 

• Gather Data: Gathering both qualitative and quantitative data can pinpoint performance gaps and opportunities to improve. 
  • Qualitative: Are you losing customers, or closing fewer sales than you expected? It might be prudent to check your external comms. Are projects slowing down between departments, or among your team? Internal communications may need a refresh.
  • Quantitative: Numbers are great, but they aren’t everything. Talk to your team and your colleagues. Get their feedback and insights on what’s going well, and where things could improve. 

Bonus: Doing this groundwork makes it easier to accurately evaluate success when it’s time to make changes.

• Review, Improve, Repeat: Review what you’ve learned and decide what to work on. Plan for incremental checks to make adjustments or change course as needed. During follow-up, decide where to adapt. See how well these changes work for you and your team, and keep moving forward together.

As you hone and repeat this process of evaluation, adaptation, and collaboration, you’ll see firsthand how investing in communication makes a difference for your bottom line. 

Communication Isn’t a Soft Skill, So Let’s Begin Treating It Like the Wonderful Asset It Is.

The data is clear: organizations that prioritize communication outperform those that don’t. You see it show up in retention, engagement, and revenue. But knowing the data and knowing where to start are two different things.

If you’re ready to move from awareness to action, Willow North works with leaders and organizations to strengthen communication at every level, from the executive team to the front line.

Let’s talk about what that investment could look like for your organization.