Effective communication plays such a vital role in all aspects of life, especially in the workplace. When dealing with the concept of communication and employees in the workplace, effective communication provides two very important functions. The first being the understanding of the employee of what their job tasks are, and the second is to build trust and a sense of camaraderie. Without good communication, it is all too common for employees to become isolated and confused, creating a breakdown in the sense of personal responsibility, and a downgrade in employee job performance, which can leave the company’s goals stagnate.

When company goals aren’t being met, this clearly leads to poor company presentation, further leading to a loss in demand and production. One of the specific, negative financial effects would be increased employee turnover and absenteeism, because people don’t want to go to work, or continue to work in a place where they don’t feel like they matter. This can create a domino effect and lead to poor customer service, bumpy management changes, failure of project delivery, increased workplace injuries, increased litigation fees and, finally, lower shareholder return.

There are many other negative financial effects of ineffective workplace communication, but this is enough of a downer — There are also some concepts and financial positives of effective communication. What does positive workplace communication entail? Well, the first, and probably the most important, element is effectively communicating job roles and tasks to employees. Employees want to know that they are an important part of something, and not just a replaceable number or robot. Letting them know what is expected of them and regularly praising them is vital to employee performance and workplace production. Making these roles clear, and being aware of nonverbal communication is also important.

Allowing a sense of teamwork is also vital. When employees feel a sense of responsibility, and that everyone else is depending on them, it helps to boost moral. An online timecard software also helps develop a sense of personal responsibility, as we all want to feel like grown ups in our own way, and not children, being told what to do on a consistent basis, so room for personal freedom is very important as well. Surveys, allowing feedback and suggestions, are another great form of feedback on operations and production. Effective communication can save a substantial amount of money and, depending upon the size, make or break the company.