PHWP: Abstract Detail: Secrets of top performers: How companies with highly effective employee communication differentiate themselves

Focuses on the role of effective communication in firm performance. The results of the Watson Wyatt study indicate that effective communication includes nine key activities. At its foundation, effective communication (1) follows a formal process, (2) uses employee feedback, (3) integrates total rewards, and (4) leverages technology. At the strategic level, effective communication (5) facilitates change, (6) focuses on continuous improvement, and (7) connects to the business strategy. Finally, at the behavioral level, effective communication (8) drives managers’ behavior and (9) drives employee behavior. The study indicates that all nine are significantly associated with firm performance. Furthermore, companies with effective communication mechanisms provided 91% total return to shareholders (TRS) during the period of 2002 to 2006. This compares favorably to the 62% TRS for firms with the least effective mechanisms. Finally, effective communication mechanisms are four times as likely to result in high employee engagement than are ineffective communication mechanisms. These and other results are highlighted and discussed in the report. The general conclusion is that effective communication mechanisms are important in creating a healthy work environment, an engaged workforce, and a financially successful organization.

Watson Wyatt Worldwide (2007, December). Secrets of top performers: How companies with highly effective employee communication differentiate themselves. Retrieved December 10, 2007, from www.watsonwyatt.com.