Money down the drain: The Financial Costs of Poor Communication

Good communication skills are an important part of any successful business, from customer service to employee direction and interaction. The result of miscommunication can have a staggering effect on a company’s bottom line.

David Grossman reported in his article “The Cost of Poor Communications,” a company with 100, 000 employees averages a loss of $62.4 million yearly due to inadequate communication to and between employees as  

In a separate article, “Top Ten Email Blunders that Cost Companies Money” by Debra Hamilton, she found that miscommunication costs companies of 100 employees an average of about $420,000 per year.

Good communication skills are an important part of any successful business, from customer service to providing direction to employees. The result of miscommunication can have a staggering effect on a company’s bottom line.

David Grossman reported in his article “The Cost of Poor Communications,” a company with $100,000 employees averages a loss of $62.4 million annually due to inadequate communication among employees.

In a separate article, “Top Ten Email Blunders that Cost Companies Money” by Debra Hamilton, it was reported that miscommunication costs companies with greater than 100 employees an average of $420,000 per year.

In a separate article, “Top Ten Email Blunders that Cost Companies Money” by Debra Hamilton, she found that miscommunication costs companies of 100 employees an average of about $420,000 per year.

Financial Consequences of Poor Communication

Poor communication can lead to a breakdown in relationships and services that lead to:

• Poor customer service and dissatisfied customers
• High-stress levels and low employee morale, which can affect productivity and lead to missed deadlines
• Higher than average employee turnover rates
• Loss of your company’s credibility
• A decline in sales and/or stock value

How to Turn Losses into Financial Gains

Investing in communication skills training and putting best practices into place can change the outlook for your business and have a positive effect on your company’s financial status. Here are a few ways to improve communication skills in your business.

1. Practice active listening skills. Make sure you’re paying attention to the ideas and concerns of employees and peers.
2. Write out job and project descriptions clearly, rather than relying solely on verbal communication. Then be sure to check in often to make sure your employees understand their job and things are progressing on track.
3. Be respectful in your communications. Make sure your tone and body language are effective in getting your message across.
4. Present information logically and supplement verbal content with visual tools to help get your message across.
5. Practice good general speaking skills, such as keeping a good pace with your speech, enunciating clearly, and asking questions of your listener to make sure you were understood.

Remember, communication is a skill that can be improved with strategic instruction and practice. Triad Speech Consultants can work with you and your company to help improve communication skills and provide best practices. Schedule a free 30-minute consultation to learn more about our services.