Benchmark Study of Leading Companies Establishes Quantitative Link Between Effective Employee Communication and Higher Earnings per Share

Robust internal communication within large organizations is a significant predictor of higher earnings per share, according to the 2013 ROI Communication Benchmark report, a study released January 29, 2013.

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“In a competitive marketplace, truly engaging your company’s employees—earning their trust, enabling their best work and inspiring their loyalty—isn’t a luxury anymore. It’s a business imperative," said Barbara Fagan-Smith, CEO of ROI Communication.

Scotts Valley, CA (PRWEB) February 12, 2013

Robust internal communication within large organizations is a significant predictor of higher earnings per share, according to the 2013 ROI Communication Benchmark report, a study released January 29, 2013.

Conducted by ROI Communication, a Silicon Valley-based consulting firm, the benchmark surveyed 98 leading global companies about their internal communication practices and culture, and analyzed the results in relation to their publicly reported financial results. Analysis revealed that:

  •     An open communication culture, deeper trust and engagement, and senior leader credibility all predict higher earnings per share.
  •     A bigger employee communications staff predicts a more open communication culture, which predicts higher earnings per share.

The study also identified challenges – including the fact that:

  •     Few managers understand their roles as communicators.
  •     Few companies evaluate leaders and managers on communication effectiveness.
  •     Few companies provide their leaders and managers with meaningful training in communication.

“Many executives fail to realize the true impact that employee communication has on the bottom line,” said Barbara Fagan-Smith, CEO of ROI Communication. “In a competitive marketplace, truly engaging your company’s employees—earning their trust, enabling their best work and inspiring their loyalty—isn’t a luxury anymore. It’s a business imperative.”

About the 2013 ROI Communication Benchmark
To conduct the survey, ROI Communication contacted senior leaders responsible for employee communication at 697 companies on the Fortune 500 and Global 500 lists and privately held firms with estimated annual revenue of at least $4 billion. Nearly 25% of those contacted registered for the survey, and 98 firms submitted complete, certified answers to the 60-item survey.

The study – which will be conducted annually – explored performance in the three areas critical to effective employee communication: Communication Infrastructure, Leader and Manager Communication, and Open Communication Culture. Researchers then tabulated the results of this survey and analyzed it in relation to participant companies’ financial performance.


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