Why Internal Communications Is Crucial For Employee Engagement

Imagine your work environment is filled with positive, proactive employees who are constantly innovating and developing their skills. Employee engagement is likely sky-high in this type of organization.

So, how do you achieve the same levels of engagement in your workforce? Numerous factors influence whether employees feel connected and motivated in their role, team, and company. However, effective and consistent internal communication is one of the most important.

What Is The Intersection Between Internal Communications And Employee Engagement?

Picture the relationship between internal comms and employee engagement like this. Your organization's internal communications are like the root system of a tree, which distributes vital water and nutrients to every branch and leaf. In the same way, your company leaders must collate important information, insights, and feedback and share them with your employees.

When the root system is strong and healthy, the tree grows tall, but if your roots are weak and tangled, the tree struggles to thrive. Continuing the analogy, when communication flows effectively, you can expect engaged, productive workers, while poor or absent messaging leads to confusion, frustration, and disengagement.

To better understand the state of communication and engagement, we surveyed a group of employees. We asked employees to rate their company's overall communication and the employee engagement at their organization.

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Of the 33.7% of employees who rated their organization's communication as excellent, 79.5% rated engagement at their company as high or extremely high. Conversely, for the 16.6% who rated communication as fair or poor, only 7.8% rated engagement highly. Going deeper, 50.6% rated their engagement as average, and 41.6% rated it low.

The results show that organizations excelling in communication tend to have higher employee engagement. Top-notch communication keeps employees well-informed about their roles in a larger organizational context.

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How Does Internal Communications Boost Employee Engagement?

Employee engagement is an integral part of company culture and it’s important to measure in its own right. However, it also has an impact on other areas of business; for example, when employees are engaged at work, they're more likely to be productive and remain loyal to their employer. 

For this reason, Nectar asked our survey respondents, “Do you believe that regular communication and updates from company leaders positively impact the following business areas?”

Employees thought that internal communication had the most significant impact on company culture (93%), employee morale (91%), and employee engagement (89.7%).

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What Are Communication Engagement Strategies?

Company leaders can use the following communication strategies to improve employee engagement:

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1. Select The Best Internal Communication Tools

Employees will only feel connected to your messaging if they’re accessing it at the right time and on the right platform. Nectar's research revealed the top tools that organizations use for internal communication are email, Microsoft Teams, and internal newsletters.

The best organizations focus on a multi-channel distribution model. Email is still the best-used internal communications tool, but if you can add other methods like text, chat tools like Slack/Microsoft Teams, and even in-person meetings, you can create a more effective internal communications strategy.

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2. Create A Dedicated Internal Communications Team

It’s much easier to design an effective internal communications strategy if you have a specific group of managers and communications experts to take ownership of this task. People on this team may be involved in: 

• Setting goals for your communications policy, such as wanting to increase employee retention or engagement by X% over the next year 
• Monitoring how effective your strategy is 
• Enforcing aspects of your communications strategy, such as reminding managers to deliver timely feedback or use a specific platform

Interestingly, our research also identified that employees crave communication from a single point of contact. Here are some personal opinions lifted from our study: 

• “Communication should be coming from one person and not multiple people. Each of them has their opinion about certain topics which affects the way the news is relayed.”
• “I would like one person to oversee the information delivery and make sure there are no gaps in shared information.”

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3. Identify Communication Barriers

Even the best-run companies come up against communication blockages that prevent messages from being shared effectively throughout your teams and ranks. We asked employees to select the biggest internal comms challenges they face—the top challenges mentioned were: 

• Limited opportunities to give communication feedback
• Too many messages or information overload
• Lack of transparency

Identifying these challenges in your own team are crucial because then you can invest in tools and policies to address these situations, which will, in turn, create a more engaging experience for your team.

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4. Encourage Leadership Communication

Employees want to know that the company is secure and that they're appreciated for their role in its success. These messages often carry more weight and authority when they come from leadership.

Companies can use town halls and pre-recorded videos to deliver helpful messages from senior leaders. Give your employees a chance to respond, ask questions, and share their thoughts via email or in person to ensure this experience feels genuine and helpful for them.

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Nectar Tip: Include Positive Recognition In Your Leadership Communication
When your leadership team communicates, include recognition and praise for your team. It only takes a few minutes to acknowledge employees who were instrumental in what you are announcing or to thank the entire organization.

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What is the result of recognizing your team when communicating? Increased engagement. When communication from leadership included recognition always or often, 70.3% of workers shared that their organization was highly engaged. On the other hand, when communication from leadership rarely or never included recognition, only 6.9% of employees shared that their team was highly engaged.

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5. Prioritize Transparency

Providing your workforce with open, honest communication about what's going on behind the scenes in the company can enhance the employee experience immeasurably. Nectar's research uncovered several themes relating to transparent communication. Our respondents want: 

• “Short, concise messages that are transparent so we are not left making assumptions about decisions made in the "interest" of the organization and our clients.”
• “Everyone to be aware of what is going on, including any disciplinary action or resulting consequences.”
• “Increased transparency in decision-making processes and better alignment between departments.”

Christopher Pappas, founder of eLearning Industry Inc., shared some of the ways that his company committed to transparent internal communications:

“One strategy we use is our monthly “Open Floor” meetings. In these sessions, every team member can voice their thoughts, share ideas, and ask questions directly to leadership. This approach promotes transparency and makes employees feel valued and heard.

‍Additionally, we’ve implemented a digital platform where employees can share their successes and challenges in real time. This platform encourages peer-to-peer recognition and collaboration. For example, one of our developers shared a challenge they faced with a new software feature, and within minutes, colleagues from different departments offered solutions and support. This instant communication and problem-solving boost morale and engagement, showing employees that their contributions are impactful and appreciated.”

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Want to see Nectar’s internal communications tool in action? Request a demo.

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6. Make Communication Digestible

There’s an obvious problem with providing transparent communication—if employers commit to telling their people everything, the volume of content can quickly overwhelm. For this reason, Nectar’s survey respondents revealed that:

• They wished their communication was more summarized to make key information easier to understand 
• They often receive long emails with too many details that are tedious to read
• Emails with key points summarized at the top are a great compromise between providing the main points and a longer version for those who want to get into the weeds.

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7. Conduct Employee Surveys

Regularly checking in with your employees and taking their pulse on internal communications can pinpoint areas of improvement and address any concerns before they escalate. Surveys are an effective way to gather this feedback, as they offer a confidential and anonymous vehicle for employees to express their thoughts.

Jessica Bane, Operations Director at GoPromotional, reminds us that collecting employee insights is merely the first step. The real magic happens when employers commit to the follow-up: 

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“Engagement surveys are great, but they have to lead to real action. At GoPromotional, we don't just conduct surveys and shelve the results. We create actionable plans based on the feedback. This involves setting clear objectives and timelines for any major issues highlighted. For example, if employees voice concerns about career development, we implement targeted training programs or mentorship opportunities.”

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8. Provide Robust Onboarding Communication

There’s no better point during the employee lifecycle to commit to strong communication than welcoming new hires to the company. During onboarding, employees rely on clear, organized information so they can quickly:

• Immerse themselves in the company 
• Meet their team, manager, and key personnel 
• Understand their role and how it contributes to the overall business 

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Axel Lavergne, Founder of SaaS company Reviewflow, explains what onboarding communication looks like in practice: 

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“Our program includes a series of interactive workshops and welcome messages from key leaders that introduce new employees to our culture, values, and strategic goals. By integrating new hires into the company with clear and consistent communication from day one, they feel more connected and valued.

We also pair them with mentors who can guide them through their initial months, ensuring they have support and feel part of the team. Regular check-ins and feedback sessions are built into this program to address any concerns and make them feel heard. This structured approach has significantly improved our employee retention and engagement rates. It ensures new employees quickly become enthusiastic and productive members of our team.”

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9. Lean On Storytelling

Internal communication comes in all shapes and sizes. Instead of relying solely on stale, formal statements from the C-Suite, some companies are injecting their communications with a heavy dose of storytelling to make messages more relatable and memorable. Lucas Botzen, HR expert and CEO of Rivermate, explains:

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“Sharing success stories—be it a well-done project or personal achievement of the employee—forges a sense of community and belonging and pride for the organization. These stories recognize not only individual and team achievements but also endorse the values and culture of the company itself. The very reason employees are more likely to engage with communications that really give them a sense of personal connection is something that has really helped to entrench the practice within our organization.” 

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Matt Little, Founder and Managing Director of Festoon House, also agrees with the power of this type of messaging:

“Think about it—we all remember stories, not facts and figures. Instead of bombarding employees with company updates and initiatives, we need to start sharing stories that showcase our people, their experiences, and their passions. It's about creating a sense of belonging and connection among employees, and that's where storytelling comes in.

You might be wondering, "How do we translate this into action?" Well, we can start by creating employee ambassadors who can share their stories and experiences through various channels, like video testimonials, blog posts, or even internal podcasts. We can also use existing communication channels like company-wide emails or intranet articles to share these stories.”

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10. Elevate Team Members

Part of this storytelling is to raise the profile of certain staff members, which can engage peers toward similar professional growth. Jon Morgan, CEO of Venture Smarter, outlines what this looks like at his company: 

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“A key approach we employ to enhance employee engagement is our "Employee Spotlight" series. Essentially, I use our internal comms channel to highlight one team member each week, sharing their story, accomplishments, and current projects.

I ask them fun questions like their favorite hobby or what they're currently reading, which helps build a sense of community and connection across teams. For instance, I've discovered that one of our software engineers has a flair for music, and another team member is deeply passionate about environmentalism. This has opened doors for cross-team collaborations and support for personal interests outside the workplace. Through these stories, my goal is to cultivate a culture of empathy, inclusivity, and appreciation, making every team member feel a part of something meaningful."

11. Strengthen Team Relationships

Nectar’s workplace connections study reported that 69.5% of employees would be happier if they had deeper connections with their colleagues. Internal comms teams can strengthen these essential bonds by providing effective feedback loops and team building activities which make employees feel more connected. 

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Keith Donovan, a seasoned startup advisor and founder of Startup Stumbles, shares his experience of combining communication with team building to boost overall engagement: 

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“Focusing on building camaraderie and finding fun ways for introverted and extroverted personalities to engage made a big difference. Communications are about more than just sharing news—they’re about bringing a team together even from afar.

While at a marketing agency, we held virtual games and contests to help our remote employees feel more connected. One that was popular was an online scavenger hunt where people had to find weird objects in their homes and take a selfie. It helped lighten things up.

‍Another strategy we used was celebrating personal milestones. Since many of my coworkers have kids, whenever a kid got into college or had a birthday, we made sure to send a card or small gift from the whole team. People really liked feeling like their lives outside of work were recognized too.”

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12. Incorporate Recognition Into Communication

Internal communication channels are an excellent opportunity to share praise and appreciation for each employee's work.

Our survey respondents were clear this is a strategy they would like to see in their respective organizations, with one person explaining why recognition is an important way to boost inclusivity:

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“I would like to see more employee recognition, specifically employees that may be considered lower levels. It seems like most recognition is done for people who are high-ranking, salaried employees within the organization that aren't really in touch with the majority of the workforce.”

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How Often Should We Communicate To Improve Engagement?

It can be challenging for leaders to find the sweet spot between overwhelming their workforce with too much information and providing enough communication for them to trust the company.

We asked the following questions to help you find the right balance in your organization—as you can see, weekly communication appears to be a strong starting point. 90.4% of the employees we surveyed confirmed that their engagement levels directly relate to regular communication. Most employees (41%) agree that weekly strategic updates are needed to maintain high engagement levels.

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Elevate Internal Communications With Nectar

Nectar provides a suite of rewards and recognition features to complement your internal communications strategy. Here’s how you can use our tools to boost engagement in your company:

• Internal Communications: Quickly design and send beautiful internal emails with our drag-and-drop editor. Use multi-channel distribution to disperse information where your employees spend their time (Email, Microsoft Teams, SMS, and more).
• Recognition: Peers and managers can communicate messages of praise to each other in the internal Nectar feed, complete with redeemable points attached. 
• Rewards: Employees can exchange their Nectar points for various rewards, including Amazon products, gift cards, company swag, charity donations, and custom rewards. 
• Milestones: Each employee receives a celebratory message on their birthday and work anniversary, all automated so managers never miss communicating with a team member on their special day. 
• Challenges: Managers can set up customizable challenges relating to growth and development, health and wellbeing, compliance, or anything else. Employees receive points and shoutouts for participating in these challenges. 
• Nominations: Peers and managers can nominate each other to win public accolades, such as Employee Of The Month.

Ready to raise engagement in your organization? Commit to stronger internal communications by booking a free Nectar demo today.