4 Nov 03 @ 6:03 pm
The Impact of Communication on Shareholder Return and Employee Turnover
HRNext reports today of a recent study from Watson Wyatt that links effective internal communication with increases in shareholder return and reductions in employee turnover. Data was gathered from 267 companies.
bq. “The survey results clearly demonstrate that the better a company has communicated with its workers, the better its shareholder returns have been,” said Kathryn Yates, one of the study’s co-authors. “The bottom line is that employee communication is no longer a `soft’ function but rather a business function that drives performance and contributes to a company’s financial success.”
Key findings include:
* A significant improvement in communication effectiveness is associated with a 29.5 percent increase in market value.
* Companies with the highest levels of effective communication experienced a 26 percent total return to shareholders from 1998 to 2002, compared to a –15 percent return experienced by firms that communicate least effectively.
* Organizations that communicate effectively were more likely to report employee turnover rates below or significantly below those of their industry peers.
posted in category(s): Points of Interest
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