Poor Communication Has a Huge Financial Impact
August 17, 2016
It would likely not surprise you that poor communication can lead to poor customer service, higher turnover rates, increased delays in product or project delivery, or even lack of trust between managers and workers, but it might surprise you to learn that according to the Mitchell Communications Group, poor communication in the workplace costs businesses a whopping $37 billion, yes that’s BILLION.
The award-winning PR firm with locations across the globe drilled down even further to note that poor or ineffective communication costs companies $26K per employee!
These numbers are not insignificant. Over a ten-year period, this equates to greater than $250K loss. Of course that number will not appear as a line item on the balance sheet, but it represents a real loss when it comes in the form of legal expenses, HR costs to hire a new employee, or loss of revenue due to a later than projected product launch.
Think about $37 billion next time you write an email or draft a proposal.