HR Communication Strategy: Best Practices and Benefits

Did you know that miscommunication costs US businesses $1.2 trillion annually? (Grammarly) Poor communication not only causes friction in an organization, but it can have detrimental financial impacts as well. 

Here, we’ve compiled an HR communication best practices guide to help you foster a more productive and engaged workforce – supporting your people and your bottom line.

We’ll explore stats, strategies, and considerations for you to design your own employee communication plan and ensure goals are met.

What Is HR Communication?

HR communication encompasses the exchange of information between the HR department and potential candidates, new employees, and existing ones. 

A prominent goal of effective HR communication is to ensure clear understanding and alignment between HR and the company workforce. 

Effective HR communication directly impacts employee engagement and productivity. When employees are kept “in the loop” about company goals, progress, and individual contributions, they feel a sense of purpose and ownership. 

This fosters a more engaged workforce that is motivated to go the extra mile, ultimately leading to increased productivity and better results.

Eye-Opening HR Communication Statistics

HR communication and employee engagement go hand in hand. 

Employee Engagement Statistics

Despite massive shifts in workforce preferences over the last few years – remote work, achieving work-life balance, higher pay, etc. – research shows employees are still not very engaged in their jobs.  

A Gallup poll found only 33% of US employees say they are engaged in their workplace. That number falls to 23% worldwide. 

And what does the research say about high or low employee engagement?

In a recent meta analysis, Gallup examined 100,000 teams to find correlations in performance, productivity, and nine other business outcomes. Here are some highlights:

(consider making this more visual) 

• Companies in the top 50% of employee engagement more than doubled their chances of success compared to companies in the lower 50% of engagement. 

• Companies with employee engagement in the 99th percentile had more than 5X the success rate of companies in the 1st percentile. 

• Employee engagement benefits (e.g. enhanced performance, higher productivity) were generalizable across industries. 

Some other notable findings compared median percent differences between teams in the top-quartile and the bottom-quartile.

+23% profitability

+17% productivity (sales)

+68% more thriving employees

-78% absenteeism

As you can see, employee engagement provides more benefits than just a happy workforce. 

Business Communication Statistics

In Grammarly’s 2024 State of Business Communication report, the research found that 88% of the workweek is spent communicating. 

HR professionals, in particular, spend up to 47 hours per week communicating, surpassing the 40-hour workweek! Nowadays, communication is a top contributor to overwork (and decreased job satisfaction).

However, the quality of communication and clarity of the message are paramount. When a business has an effective employee communication strategy, they can experience:

+64% productivity

+49% employee confidence

+51% customer satisfaction

The 4 Types of Communication

Before you can build better organizational communication strategies, it’s important to understand the four different types of business communication. 

Communication Type	Definition	Example
Upward communication	Employees send information and feedback up to leadership, improving operations and giving employees a sense of feeling heard.	Employee exit surveys give the organization information about the employee experience to inform future improvements.
Downward communication	Leadership sends information down to employees, allowing for widespread sharing of updates, policies, and objectives.	HR sends a company-wide email about new parental leave benefits.
Diagonal communication	People of different departments, and even different levels exchange information.	HR speaks with the marketing team about what types of professionals they need to hire for a successful product launch.
Horizontal communication	People in lateral roles communicate with one another (can include leadership and non-leadership roles).	A team of SEO professionals use a team chat to brainstorm and find solutions.

The Benefits of Implementing an HR Communication Strategy

There are many benefits to implementing an effective HR communication strategy, including: 

• Boosted Employee Engagement: When employees feel informed, valued, and heard (through clear communication), they are more likely to be invested in their work and the company’s success.

• Enhanced Productivity: Clear communication around goals, expectations, and progress eliminates confusion and wasted time. Employees can focus on doing their best work.

• Increased Retention: Informed employees feel more secure and valued, which can reduce turnover rates. Strong communication fosters a sense of belonging and reduces the chances of employees seeking opportunities elsewhere.

• Stronger Trust: Transparency and open communication build trust between employees and leadership. This fosters a collaborative environment where employees feel comfortable raising concerns and offering feedback.

• High-Quality Talent: A positive communication culture attracts and retains top talent. When employees feel valued and informed, they become brand advocates, promoting a positive company image.

• Better HR Onboarding: Effective communication ensures a smooth transition by providing clear information about company culture, expectations, benefits, and resources. This reduces anxiety and gets new hires acclimated faster, allowing them to contribute meaningfully sooner.

The Cost Implications of Ineffective HR Communication

What happens when communication breaks down in an organization? 

According to Grammarly’s 2024 State of Business Communication report, miscommunication can lead to:

-40% productivity

+32% costs

37% longer timelines

Additional negative effects of poor HR communication:

• Decreased Productivity: Confusion and mixed messages waste time. Employees who are unsure of expectations struggle to focus on their work.

• Disengagement and Frustration: Feeling uninformed and unheard breeds apathy. Employees become less invested in their work and company goals.

• Increased Errors: Misunderstandings about procedures can lead to costly mistakes and rework.

• High Turnover: Uninformed and undervalued employees are more likely to seek opportunities elsewhere. And replacing employees is expensive, sometimes costing companies 3-4X the position’s salary! (Society for Human Resource Management)

• Low Morale: Lack of transparency and open dialogue fosters distrust and negativity, leading to a demoralized workforce.

• Damaged Company Reputation: Disgruntled employees can spread negativity about the company, deterring future top talent.

How to Plan an Effective HR Communication Strategy

What are the key components of an effective HR communication strategy? 

Before we dive into the step-by-step guide about how to improve communications in the workplace, let’s discuss the essential elements of an ideal HR communication plan.

HR Communication Best Practices	How-To
Create a visual overview of your organization.	Segment your employees by department, location, or role to tailor messages and channels for better engagement.  Use org chart software like OrgChart to help you accomplish this quickly.
Identify the strengths and weaknesses of your current strategy.	Assess the effectiveness of all four types of communication within your organization.  Make a list of communication tools you’re already using (e.g. email, instant messaging, video calls).
Set SMART goals for your communication plan.	Define your most important goals in regards to creating or updating your employee communication strategy.   Are you trying to boost employee engagement? Improve organizational awareness? Streamline feedback channels?
Determine which communication channels and deliverables are feasible.	Work cross-functionally to determine which channels will be used across the organization.  Brainstorm how to best share information (email, video message, brochures, Q&A sessions, one-on-one, group, etc.).

Step-by-Step Guide: Building a Robust Human Resources Communication Strategy

Once you have all the key components in place, it’s time to design your HR communication plan. This step-by-step serves as a jumping off point for most HR communications. 

Step 1: Boil Down Your Message

Any time HR wants to communicate with leadership, other departments, or to employees, it’s essential to clarify the message and purpose. Before reaching out, ask yourself these questions:

• What is the main point I need to get across?
• Why is this information important to the person I’m communicating with?
• How can I say it in a concise and clear way?

Step 2: Choose the Channel and Resources

Different messages require specific types of communication channels. 

For example: A message from the CEO may be best delivered via email, rather than instant message. Or, getting feedback from a distressed employee may warrant a live video call.  

Consider adding supplemental resources alongside the main communication when necessary. For example: Attach a few blog posts or videos to help a new hire get to know the company. 

Step 3: Automate Where Possible

Whenever you build out a new HR communication plan, assess how you can automate it to save time in the future and improve consistency. 

With that being said, ensure you have parameters set in place to accommodate individual recipient needs, whether that’s frequent checking of an automated inbox or allowing time for additional questions and feedback. 

Evaluating the Effectiveness of HR Communication Strategies

HR should periodically refine its communication strategy. Surveys and focus groups can give you subjective insights into employee sentiment. 

For more data-driven insights, here are some business metrics to track:

Employee Engagement Metrics	Performance Metrics
• Internal email metrics (open rates, response rates) • Q&A session participation • Enrollment or adoption numbers	• Employee retention • Productivity metrics • Error reduction  • Turnover rates

Overcoming Common HR Communication Challenges

Here are some common HR communication challenges and how to tackle them:

• Inconsistent Messaging: When using multiple communication channels, ensure consistent messaging to avoid confusion. Standardize messaging with clear templates and editorial oversight.

• Information Overload: Prioritize key messages and use targeted communication based on employee segments (department, location).

• Lack of Feedback Mechanisms: Encourage two-way communication. Create anonymous surveys, conduct Q&A sessions, and ensure managers maintain open dialogue with employees.

• Jargon Overuse: Avoid complex HR terminology and acronyms that leave employees confused. Focus on clear, concise language everyone can understand.

By addressing these challenges, HR can bridge the gap between employees and leadership. This fosters a more engaged, productive, and positive work environment for everyone.

Tools and Platforms to Enhance HR Communication

More HR communication tools and platforms are emerging to help streamline collaboration and encourage better employee engagement. 

Workforce Communication Platforms All-in-one platforms with various ways to communicate, hold documents, and strategize.	Mobile Apps Tools accessed from anywhere, opening the door to more accessible information.	Video Conferencing and Streaming Live or on-demand meetings, which can be used for one-on-one, small group, or town halls.
Survey Tools Online tools to gain employee feedback and experiences at scale.	Self-Service Tools Helpful tools (e.g. AI chatbots) to help employees resolve issues and complete tasks on their own.

Companies are implementing more AI into their HR communication strategy to expedite messaging and personalize the employee experience when needed. 

Discover More Workforce Clarity with OrgChart

By fostering clear and transparent communication, HR can create a workplace where employees feel informed, valued, and empowered. 

This not only builds trust and strengthens company culture, but also translates into a more engaged and productive workforce.

Improve your HR communication strategy, starting with a comprehensive, visual overview of your organization. 
Get started with OrgChart software today!