Poor communication skills can cost your business up to £25,000 each per year, per employee.
According to a study of over 500 businesses conducted by Siemens.
The study looked at companies with up to 400 employees from eight major countries.
It finds that without proper communication skills training communications pain costs add up quickly.
“Communications pain” is the term used for barriers that affect communications in everyday business processes.
In this week’s blog, we take a closer look at this research to answer 2 questions.
A recent personal experience can explain exactly why a lack of communication costs.
My wife and I are currently looking to move house.
So we have been contacting estate agents for viewings.
We decided to view two properties last week with separate companies.
At both of these appointments, we were stood up with no communication before, during or after the scheduled appointment.
This lack of communication resulted in both companies losing a new customer.
Each time we were stood up, my wife and I called the agent to find out where they were.
The first agent was unaware of the arranged viewing.
This meant that communication within the agency had failed altogether.
We were unable to contact the second agent on the number provided.
This was due to the viewing being outside of office hours.
The office phone number provided should have been redirected to the agents mobile.
However, it wasn’t and there was no answering machine.
So, disheartened and annoyed, my wife and I made our way back home.
We trust our employees to communicate effectively ensuring maximum output.
However, being an effective communicator takes a lot of skill and practice.
The research gathered by Siemens Enterprise Communications identifies the top ten communication pain points:
These, in turn, affect your business’s bottom line due to:
The above are examples of exactly how communication inefficiency can cost a business money.
Poor communication coupled with ineffective processes resulted in lost custom for the agencies.
Another example of cost resulting from poor communication is ‘time’.
Specifically, communication pains leading to wasted man-hours.
The average amount of time wasted due to the top 5 communication pains is outlined in the research study.
The study shows that:
Using the research points above, you can easily quantify the average cost of communications barriers.
Take the time spent on each pain point then multiply it by the average hourly rate of the employees in that department.
To be effective in business, you have to communicate well.
To be a good manager, you have to communicate exceptionally well.
Just like any professional attribute communication skills have to be developed and honed on an on-going basis.
Regular communication skills training for key employees will reduce the costs of inefficient communication.
A greater understanding of how it works will allow your business to:
The study surveyed 500+ businesses from a range of industries.
Industries represented are finance, healthcare, communications, insurance, manufacturing, professional, W/R trade and real estate.
The below tables show you the size and location of these companies.
|Employee size||Number of respondents||% of total|
|Location||Number of respondents||% of total|
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Lastly, use the research study to guide you in working out the costs your company incurs due to its communication pain points.
Written by Carl Banks, Marketing Executive at Glasgow based media training company Pink Elephant Communications
Photo credits // Photo by Štefan Štefančík on Unsplash // wtffinance.com // stenews.org
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