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7 Reasons Why You Need Effective Business Communication In Your Company

Abhishek Bhargva

Telco ICT


Business Communication

Effective communication has a fundamental role in the business industry. It influences the company’s culture and determines the bottom-line results. Especially, for a small business or a newly launched startup. Effective business communication increases productivity up to 20-25 percent. 

On the other hand, poor communication leads your business to several risks. Perceptyx’s survey shows better communication made 96% of employees satisfied with the company’s regulations. But the number decreased to 30% when the communication was poor. Moreover, installing PBX office phone systems or a small business phone system could be a foundation step of effective communication. 

But what exactly is effective business communication? And, why is it a core fundamental of a successful business? 

In this guide, we will talk about everything you must know about effective business communication. You will know 7 reasons why you need effective business communication for your company. Also, you will know which small business phone system works best for you.

What is Business Communication?

When an individual or a group of people share information with each other related to business, it’s called business communication. The major goal of business communication is to improve brand operations to achieve targeted goals making fewer or no errors. In addition, Business communication involves ideating, taking feedback, giving instructions, and creating final reports. Business communication could happen verbally, non-verbally, or digitally by using a small business phone system or various PBX office phone systems.

Business communication happens between team leaders, managers, supervisors, and colleagues which is called internal communication. Besides, business communication also plays an important role outside of the company. For example, to communicate with other businesses, customers, and the company’s shareholders which is known as external communication.

Why Effective Business Communication is Crucial for Your Business?

In society, we interact to express our thoughts to establish a deep-rooted and understandable relationship. Likewise, effective business communication is vital to create sustainable and stable business growth. Whether it is your customer, business partner, or a new employee, clear business communication is crucial. And, no matter how big or small a company is, business communication helps you to achieve your business goals.

Let’s talk about other reasons why effective business communication is important for your company.

1. Better Employee Engagement

Employee engagement is the key foundation of a sustainable business. If an employee isn’t committed to your organization’s goals, then it’s a negative sign for your business.
Harvard Business Review publisheda review about business communication in the year 2016. It revealed that 69% of managers are not comfortable communicating with employees in general. As a result, 57% of employees reported they experienced a lack of guidance in their workplace. >

However, effective business communication is a fundamental step to improve employee engagement. Better communication establishes a healthy employee relationship. So a manager can inform responsibilities to the employees according to the company’s expectations. Moreover, you can use distinct constructive feedback to assign tasks accordingly. Also, it helps you to come up with an improved knowledge-sharing strategy. You can use a small business phone system to make your communication better at a budget-friendly price. 

2. Improved Company Culture

A well-planned business communication strategy consistently improves the company culture. When staff interact openly, and without any hesitation, the work atmosphere gets better. Also, you see the strong commitment and motivation in employees. And, your company successfully achieves targeted short-term and long-term goals in a targeted time span.

On the other hand, when business communication gets ignored, the company culture suffers from low engagement. Employees feel a lack of guidance and motivation. And, the work commitment between them starts falling apart over time. As a result, the company gets low turnover rates, alongside the staff, and customer satisfaction rates. 

3. Customer Satisfaction

Poor communication between organization and customer makes a negative impact on your brand. Either your targeted customer won’t understand what your product is all about. And, if one ends up buying the product, chances are you still get a negative response. For example, a customer is experiencing a product issue after using it for 2 months. But now no one is guiding them to solve the issue. As a result, you get a negative rating in place of 5 stars ratings.

So monitor carefully and improve if your employees aren’t treating your customers rightly. Besides, you must focus on quality communication equipment. You can pick PBX office phone systems or a small business phone system if you’re just starting out. You can do phone calls, messaging, and video calls with your customers using them. Also, you can easily integrate them with the essential apps to follow other aspects of your company. 

4. Improves Interdepartmental Communications

Small businesses usually ignore inter-departmental communication. Especially in the early phase of a startup. Also, it’s difficult to manage without having an effective business communication plan. For example, you’re managing your marketing team, IT department, research office, all at once. And, all of them have to be on the same page. And, you can’t do that without a proper communication approach. 

Moreover, a small business phone system like LG iPECS EMG100 helps you to sync all the departments in one place. Also, when employees get clear and specific instructions, you see a rise in productivity.  

5. Better Remote Worker Management

According to HRDive’s survey, 70% of businesses decided to choose a hybrid work model. Also, it is assumed that 75% of the total U.S. workforcewould be mobile by 2022. 

In the world of remote workers, communication gets more important. Also, an updated approach is essential to handle workers remotely. For example, you have to handle language and culture barriers while coordinating across various time zones. So effective business communication is necessary here to keep your business updated. You can use PBX office phone systems that have all features to communicate by audio, video, or over text. Also, you can follow this guide to know which small business phone system suits your business.

6. Eliminates Email Excess

Research shows most workers spend 11.7 hours at work and 5.3 hours at home checking their emails, every week. And, 30% of the time these emails are neither urgent nor important. But, it becomes a total waste of time of 300+ hours, in a year.

Yes, Email has important roles in business, such as sharing/receiving information reports, customer feedback, or task assignments. Still, a responsible organization can’t ignore such a substantial amount of loss of time. Using a small business phone system to create effective business communication could get rid of Email overload. In that way, you can save hundreds of hours that you can use to improve other business aspects.

7. Get A Sustainable Growth

When you use effective business communication, you contribute a lot to grow your startup. Employees feel comfortable and talk openly about new ideas. Also, everyone stays clear about the company’s direction and long-term vision. So your corporation’s innovation touches the sky-high limit. 

Moreover, when you communicate in both ways- internally and externally, your company gets transparency. Subsequently, you build trust. Trust is an important factor while working together towards a strong vision. Effective communication creates transparency that builds a strong trust bond between employees. And, that’s how you grow your company at a sustainable rate. But you can’t do that without choosing the perfect small business phone system. You can consult with professionals to choose the right communication equipment for your small business.


Effective business communication is important for every business. But it becomes crucial when you just launched a start-up. Alongside the above 7 reasons, you also get a couple of benefits. For example, new referrals, better knowledge sharing practices, a clear business vision, and many more. Moreover, you can make your business communication effective using a better PBX office phone system. They are cost-effective, built-in-feature, and known as the best small business phone system. Moreover, you can contact Telco ICT to know more about PBX office phone systems or what small business phone system works best for you.

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