What Can Poor Communication Cost Your Business?

by | Jun 24, 2022 | Blog

Communication is the cornerstone of every relationship, personal or professional, yet it is one of the top skills we take for granted in refining. Ineffective communication can cost more than just a customer, it has financial, personal and professional implications.

The cost of poor communication causes companies to lose an average of $26,000 per employee but it can also result in lost sales, low employee morale, missed performance goals, project completions, productivity and more.

According to Salesforce research, 86 percent of employees believe that “ineffective communication is the underlying reason for workplace failures.”

With all of these repercussions from poor communication, what can businesses do to improve their communication?

“Learning to recognize that soft skills, such as communication, are just as important as hard skills is the first step to improving your business,” said Phil Cooper, Evolve YT CEO. “Business leaders often forget that as much as we emphasize training for hard skills, soft skills are equally, if not more important.”

Graduates Entering the Workforce

With almost two million bachelor's degree graduates entering their first career, these candidates already come equipped with the technical skills required for their job positions, yet many of them lack the interpersonal skills needed to succeed.

“Effective communication is critical for all aspects of a business,” Cooper said, “from the customer service representative to the CEO, no position should be left out. Learning how to communicate effectively can transform a company.”

Cooper went on to explain that through his experience as a second-generation pest control business owner, he noticed the discrepancies that ineffective communication had on his business and decided to develop a process for correcting it. During this time, he created the What + How = WOW communication process, which quickly took hold of businesses across the country.

“The principles that are taught in Evolve YT’s Exquisite Communications course are from the foundations of the What + How = WOW book,” Cooper said, “with tactics that can easily be implemented to turn miscommunication situations into what we call ‘WOW’ moments.”

Students in the Exquisite Communications course can expect to learn the five steps of “WHAT to Communicate” and the 12 steps of “HOW to Communicate.” By the end of the course, students should be able to effectively communicate with their teammates and clients alike as well as how to address problem resolution with efficient communication.

Nonverbal Communication Speaks Louder than Words

Although spoken communication is important to refine, Cooper also mentioned that nonverbal communication is necessary to understand and identify.

“It's estimated that body language accounts for 93% of the total communication process, leaving only 7% for verbal communication,” he said. “Understanding that body language dramatically influences how the messages we communicate are received by our customers will significantly boost customer satisfaction rates, repeat sales, and ultimately the bottom line.”

Nonverbal communication doesn’t just end with customers, it plays an important role with colleagues.

According to a Forbes article by Jon Michail, “nonverbal communication can help you gain a person’s trust, confidence and respect way faster than verbal communication. Nonverbal communication ‘talks’ all the time, even when you are not verbally speaking.”

Nonverbal Communication in Virtual Settings

In a time where majority of companies are remote and relying on ZOOM calls or TEAMs meetings, nonverbal communication can speak louder than any spoken words.

From your body language to your environment, virtual meetings can impact what your colleagues think of you.

“Your image is what will help others in your virtual meeting perceive you as authentic, influential and authoritative,” said Michail. “Your body language and manners in a virtual meeting also impact your image. Simple things like keeping yourself on mute when others are speaking and looking into your camera rather than looking around can boost your virtual image.”

Whether verbal or nonverbal, understanding and executing effective communication can make a world of difference for your company’s employees and customers.

“By giving your employees the soft skill training they need to succeed, you’ll reap the rewards of increased production, morale, engagement, and gross profit,” Cooper said. “Investing in your employees can only benefit them, as well as your company, for the long haul.”