View the latest 2009/2010 Communication ROI Study Report .
This report summarizes the findings of our 2009/2010 multiregional study. It identifies what the companies with highly effective communication practices are doing to inform and engage their employees in challenging economic times, and shows how these practices vary around the world.

Executive Summary

Effective communication is the lifeblood of a successful organization. It reinforces the organization’s vision, connects employees to the business, fosters process improvement, facilitates change and drives business results by changing employee behavior. No matter how you look at it, communication is an important part of the business landscape and cannot be taken for granted.

The 2003/2004 Watson Wyatt Communication ROI Study™ demonstrated the correlation between communication effectiveness, organizational turnover and financial performance. The 2005/2006 study confirms our earlier study findings and goes a step further, by showing that effective communication is a leading indicator of an organization’s financial performance.

KEY FINDINGS

• Companies that communicate effectively have a 19.4 percent higher market premium than companies that do not.
  
  
• Shareholder returns for organizations with the most effective communication were over 57 percent higher over the last five years (2000-2004) than were returns for firms with less effective communication.
  
  
• The 2005/2006 study found evidence that communication effectiveness is a leading indicator of financial performance.
  
  
• Firms that communicate effectively are 4.5 times more likely to report high levels of employee engagement versus firms that communicate less effectively.
  
  
• Companies that are highly effective communicators are 20 percent more likely to report lower turnover rates than their peers.

Other Survey Findings

• Two-thirds of the firms with high levels of communication effectiveness are asking their managers to take on a greater share of the communication responsibility, but few are giving them the tools and training to be successful.
  
  
• Global firms are not customizing their messages to meet local needs or cultural sensitivities.
  
  
• On average, firms within the financial and retail trade sectors rank among the most effective communicators. Health care, basic materials, telecommunications and other service companies rank among the least effective communicators.

Comparing the 2003 and 2005/2006 Studies

The 2005/2006 study sought to confirm findings from the 2003/2004 study. Additional questions focused on employee engagement, global communication, the relationship between the communication function and senior management, and new communication tools and technology. Compared to the 2003/2004 study, the 2005/2006 study found the following.

• An 8 percent increase in companies relying on a reactive approach to communication
  
  
• A 10 percent increase in companies using formal communication measures
  
  
• An 18 percent increase in companies in which communicators play a lead role in managing the content of the intranet

	TABLE OF CONTENTS Executive Summary Key Findings About the Survey Hierarchy of Effective Communication Conclusion

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