DAVID PRAGER, a communications leader at the pharmaceuticals giant Astra Zeneca, has no doubts about the importance of good corporate communication. Getting it right is essential if employees are to boost the group’s fortunes. “The engagement of the staff is absolutely critical to our success,” he said.

“Their motivation is increased when they understand the company’s objectives. There is a clear link between what the company is trying to do and their role. What is particularly important is that these individuals understand the meaning of that success.

“This allows us to be responsive, nimble and improve the value of our offering to the NHS. Employees are the face of our company and delivering those messages to our stakeholders is critical,” he said.

The importance of good communications is the central theme of A Little More Conversation, a report by the workplace communications consultancy CHA, based on interviews with 1,000 employees across Britain and carried out with Astra Zeneca’s help.

The central theme that emerges from this study is how good communications transform corporate performance. Steve Newhall, UK managing director of DDI, a global HR consultant that contributed to the survey, argues that people need to see meaning in their work: “Where we see high levels of employee commitment, it’s because managers take trouble to share the big picture with their people and help them recognise their part in it.”

Employees, though, are divided about the contribution employers make. More than half, 56%, accuse employers of poor communication and a significant minority, 39%, said they were told too late about big changes in their organisations. However, clear communications can have a dramatic impact because 80% of the workers who were kept well informed said it motivated their performance and they became more productive.

Morgan Chambers, group head of leadership development at National Grid, which took part in the research, agreed with Prager and Newhall about the importance of communication. “We can’t take it for granted,” she said. “Employees say they want more communication during times of change.”

But communications must be two-way, said National Grid’s group HR director, Pat Fulker. “Employees want to hear messages face-to-face from their managers with the ability to give feedback. It is vital that managers are trained as communicators,” he said.

Astra Zeneca is a great believer in face-to-face communications rather than relying on electronic means such as e-mail. “It is much more motivating,” said Steven Dyke, a resourcing consultant with the company. He has worked with companies that rely on e-mail but he prefers to talk to people. He is dismissive of companies that “have meetings for the sake of meetings” but believes good communications are a strong motivator.

Newhall believes employee engagement is essential and much of DDI’s work involves helping clients to measure engagement levels as well as doing regular surveys to measure performance. This has been so successful that staff turnover has fallen to almost zero while company growth has flourished, reaching 25% year on year for the past three years.

“Companies are beginning to see the connection between engagement and high productivity. It is pretty well understood that there is a strong correlation,” he said.

Recent research reveals a wide gulf between bosses and employees, which exacerbates weak communications. A new report, Good Boss Bad Boss, produced by Andrea Gregory and Lisa Smale, found that nearly one in four of the country’s bosses were classed as bad or dreadful. The authors, founding partners of the Good Boss Company which campaigns for better bosses, found that of the 1,084 UK employees they polled, only 4% would give their bosses 10 out of 10.

Employees believe that four of the main causes of their bosses’ bad behaviour are poor training and development (44%), poor management by their own bosses (42%), overwork (34%), and understaffing (28%). Nearly half of them believe their bosses are in the wrong job.

“Organisations need to go back to basics and understand the importance of softer skills like better communication and core values such as integrity and trustworthiness. If bosses are lacking these the potential for damage is huge,” said the report.

It does not matter how great an organisation’s products and services are, or how exciting its plans. The thing that has most impact on productivity and staff retention is whether someone has a good or bad boss.

“Good bosses can make people feel really good about the job, encouraging greater commitment and productivity. The impact of bad bosses can be devastating,” said Gregory.

Curiously, the survey found that eight out of ten employees had not heard about the government’s information and consultation regulations that require communication between management and workforce on matters that affect their employment. More than 90% had not heard about it from their trade union.

Times Recommends

• Blackstone target at $7.75bn on China deal
• An opportunity in the Muslim community
• BSkyB deal may spell trouble for Virgin