The Humand platform warns about the impact that a lack of internal communication within organizations has on productivity and the workplace climate, as well as on company profitability. The company explains how internal communication is essential for business success.
Disfunctional internal communication stands out for a lack of transparency in decision-making, scant information about objectives, expectations, or tasks, a lack of effective feedback, or it can even lead to a culture of silence or fear, creating an environment where employees are not comfortable sharing ideas or opinions.
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This dysfunction in internal communication translates into a negative impact within the company. From Humand, they review some of the main consequences:
- Poor team coordination. The lack of definition or the misuse of communication channels leads to task duplication, the generation of errors, or a decrease in efficiency. Consequently, processes can slow down and cause frustration in employees. According to the Workplace Communication Statistics 2026 study, 63% of employees admit wasting valuable time due to duplicated tasks or waiting for miscommunicated information.
- Demotivation. When there is no clear information, employees feel excluded from projects or feel they do not have enough backing from the company. This situation generates demotivation and a lack of commitment to the company.
- Employee turnover. As a consequence of the demotivation caused by the lack of proper internal communication among teams, turnover increases and talent retention is affected. Having team management platforms can increase employee engagement by up to 300%, according to Humand data.
- Information overload. To address the lack of communication, sometimes employees are given more information or data than they can process. This leads to confusion and decreased productivity.
- Damage to the workplace climate: When communication is not transparent, rumors arise, uncertainty grows, and misunderstandings lead to internal conflicts, distrust among colleagues, and a toxic work environment.
- Loss of clients and projects. The lack of an effective flow of communication between colleagues or departments can lead to ideas or proposals not being valued or to not meeting the needs of teams or clients in time, generating misunderstandings that can lead to client or project losses.
- Economic impact: The consequences of inefficient communication directly affect productivity and have a negative economic impact on companies’ bottom lines. “There isn’t a defined figure, but various studies point to an economic impact that could range from $9,000 to $12,000 per employee per year in lost productivity and wasted hours,” notes Leandro Oliveira, Humand’s EMEA director. In fact, according to Gallup data, improving how people communicate and stay connected could generate up to $9.6 trillion in economic benefits.
Internal communication is established as one of the fundamental pillars of how any organization operates; however, many companies do not give it the attention it deserves, and it remains one of the outstanding tasks for many.
To improve internal communication, Leandro Oliveira, Humand’s EMEA director, suggests “combining technology, leadership, and active listening.” He reminds us that “companies need to establish clear and accessible channels of communication, and invite teams to express their ideas to improve transparency and strengthen engagement, without forgetting the need for leaders to have communication skills to convey messages clearly and efficiently.” On the other hand, Humand recommends constantly measuring how employees feel, humanizing them and understanding their needs to adapt the strategy and ensure that everyone is aligned and connected.
