Communicating effectively at all levels of an organization can have major strategic advantages. Clear communication helps ensure that employees in each department are on the same page and contributes to a culture of collaboration. Employee morale is also typically higher when they can engage in regular interaction with leadership and coworkers. Small businesses have an advantage in strategically using communication because of the relatively small workforce compared to larger operations.

Team-Building Culture

Effective communication contributes to the development of a culture of collaboration and a team-building spirit in departments. Encouraging team members to share opinions, feelings and ideas openly, and being approachable when employees have comments, suggestions or concerns are ways that managers use communication to develop their teams. This also helps create the sense that all employees have a stake in the company's success, and the communication across levels of the organization can lead to problems being noticed quicker and resolved faster.

Shared Vision and Goals

A company's vision, mission and goals establish a shared direction or sense of purpose for a business. Top-down communication, between departments and within work units, all instill shared vision and goals by ensuring that everyone understands what is expected of them. When employees in all positions understand how their department and position contribute to company objectives, they are more likely to make the right decisions and act in the best interest of the business and customers.

Employee Morale

Poor communication is a key driver of reduced workplace morale, according to an article from corporate training website "Mind Tools." (See Reference 3.) By contrast, effective communication helps develop or rebuild morale. Employees will feel more a part of the company culture and their work teams when they interact regularly with managers, colleagues and coworkers. In addition to formal communication, informal communication helps employees develop a sense of belonging and commitment to their coworkers and the business.

Fewer Mistakes

A major strategic advantage of effective communication is that employees will make fewer mistakes. Front line managers can more accurately guide and direct their work teams if owners clearly convey goals, strategies and assignments. Similarly, front line managers can create high efficiency and harmony in their work groups with clear, consistent and accurate direction and coaching. Employees will make fewer mistakes with partners and clients because if the guidance they receive is clear. They will also more likely communicate clearly with customers in sales and service activities, with a positive effect on the bottom line.