Digital Signage Software

Corporate communicators know this. Determining ROI in employee communications is a tricky calculation. Whether you're investing in new technology like digital signage or launching a brand new intranet, some people will always ask, "What's the ROI?"

Now here's your answer. Just this month, Watson Wyatt released their 2009/10 communication ROI study. You might be wondering who took part in the survey. Well, 328 companies from around the world representing nearly 5 million workers. Pretty impressive. Straight from the report:

Effective employee communication is a leading indicator of financial performance and a driver of employee engagement. Companies that are highly effective communicators had 47% total higher returns to shareholders over the last five years compared with firms that are the least effective communicators.
Measurement is critical. Companies that are less effective communicators are three times as likely as highly effective communicators to report having no formal measure of communication effectiveness.

Now these are just a few key findings but let's tackle first bullet. 47% total higher returns? That sounds great. But keep in mind that these numbers are in comparison to the LEAST effective. And if you are reading this blog and researching tools, you are not part of the LEAST. You might feel like it, but you aren't. However, this third-party report should help you build support for making investments in new employee comm tactics.

And to measurement, we've heard it all before. It's hard work to measure employee comms but clearly it's a key component to any effective corporate communication department's activity. This is where our ROM (Return on Message) approach can help measure the effectiveness of digital signage hardware and software for internal networks.

Themes running through the report are courage, innovation and discipline. I love seeing almost heroic terms applied to internal comms. Employees need companies to tell it like it is and make attempts to not just stick with status quo when it comes to workplace communication.

There is so much great information in this report I'll break it out into different blog posts over the next few weeks.

"Effective internal communications can keep employees engaged in the business and help companies retain key talent, provide consistent value to customers, and deliver superior financial performance to shareholders."

Watson Wyatt 2009