Small and medium-sized businesses could be stunting their own growth by overlooking internal communication, according to new research from the Chartered Institute of Public Relations (CIPR). The Inside Story, a report by John Clegg, reveals that while 81% of organisations with under 500 employees have some form of internal communication support, most lack the strategy, structure or skills to make it effective.
The hidden cost of overlooked internal communication
The study highlights a common pattern among SMEs: the role of internal communication is often an add-on to busy managers’ workloads, leaving messages inconsistent and culture fragmented. Yet 80% of leaders surveyed believe that better communication directly improves financial performance.
And while most respondents recognise the value internal communication brings, many believe they can’t afford the resources to invest in it.
“If you want to grow your business, internal communication isn’t a luxury, it’s essential,” says Pauline Smith, founder of The Comms Smith. “It’s what keeps teams aligned, informed and motivated through change and growth.”
When to invest — and what to avoid
The report recommends investing during periods of rapid headcount growth, when going through a merger or acquisition, or in times of organisational change. It also warns against treating internal communication as an admin task - for example, as an internal ‘post box.’
“Freelancers offer big-picture strategic thinking and hands-on expertise, when it’s needed most, at a price point that suits smaller organisations,” Smith explains. “We help define strategy, develop plans, design systems and processes, and coach leaders - without adding permanent costs. And, as small business owners, we know first-hand the challenges of managing finite resources."
Big-picture thinking on a small-business budget
The message for Cambridge businesses is clear: don’t wait until communication cracks appear. Investing early, even modestly, in expert internal communication expertise can pay dividends in engagement, retention and performance.
Visit www.thecommssmith.com to discover how expert, affordable internal communication support can help you scale faster, build stronger teams and communicate with impact.
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The Inside Story:
Investigating internal communication in organisations with fewer than 500 employees
