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Lead Your Team Strategy

Communication Gap is Big Problem For Small Business

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The smaller a business is, the less likely it is that its employees understand the company's goals, a new study shows.

Research from Robert Half Management Resources revealed that 35 percent of executives from companies with 20 to 49 employees said their employees are not aware of the firm's overall objectives, compared with just 9 percentof executives at organizations with more than 1,000 workers.

"Employees who know about their company's strategic goals are more motivated to help the business reach them," said Paul McDonald, senior executive director at Robert Half. "Managers need to go beyond simply sharing the vision, however, and show workers how their contributions support the efforts to reach organizational objectives."

Overall, the study found that more than one-third of businesses have employees who aren't tuned in to the company's goals.[LD1]

McDonald said the study shows there is a big opportunity for small businesses to bring their employees up to speed on the organization's top objectives.

"With fewer staff and a more nimble structure, small companies, especially, have an opportunity to broadly discuss strategic business intentions and rally their teams around those targets," McDonald said. "Even organizations still refining their vision should communicate to staff their initial business goals and the company's progress toward achieving them."

The research was based on surveys of more than 2,100 chief financial officers from companies with at least 20 employees.

Follow Chad Brooks on Twitter @cbrooks76 or BusinessNewsDaily @BNDarticles. We're also on Facebook & Google+.

 [LD1]Was this finding based on employees' responses, or on the executives describing their own employees?

Chad Brooks

Chad Brooks is a Chicago-based writer and editor with nearly 20 years in media. A 1998 journalism graduate of Indiana University, Chad began his career with Business News Daily in 2011 as a freelance writer. In 2014, he joined the staff full time as a senior writer. Before Business News Daily, Chad spent nearly a decade as a staff reporter for the Daily Herald in suburban Chicago, covering a wide array of topics including local and state government, crime, the legal system and education. Chad has also worked on the other side of the media industry, promoting small businesses throughout the United States for two years in a public relations role. His first book, How to Start a Home-Based App Development Business, was published in 2014. He lives with his wife and daughter in the Chicago suburbs.