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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 who has nearly 15 years' experience in the media business. A graduate of Indiana University, he 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. Following his years at the newspaper Chad worked in public relations, helping promote small businesses throughout the U.S. Follow him on Twitter.