THE ROLE OF INTERNAL COMMUNICATION

IN EMPLOYEE ENGAGEMENT
James Kinneer
Indiana University of Pennsylvania
j.w.kinneer@iup.edu
 THE ROLE OF INTERNAL COMMUNICATION
IN EMPLOYEE ENGAGEMENT

ABSTRACT

The purpose of this paper is to review literature related to the role of internal communications in
employee engagement. A range of recent publications related to internal communication and
employee engagement are discussed with an emphasis on leadership communication, internal
marketing/branding and the use of technology applications such as intranets and social media.
This paper provides an overview of suggested best practices and recent research findings in each
area.

INTRODUCTION

Pervasive, credible and stimulating internal communication is a critical element of a

successful employee engagement strategy. Achieving and sustaining increased levels of
employee engagement is one of the major objectives for corporate communication
professionals. There is clear evidence that internal communications have a direct impact on the
company's bottom line as well as employee engagement, job satisfaction and organizational
commitment. Internal communication professionals can impact employee engagement with a
multitude of strategies, but three key areas for focus are leadership communication; internal
marketing and branding; and using technology enabled communication channels such as email,
intranets and social media. Attention to these areas will assist organizations in developing world
class internal communication programs that drive employee engagement and organizational
performance.

EMPLOYEE ENGAGEMENT

Employee engagement has emerged as a pivotal strategy for organizations seeking to

compete in the global marketplace. An accumulation of empirical data substantiates the
importance of employee engagement to the success of organizations and the retention of talent.
The key drivers of employee engagement have been discussed from a number of perspectives,
but common themes include relationship with management, participation in decision making,
positive reputation of the company and feeling well informed and valued. Because of the impact
of internal communication on organizational performance, employee engagement has emerged as
a primary role of internal communication and human resources professionals.
Employee engagement is a widely used, but not always commonly understood concept.
Kahn (1990) is credited with the earliest published use of this term. Over the past twenty years,
the literature has produced numerous and sometimes conflicting definitions. Some definitions of
employee engagement appear to be similar to other concepts such as organizational commitment
and organizational citizenship behavior (Robinson et al., 2004). It is often defined in terms of an
emotional and intellectual commitment to the organization (Bamruk, 2004; Richman 2006;
Shaw, 2005). Saks (2006) proposed that two separate but related constructs of job engagement
and organization engagement should be considered. To establish a common definition, Shuck
and Wollard (2009) synthesized definitions in 140 articles that refer to employee
engagement and propose the definition of employee engagement as a positive cognitive,
emotional, and behavioral state directed toward organizational outcomes.
While defining employee engagement is sometimes challenging, the benefits ascribed to
employee engagement are significant and address critical success factors of most organizations.
Engaged employees are more productive, profitable and deliver higher levels of customer service
with higher levels of retention and lower absenteeism and accident rates (Fleming, 2009).
Engaged employees produce return-on-assets, profits and market value (Schneider, Macey,
Barbera, & Martin, 2009). Extensive research by Gallup provides overwhelming support for the
premise that employee engagement is an important predictor of positive organizational results
including customer satisfaction, employee retention, productivity and profitability (Buckingham
and Coffman, 1999). In a global survey of the engagement levels of 50,000 employees in 27
countries, research by the Corporate Leadership Council (2004) found organizations with a
highly engaged workforce had almost ten times as many committed, high-effort workers as those
with a low-engaged workforce.
The antecedents and causes for employee engagement include both intrinsic and extrinsic
factors related to the work environment, work relationships and the nature of the work itself.
Lockwood (2007) identifies workplace culture, managerial style, trust, leadership, and corporate
reputation as contributors. Other research cites leading engagement factors as: senior
leadership interest in employees; challenging work; decision-making authority; career
advancement opportunities; company's reputation; collaborative work environment; input into
decisions; and a clear direction from senior leadership (Towers Perrin, 2003). There is also
support for the theory that engagement comes directly from the work itself in the form of
meaningfulness, choice, competence, and progress (Thomas, 2009). Many of the variables that
impact employee engagement can be in some way related to internal communication practices.
Internal communication is critical to creating high levels of employee engagement and
thus an important focus for corporate communication professionals. Effective communications
create engaged employees who are better able and willing to serve customers (Parsley, 2006).
Clear, consistent and open communication is important to employee engagement (Lockwood,
2007). Employee communication facilitates employee engagement by aligning employees with
the goals and strategies of the organization (Dorey & Garcia, 2007). Employees who are
dissatisfied with internal communications are more likely to be dissatisfied with their job and to
contemplate leaving for other employment opportunities (Drake, Gulman & Roberts, 2005).
Effective employee communication is a leading indicator of financial performance (Towers
Watson, 2010). The growing evidence of the linkage between business performance and
internal communication is strong cause for companies to reconsider how they manage internal
communications (Dorey & Garcia, 2007). Because of demonstrated importance to business
results and the connection to effective internal communications, employee engagement is rapidly
becoming the primary role and purpose for internal communication efforts (Alexander, Lindsay-
Smith, & Joerin, 2009).
 LEADERSHIP AND MANAGEMENT COMMUNICATION

Effective internal communications must elevate the reputation of the organization and its
management team by helping senior leaders to articulate the corporate strategy in a clear and
compelling manner. Senior leadership's interest in employees, trust in senior leadership and an
individual's relationship with their manager are critical elements for employee engagement,
consequently, internal communications must work to strengthen these areas by providing support
to all level of management and reinforcing the importance of interpersonal communications in
the workplace to build trust and gain commitment to organizational goals.
Internal communication and human resources professionals need to start their employee
engagement efforts by working closely with top leadership to ensure consistent, personable
communications with all internal audiences. Internal communications is the protector of
leadership credibility and must help to reinforce a consistent management message (Dorey &
Garcia, 2007). Employees want to work for respected organizations and for leaders with the
ability to implement strategy and create success. They want the organization’s strategy to be
effectively communicated to them so they can contribute to the corporate strategy and helping
the organization succeed (Matthews, 2010). Senior leaders need the support of internal
communications to ensure that their messages are received and understood by all employees
(Argenti, 2009).
In addition to senior leadership, middle managers and front-line supervisors are pivotal
to creating a positive environment for internal communications. Bakker and Schaufeli (2008)
found that employees who interact positively with their managers have increased levels of
engagement. Effective organizations make communication a formal part of the line manager’s
role and provide line managers with communication training (Alexander, Linsday-Smith &
Joerin, 2009). One strategy to assist leaders is to create a communication role description for
each level of management. This helps to clarify who should communicate key information and
helps to avoid over communication of some topics while others are neglected (Droppers, 2006).
Training programs focused on providing front-line leaders with effective coaching and
leadership skills can have a significant impact on employee engagement (Schneider, Macey,
Barbera, & Martin, 2009). Providing managers with resources such as communication toolkits,
talking points and online support assist managers in delivering strategic messages more
effectively (Goodman, 2009).
While social media and other technological advances offer exciting possibilities,
internal communication professionals should not lose sight of the importance of interpersonal
communication. Face-to-face opportunities for information exchange and dialogue are critical to
effective internal communications and are second only to e-mail in frequency as an internal
communication method (Theblueballroom, 2009). Face-to-face communication builds trust,
shows commitment and helps to connect employees with the mission of the organization
(Alexander, Lindsay-Smith & Joerin, 2009). In comparison to e-mail, face-to-face
communication has a greater impact on employee motivation and empowerment (Hewitt, 2006).
Leaders can engage employees by communicating in a way that encourages employees to
participate in two-way communication by answering questions in a manner that encourages
employees to speak openly (Droppers, 2006).
Buckingham and Coffman (1999) were among the earliest to describe the importance of
leadership communication to employee engagement. Recent research affirms the relationship of
senior leader and manager communication to job satisfaction and performance and an increased
need for senior leader communication during a time of significant change. Whitworth &
Riccomi (2005) found a direct correlation between the managerial communication effectiveness
and job satisfaction. Matlock (2008) report that supervisor communication competence is a
strong predictor of employee job satisfaction.

INTERNAL MARKETING AND BRANDING

Internal marketing and branding is an important internal communication strategy that

enhances services to the customers by engaging employees to deliver the company's brand
experience to customers. Successful organizations demonstrate the ability to build employee
engagement around their brand. Internal marketing and branding programs are able to align
employees with the company's brand. The results of internal marketing and branding include
increased job satisfaction, organizational commitment and business performance.
The reputation of a company and an employee’s feeling of connectedness to the
company’s brand and identity contribute to engagement. The initial growth and success of
companies like Starbucks, Virgin Atlantic and Nike was largely due to pervasive, deep and
emotionally driven understanding of the attitude, behavior and style of the brand by their
employees (Mostyn, 2008). Organizations with positive reputations benefit from higher levels of
employee engagement (Parsley, 2006). Internal marketing and branding can promote employee
engagement by sending a consistent message about the company, its mission, values and
products to both internal and external audiences (Lockwood, 2007). Internal marketing and
branding contributes to improved morale and engaging employees (Argenti, 2009). Some
experts assert that internal marketing is more important than traditional external marketing
(Kotler, 2000).
The literature presents various definitions of internal marketing and branding but a
common element is the goal of creating a motivated and customer-oriented workforce.
Misaligned internal and external marketing messages will negatively impact the customer
experience (Argenti, 2009). Internal marketing was originally developed as an approach to
service management by applying marketing concepts to internal audiences in order to create a
stronger customer orientation (Varey, 1995). Over the past several years, there has been a shift
from internal marketing to internal branding (Mosley, 2007). Presently, internal branding is a
key strategy to align all employees with the company’s brand and to create an engagement
workforce that lives the brand everyday (Drake, Gulman & Roberts, 2005). The primary
difference between internal marketing and internal branding is that internal branding has broader
focus on corporate goals and objectives, that is inclusive of the customer brand experience, but
not limited to it (Mosley, 2007). Organizations should consider internal branding to support
significant changes such as a merger, when launching new advertising or external branding
campaigns, and when internal assessment reveals low morale or a lack of connection with the
company's vision (Argenti, 2009).

LEVERAGING TECHNOLOGY AND SOCIAL MEDIA

As work becomes more decentralized and as more tech savvy employees enter the
workforce, employers are finding the benefits of technology enabled communications and
training to boost employee engagement. Technological driven communications provide
numerous benefits, including the ability to increase knowledge sharing, collaboration and
interaction. Intranets, the hub of electronic communication, are expanding to include various
social media tools such as blogs, wikis and webcasts.
To achieve high employee engagement, many companies are tapping into technology that
helps to span typical barriers of time and space and that also empowers employees and promotes
technology-mediated dialogue. E-mail is the most frequently used method for internal
communication (Theblueballroom, 2009). The benefits of technology include providing a faster,
more professional solution (Alexander, Lindsay-Smith & Joerin, 2009). New media technology
benefits also include greater transparency of ideas, innovation, knowledge sharing and more
targeted delivery of information (Ewing, 2007).
Intranets are the center of internal communications for most organizations and are rapidly
expanding in their capabilities to be effective in managing information overload. Intranets are
the foundation for internal communication, especially in large or global organizations
(Alexander, Lindsay-Smith & Joerin, 2009) and the third most used method of internal
communications (Theblueballroom, 2009). Progressive intranets can allow employees to work
more collaboratively and improve communication (Cheuk, 2009). Intranets provide many
benefits for communications, but it is important to ensure that information are intranets is easily
accessible and to avoid information overload. Portal technology can be used to help streamline
intranet content to manage online information (Argenti, 2009).
Increasingly intranets are also integrating social media and Web 2.0 tools to enhance
interactivity and to empower employees to assist in content creation. Web 2.0 tools include
wikis, podcasts, webcasts, RSS feeds and social bookmarking (Ewing, 2007). Another useful
tool, blogs provide a forum for creating two-way asynchronous dialogue and have also been used
to compliment other methods of internal communication such as storytelling (Love, 2008).
Virgin Media reports on the use of the micro-blogging application Twitter to encourage
employee collaboration and information sharing (Signorelli, 2009). Social media spurs
employee engagement by through connection, collaboration and communication (Jue, Marr &
Kassotakis, 2010). According to Michael Rudnick, global intranet and portal leader at Watson
Wyatt, “When properly rolled out, social media and Enterprise 2.0 tools can help companies
meet their No. 1 internal communication goal – engaging employees,” (as cited in Foster, 2008).

IMPLICATIONS FOR FURTHER RESEARCH

Because of the limited agreement regarding the definition of employee engagement, it is

difficult to measure in a consistent manner. It is also unclear how engagement is related to other
concepts such as organizational commitment, job satisfaction, organizational citizenship
behaviors and job involvement. While there is considerable interest and support for the use of
social media for internal communications and to support employee engagement, however, this is
very little scholarly research to support these claims. Future research should address the
relationships of information technology and social media as drivers of improved internal
communications and employee engagement. This paper has explored the role of leadership
communication, internal branding and communication technology enablers as separate areas
internal communication, however, in actuality they are complementary strategies. It would be
of value to understand how communication technologies such as social media have an impact on
leadership communication and how companies might engage employees in internal branding
efforts through social media. It would be useful to continue to evaluate the long held preference
for face-to-face communication as more digital natives enter the workforce and organizations
seek to engage this segment of the workforce. As the number of virtual organizations and virtual
workers continues to grow, future research should also explore communication in virtual work
environments.

SUMMARY

Internal communication is the catalyst for unleashing the power of employee

engagement. Internal communicators need to assess their communication infrastructure and
evaluate their leverage of leadership communication, internal branding and communications
technologies. These seemingly disparate approaches can be integrated for maximum
effectiveness. Leaders can utilize new communication technologies such as social media to
reach broader audiences and to create interactive, online dialogues with employees.
Communication technologies can also be used to support internal brand initiatives by
incorporating branding with intranets and encouraging employees to participate in social media
regarding the corporate brand.

REFERENCES

Alexander, J., Lindsay-Smith, S. & Joerin. C. (2009). On the quest for world-class internal communication.
Strategic Communication Management, 13(4), 32- 35.
Argenti, P.A. (2009). Corporate communication. Fifth edition. New York: McGraw-Hill.
Bakker, A. B., & Schaufeli, W. B. (2008). Positive organizational behavior: Engaged
employee in flourishing organizations. Journal of Organizational Behavior, 29, 147-154.
Baumruk, R. (2004), “The missing link: the role of employee engagement in business success”,
Workspan, 47, 48-52.
Cheuk, B. (2009). Intranet 2.0: Increasing global dialogue at ERM. Strategic Communication Management,
13(6), 24-27.
Dessler, G. (1999). How to win your employees’ commitment, Academy of Management Executive, 13 (2), 58.
Doorely, J. & Garcia, H.F. (2007). Reputation Management: The key to successful public relations and
corporate communication. New York: Taylor & Francis Routledge.
Drake, S., Gulman, M.J., & Roberts, S.M. (2005). Light their fire: Using internal marketing to ignite
employee performance and wow your customers. Chicago: Dearborn Trade Publishing.
Dropppers, K. (2006). Engage employees with effective communication. Rural
Telecommunications, 25(2), 62-64.
Ewing, M.E. (2007). Changing with times: Leveraging the web to enhance your employee communications
program. Public Relations Tactics, 14(3), 12-13.
Fitzgerald, M. (2007, May 20). Why work is looking more like a video game. The New York Times. Retrieved
July 27, 2010 from http://www.nytimes.com/2007/05/20/business/yourmoney/20proto.html
Fleming, J. (2009). From Gallup: Why engagement is essential. Strategic Communication Management, 13(4), 7.
Foster, C. (March 18, 2008). Pros of social media as a communication tool outweigh cons. Benefit News,
Retrieved on July 20, 2010 from
http://ebn.benefitnews.com/news/pros-social-media-communication-tool-outweigh-554601-1.html
Giesin, B. (2009). How digital tools can help improve comms efforts. Strategic Communication
Management, 13(6), 8.
Gorman, B. (2007). Building the buzz, the band and the business at Motorola. Strategic
Communication Management, 11 (4), 24-27.
Goodman, J. (2009). Thomson Financial’s comms resources for managers. Strategic
Communication Management, 13(4), 12.
Proceedings of the Annual Meeting of the Association of Collegiate Marketing Educators. Dallas, TX.
Hewitt, P. (2006). Electronic mail and internal communication: A three-factor model.
Corporate Communications: An International Journal, 11(1), 78-92.
Jue, A.L., Marr, J.A., & Kassotakis, M.E. (2010). Social Media at Work: How Networking Tools Propel
Organizational Performance. San Francisco: Jossey-Bass.
Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work.
The Academy of Management Journal, 33(4), 692-794.
Kotler, P. (2000). Marketing management-analysis, planning implementation and control (10th edition).
Englewood Cliffs, NJ: Prentice-Hall, 22-26.
Mostyn, A. ( 2008). Creating real employee engagement. In J.L. Noel and D, L. Dotlich (Eds.)
The 2008 Pfeiffer annual: Leadership development. San Francisco: Pfeiffer Wiley.
Lockwood, N.R. (2007). Leverage employee engagement for competitive advantage: HR’s
strategic role. 2007 SHRM Research Quarterly. Society for Human Resource Management.
Love, H. (2008). Unraveling the technique of storytelling. Strategic Communication Management, 12(4), 24-27.
Parsley, A. (2006). Road map for employee engagement. Management Services, 50(1), 10-11.
Paullay, I.M., G.M. Alliger & E.F. Stone-Romero (1994). Construct validation of two instrument
designed to measure job involvement and work centrality. Journal of Applied Psychology, 79 (2), 224-228.
Pfeffer, J. (1994). Competitive advantage through people: Unleashing the power of the workforce.
Boston: Harvard Business Review Press.
Podsakoff, P.M., S.B. MacKenzie, & W.H. Bommer (1996). Transformational leader behaviors and substitutes
for leadership as determinants of employee satisfactions, commitment, trust and organizational
citizenship behaviors, Journal of Management, 22 (2), 259-98.
Richman, A. (2006), Everyone wants an engaged workforce how can you create it?, Workspan, 49, 36-39.
Robinson, D., Perryman, S. and Hayday, S. (2004), The drivers of employee engagement. Brighton, UK: Institute
for Employment Studies.
Saks, A. (2006). Antecedents and consequences of employee engagement. Journal of Managerial
Psychology, 21(7), 600-619.
Schneider, B., Macey, W., Barbera, K., & Martin, N. (2009). Driving customer satisfaction and
financial success through employee engagement. People & Strategy, 32(2), 22-27.
Shaw, K. (2005), “An engagement strategy process for communicators”, Strategic
Communication Management, 9 (3), 26-9.
Shuck, M. B., & Wollard, K. K. (2009). A historical perspective of employee engagement: An
emerging definition. In M. S. Plakhotnik, S. M. Nielsen, & D. M. Pane (Eds.), Proceedings of the Eighth
Annual College of Education & GSN Research Conference (pp. 133-139). Miami: Florida International
University. http://coeweb.fiu.edu/research_conference/
Signorelli, A. (2009). How Virgin Media uses Twitter for collaboration. Strategic Communication
Management, 13(4), 8.
Theblueballroom. (2009). Social media and you: A research report on social media usage in the internal
communications arena. Retrieved July 27, 2010 from http://www.theblueballroom.com/downloads.php
Thomas, K. W. (2009). Intrinsic motivation at work. Second Edition. San Francisco: Berrett-Koehler Publishers.
Towers Perrin. (2003). Working today: Understanding what drives employee engagement. The 2003 Towers
Perrin Talent Report. Retrieved July 23, 2010 from
http://www.keepem.com/doc_files/Towers_Perrin_Talent_2003(TheFinal).pdf
Towers Watson. (2010). Capitalizing on effective communication: How courage, innovation and discipline
drive business results in challenging times. 2009/2010 Communication ROI Study Report. Retrieved
from http://www.towerswatson.com/assets/pdf/670/NA-2009-14890.pdf
Varey, R.J. (1995). Internal marketing: A review and some interdisciplinary research challenges.
International Journal of Service Industry Management, 6(1), 40-55.
Whitworth, B. & Riccomini, B. (2005). Management communication: Unlocking higher
employee performance. Communication World, 18-22.