The traditional group messaging strategy centered on a bulletin board has serious flaws: namely, notices get lost, important messages get missed, and there's no reliable…
The one mistake 47% of companies make that costs them billions of dollars every year is not having a digital internal communications strategy. A digital workplace can revolutionize an organization, save money, and make a company more competitive. All systems and processes function at maximum efficiency for an employee trifecta. Productivity, engagement, and experience all benefit from a digital workplace, and the success and savings ripple out to the rest of a company, all the way to the customer.
80% of the global workforce is on the frontlines, untethered to a desk or corporate communications, but they’re the ones most in need of a digital workplace. To reach those employees, companies need a business communication app that’s specifically designed for a mobile workforce. According to research scientist Kristine Dery of MIT’s Center for Information Systems Research, companies who employ a digital workplace outperform their competition thanks to an engaged and productive workforce. In fact, companies with higher employee engagement outperform competitors by 20%. But employers spend just 1% of corporate technology expenses on this vital population, and it’s costing them billions.
Here are some of the hidden costs of not going digital:
According to the New York Times, companies suffer from extremely low retention when they don’t utilize good technology for corporate communications. In fact, employees are 450% more likely to leave their jobs when the company is behind the tech times.
Without a digital workplace, paper pushing slows productivity way down. Management and employees spend more time getting tasks done. Some estimates show work gets done 5x faster with a digital workplace.
The most engaged employees are the most informed about their company and have the most direct communication with management, a benefit of a digital workplace. But statistics show those employees are in the minority. Almost 50% of workers say they don’t have a clear sense of their company’s direction. 84% don’t believe they get enough information from management. And 75% felt out of the loop when it came to hearing about policy changes. With such a big disconnect in corporate communications, employees are more likely to move on to another job.
There are 2.7 billion frontline workers in the world. But only 13% of them feel engaged at work. That’s over 20 percentage points lower than the average worker. The frontline workforce also receives the least investment in digital workplace technology and are often left out of internal communications. Linking these employees to a business communication app engages and empowers them with information. Every employee wants to be included in corporate updates.
Low engagement results in low productivity. But there’s a hard number linked to this loss. Lack of engagement costs companies an incredible $450 billion every single year. The cost benefit analysis of a digital workplace proves that a simple strategic shift of internal communications can eliminate needless business losses like these.
Every year, companies lose $37 billion simply from miscommunication. A business communication app can streamline clear information to specified end users. And with a digital workplace platform like Beekeeper, a confirmation campaign makes sure the recipient has read the message to reduce the chance of miscommunication.
Industries with deskless workers have the highest turnover rates. Retail stores have a turnover of about 67%. Markets and fast food restaurants are close to 100%. Employee departures disrupt workflows and it takes an average of 41 days to fill an open position. That’s a long time to be short staffed, which lowers productivity and cuts revenue. Most employees leave a job because they aren’t invested emotionally in the company. A digital workplace connects the communication dots and builds a bridge to that hard-to-reach workforce.
The average cost of replacing an hourly worker is between 16% and 20% of their annual wages. Companies with frontline workers face the highest turnover and thus the highest cost in employee replacement and training. 1 Hotels in New York wanted to find a way to keep their team dedicated, engaged, and on board with the company. When they adopted Beekeeper as their digital workplace their turnover rate dropped by 39%.
In some companies, the technology pendulum swings too far the opposite way. In an attempt to build internal communications, companies adopt too many apps, overwhelming employees with numerous messages and too many portals with different sign-ins. The result? 32 days a year are wasted from app overcrowding. With a digital workplace, a company can integrate multiple business communication apps into one hub. When the Wheatsville Food Co-Op in Texas adopted Beekeeper, there was a 90% reduction in emails, streamlining communications through one employee portal.
89% of companies compete based on customer experience alone which is defined by their interaction with a company’s frontline workforce. Educating, informing, and communicating with that team through a business communication app can build customer loyalty. Without it you stand to lose business. Every year companies waste billions of dollars, sacrifice customers and lose workers from the wrong internal communications strategy. So what’s a digital workplace worth? Priceless.