Business Communication: Concept, Structures, and Channels

Business Communication: Concept, Structures, and Channels

Introduction

Communication is the actionable transfer of information from one person, group, or place to another by writing, speaking, or using a medium that provides a means of understanding.

Its precise definition is disputed and there are disagreements about whether unintentional or failed transmissions are included and whether communication not only transmits meaning but also creates it.

In 1928 the English literary critic and author I.A. Richards offered one of the first—and in some ways still the best—definitions of communication as a discrete aspect of human enterprise:

“Communication takes place when one mind so acts upon its environment that another mind is influenced, and in that other mind an experience occurs which is like the experience in the first mind, and is caused in part by that experience” — I.A. Richards

What is Business Communication?

Business communication is the act of information being exchanged between two-parties or more for the purpose, functions, goals, or commercial activities of an organization.

In this case, an organization means not only one legal entity, but also several legal entities subordinated to a management company and/or government authority.

Business Communication book published in 2004 as part of Harvard Business Essentials defined business communication as follows:

“No matter whether it is written or verbal, it is the instrument through which business speaks to its consumers. It is the mechanism by which management influences its employees and guides their activities. It is also the means by which the employees provide information and feedback, which are necessary to the management to take smart decisions. Organizations which carry out clear, meaningful and effective communication with clients, employees, share-holders, creditors and the public have better chances of building reliable relationships and can count on good cooperation” — Business Communication (2004)

❗️ The ultimate goal of business communication is to convey information effectively, ensuring clarity and understanding among all stakeholders.

❗️ Business communication plays a pretty important role in team management, decision-making, problem-solving, collaboration, and, most importantly, in achieving your overall business goals. It is also often critical to maintaining strong professional relationships.

🔵 The top 10 objectives of business communication are:

  1. To convey clear messages
  2. To foster relationships
  3. To promote understanding
  4. To motivate employees
  5. To inform and educate
  6. To facilitate decision making
  7. To increase productivity
  8. To resolve conflicts
  9. To create a positive work environment
  10. To increase efficiency

Business communication is an essential part of a successful organization. Good communicators are vital to a business's profit margin and reputation. Employees who communicate well and understand the company's vision help make the company successful.

❗️ Clarity, conciseness, concreteness, correctness, completion, coherence and courtesy are the crucial principles of business communication. By using clear, concise and easy-to-understand language, you can ensure that the information is passed to an entity correctly without any ambiguity.

The Importance of Business Communication and Its Effectiveness

🔵 The Importance of Business Communication: 6 Reasons Why

  1. Building better teams
  2. Preventing misunderstandings and conflicts
  3. Improving customer service
  4. Meeting goals and earning success
  5. Promoting creativity and innovation
  6. Advancing individual career prospects

According to a study conducted by Loom, 1,500 workers are spending an average of 3 hours and 43 minutes a day communicating through various means, including emails, instant messages, video conferences, and phone calls. This is costing companies over $21 billion per week.

The importance of business communication also lies in:

  • Presenting options/new business ideas
  • Making plans and proposals (business writing)
  • Executing decisions
  • Reaching agreements
  • Sending and fulfilling orders
  • Successful selling
  • Effective meetings
  • Providing feedback to employees and customers

Business communication directly impacts your company’s operational efficiency, employee satisfaction and employee turnover, and external stakeholder satisfaction rates.

Despite this, many organizations struggle to implement strong communication practices.

A recent Harvard Business Review study found that communication barriers lead to delays or failures in project completion (44%), lost sales (25%), and missed goals (31%).

The way you communicate with your employees has a tremendous impact on employee productivity, teamwork, employee experience, and ultimately employee engagement.

Haiilo's Ultimate Guide to Internal Communications in 2024 reports that 44% of employees believe managers do not communicate clearly about the company's vision, and 72% of employees do not have a full understanding of the company's strategy. 60% of communications professionals do not have a specific strategy for measuring their internal communications efforts, i.e. don't know where to start, what the next steps are, or how to calculate ROI.

Effective business communication directly affects the external positioning, relationships with external stakeholders, their satisfaction ratings, as well as all aspects of the company's activities: from processes and efficiency to employee morale and customer satisfaction.

Thus, effective business communication is how employees and management interact to reach organizational goals. Its purpose is to improve organizational practices and reduce errors. It’s important to work on both your communication skills and communication processes to achieve effective business communication. 

🔵 10 Benefits of Effective Communication in the Workplace:

  1. Mitigated conflict
  2. Increased employee engagement
  3. Improved productivity
  4. Improved client relations
  5. Healthy workplace culture
  6. Improved direction for employees
  7. Boosted employee job satisfaction
  8. Increased innovation
  9. Strengthened team building
  10. Improved public impression

Effective business communication also helps keep stakeholders on the same page by providing critical information to all relevant parties. It can offer the following benefits:

  • Enhance collaboration: Strong communication makes it easier for team members to collaborate and work together, even when project details or policies change.
  • Improves efficiency: Better communication improves team collaboration. This directly boosts overall efficiency and productivity by avoiding delays caused by potential miscommunication.
  • Boosts employee morale: Transparent and direct communication allows employees to feel respected. Keep team members up-to-date on company policies and your expectations. This can increase employee engagement and morale, which can boost productivity.
  • Supports change management: Mitigate potential miscommunication during change management by clearly explaining any shifts in company processes, project requirements, and policies. You can help employees feel more confident in what’s changing and how it impacts them.


Types, Forms and Methods of Business Communication

Business communication is built on the basic forms of communication, has several different types and methods, and is not limited to speech. To be effective, attention should be paid to the tone and clarity of the message, regardless of the method of communication.

✔︎ Basic forms of communication:

  • Oral communication
  • Body language
  • Written communication
  • Space / distance
  • Voice modulation
  • Object language
  • Pictures / symbols / signs

🟧 Types of Business Communication

The two main types of business communication are determined by the audiences involved in business communication. Accordingly, business communication is divided into internal and external.

Internal audiences may include employees and stakeholders within the organization. External audiences may include customers, suppliers, and investors. Messages in business communication should be specific to the audience.

🔸 1. Internal Business Communication:

Internal communication in an organization can be classified as upward, downward, and lateral. This form of business communication occurs within an organization and includes information sharing, encouraging collaboration and cooperation, and aligning employees with managerial objectives, hence increasing the business's productivity and synergy.

1.1. Internal Upward Communication: This flows from lower levels of a hierarchy to the upper levels. Examples include performance reports, giving feedback to superiors about different aspects, and allowing employees to communicate their experiences and suggest improvements. It plays a crucial role in enhancing job performance.

Strengths of upward communication:

  • Allows for the exchange of information from direct reports to upper management.
  • Helps management respond to employee needs and identify problems before they escalate.
  • Promotes interaction across different levels in a company. 
  • Cultivates an open and friendly company culture. 

Weaknesses of upward communication:

  • Communication is hindered by existing power dynamics because employees may feel uncomfortable sharing information or being fully open and honest with superiors.
  • Employees are often limited by their level of access to management, and they need a clear channel of communication to successfully communicate up the organizational hierarchy.

1.2. Internal Downward Communication: This typically involves getting and receiving instructions and assignments from higher to lower levels within the organization, such as directives, memos, and policy announcements. Effective delegation and clarity in this communication help prevent misunderstandings and operational errors.

Strengths of downward communication:

  • Shares and disseminates information among the wider team.
  • Helps management delegate responsibilities and company priorities.
  • Communicates about the big picture (e.g., business goals, mission, etc.)
  • Enforces regulations that must be followed.
  • Addresses disciplinary action or promotions.

Weaknesses of downward communication:

  • Organizational hierarchy may stifle efficient communication because communicating messages from the top down is slow.
  • Messages may get distorted traveling down the organizational hierarchy. 
  • Downward communication without upward communication may leave employees feeling frustrated or undervalued.

1.3. Internal Lateral Communication: Communication that takes place between and among staff members at the same level, facilitating coordination and collaboration. This includes meetings, emails, and team briefings. Effective communication in this area ensures that tasks are understood and executed correctly.

Strengths of lateral communication:

  • Allows for knowledge sharing and problem solving.
  • Promotes team and interdepartmental cohesion and coordination.
  • Occurs quickly and without the need for top-level approval.
  • Supports employee productivity and morale.
  • Helps avoid conflict within and across teams. 
  • Prevents team silos and increases collaboration.
  • Lacks formality and lets workers speak openly.

Weaknesses of lateral communication:

  • There’s potential to foster an “us vs. them” mindset among separate teams.
  • Competition may hinder team cohesion and collaboration.
  • Lack of lateral communication may result in barriers that decrease productivity. 
  • Less formality in communication can result in misunderstandings. 

🔸 2. External Business Communication:

External communication is the communication between an organization and people or entities outside the organization, in this case, customers, the supply chain, shareholders, and the public. This category of business communication is used for marketing, customer engagement, and business relations to build, maintain, and develop business, commercial, or other associations to sell products or services or manage the image of an organization.

Your organization’s external communication should be a top priority because it manages your business’s reputation and outside relationships. 

2.1. Customer Communication: This is a business practice that involves the flow of information between the business and customers. This includes information transmitted by the consumer to another party, information exchanged with the consumer, messages that can be promotional, or any other information that may be passed or received by a consumer. Interaction with the customer is crucial as it generates confidence, satisfaction levels, and, hence, loyalty towards the brand.

2.2. Stakeholder Communication: Information sharing in stakeholder management involves all the communication with the various external parties like shareholders, suppliers, government, and the media. By establishing this category of communication, businesses can streamline their external stakeholder processes, simplify their supply chain management, and create a transparent and relevant flow of information, ensuring reliability.

2.3. Public Relations: This involves maintaining a positive and healthy brand image by actively addressing public issues and establishing a clear line of communication with the public and the media. Public relations involves issuing press releases, brand briefs, organizing and developing crisis communications, and providing information about the company. Public relations communication is a critical business tool for improving the current image of the organization, gaining public trust, and increasing competitiveness.

Strengths of external communication:

  • Builds a positive reputation for your organization.
  • Fosters beneficial customer/client relationships.
  • Helps promote company growth and success.

Weaknesses of external communication:

  • There’s potential to harm your company’s reputation using poor external communication.
  • When communicating externally, there’s less room for mistakes. 
  • If internal communication needs work, external communication may be a challenge.

🟦 Forms of Business Communication

There are four forms of business communication, and people in your organization should be well-versed in each. Understanding and using each form of communication will set you up for success and help you lead more effectively.

🔹 1. Verbal Communication

Verbal communication is the most common form of communication. It involves speaking words to convey messages and is the most direct and efficient way to communicate.

In the workplace, people communicate verballing all the time. You will talk with customers over the phone or in a video conference, and you will speak to coworkers or partners in person.

Verbal communication can also be supported by written and nonverbal communication, like in a speech or a presentation. You would use both verbal and visual communication to present a product or a business plan to stakeholders.

When utilizing verbal communication, keep these goals in mind:

  • Influence & Persuasion: Effective verbal communication inspires and motivates others to purchase your products and services.
  • Clarity & Understanding: Ask for (or receive) immediate feedback and clarification to reduce the risk of misunderstandings.
  • Relationship-Building: Communicating face-to-face, over the phone, and through in-person events builds trust with employees and customers.

For effective verbal communication, always be clear and concise. Keep your message simple and to the point. Be mindful of your tone and the pace of your speech, and encourage dialogue by asking open-ended questions.

🔹 2. Nonverbal Communication

Nonverbal communication refers to body language, gestures, facial expressions, posture, and eye contact. Our physical actions convey messages, and we can use them both intentionally and unintentionally with customers.

Here are some common forms of nonverbal communication that affect customer interactions:

  • Body language
  • Facial expressions
  • Distancing
  • Gestures

At work, nonverbal communication helps employees and customers feel understood, seen, heard, and respected. For example, you would smile when you hear a great idea from a coworker or maintain eye contact when a customer gives you feedback.

Some ways you can improve nonverbal communication are:

  • Clarification: Nonverbal cues provide additional context for what we’re saying. You can use them to convey your feelings or clarify what you’re talking about.
  • Building Trust: Nonverbal communication boosts trust and credibility. People feel more comfortable working with you if you have positive body language.
  • Emotional Connections: Try to avoid being a statue.

Facial expressions and body language convey emotions, helping you build lasting connections.

You can also improve your nonverbal communication by maintaining eye contact when someone is speaking to you, paying attention to your facial expressions, and being mindful of posture and personal space.

🔹 3. Visual Communication

Visual communication conveys information using images, charts, graphs, and infographics. When used properly, it’s a powerful tool for capturing attention and simplifying information. Since customers have different learning styles, visual communication is sometimes the best way for others to retain information.

In the workplace, visual communication is used for PowerPoints, infographics, and charts. It’s also used for posters, signage, and performance reports. These visuals are great for internal communication between employees.

Visual communication is also used for promotional videos, graphics, and social media visuals. TV ads and other videos about your business can catch the eyes of your audience and keep them visually engaged with your message.

Here are a few things to consider when utilizing visual communication:

  • Engaging the Audience: Visual elements capture people’s attention and make their experiences more memorable. Be sure to make them interesting and easy to read.
  • Reinforcing Your Message: Visuals provide additional context and help you clarify the main points of your message. Use bullet points and brief copy to support your graphics.
  • Keeping It Simple: Avoid putting too much information on your visuals — they will look cluttered and disorganized.
  • Consistent Branding: When you’re creating visuals for your business, make sure every element aligns with your brand’s style, colors, and fonts.

🔹 4. Written Communication

Written communication is the act of writing (or typing) to share information. It’s a common communication tool, often shared through books, blog posts, letters, emails, memos, and pamphlets. Written communication is the best way to document information, provide instructions, and maintain records at your organization.

Best practices for effective written communication include:

  • Reaching a Wide Audience: Written messages are shared quickly and efficiently with a large audience. Email and social media are two channels for sharing information with a wide audience.
  • Precision & Permanence: Write a document with answers to frequently asked customer questions (FAQs) or support guides that employees and customers can refer to whenever they have questions about your business.
  • Simplicity: Keep things clear and concise whenever possible. You can include a lot of information — just write it clearly and leave out unnecessary details.
  • Quality: Set aside time to re-read your emails and memos before sending them. You will identify mistakes and opportunities to improve your writing.

🟥 Methods of Business Communication

The two primary methods of business communication are synchronous and asynchronous. Understanding the difference between the two, as well as the benefits and drawbacks of each, can help determine which communication method to use.

♦️ 1. Synchronous Communication

Synchronous communication describes the real-time exchange of messages. It requires individuals and parties to be part of a conversation at the same time. It may also mean being at the same physical location, like in a face-to-face meeting. Examples of synchronous communication include phone calls, video conferences, instant messaging, and face-to-face conversations.

Pros:

  • Increased efficiency: Since all parties are present at the same time, there is no need to wait for a response or schedule another meeting. Getting everyone on the same page at the same time can be very helpful.
  • Increased collaboration: Since all parties are present, they can easily discuss any questions or concerns they may have. If one person has an idea, others can provide immediate feedback.
  • Real-time decisions: Real-time decisions can save a lot of time and avoid frustration.
  • Deep engagement: This is only possible with synchronous communication since all parties are present at the same time.
  • Improved relationships: Synchronous communication allows for more personal interactions and helps build trust.

Cons:

  • Requires time to coordinate: Since all parties must be present at the same time, this can be a challenge, especially if team members are in different time zones.
  • Requires all parties to be available: For synchronous communication to be effective, all parties must be available. This can be difficult, especially if team members have different schedules.
  • Can be disruptive: Synchronous communication can be disruptive if it is poorly planned. If team members are in the middle of a task and receive a meeting notification, it can disrupt their workflow.
  • Can lead to miscommunication: If not all team members are present or if they are inattentive, miscommunication can occur.
  • Limited to small groups: Synchronous communication is often limited to small groups

♦️ 2. Asynchronous Communication

Asynchronous communication enables information to be exchanged at any time. Participants using this form of communication can send information and respond at any time. Examples include emails; online forums and collaborative documents; as well as communications like letters, written articles, videos and even advertising.

Pros:

  • Flexibility to respond: There is no pressure to respond immediately, and you can respond at your own pace, when it suits you. If the person you are communicating with is in a different time zone, this can be a way to avoid disturbing them at an inconvenient time.
  • Time to think: If you need to gather information or want to compose a well-thought-out message, you need time. If you are communicating with a foreigner, you can take the time to use a translation tool or get help from a bilingual friend before sending your response.
  • Reduced pressure: There is no pressure to respond immediately. You can also avoid potential misunderstandings that can occur when messages are exchanged quickly, without time to think about what is being said.
  • Fewer distractions: This can help you focus on the task at hand and not be distracted by other things happening online.
  • Written notes: This can be useful if you need to refer back to something that was said or if there is a disagreement about what was discussed, as well as for future reference.

Cons:

  • Delayed Feedback: It may take longer to get feedback from the person you are communicating with. This can be annoying.
  • Less Personal: It may feel less personal than an in-person conversation or a phone conversation. This can be a problem if you are trying to build a relationship with someone or resolve a conflict.
  • Miscommunication: If messages are unclear, there is a risk of miscommunication. This can happen if messages are misinterpreted or if important non-verbal cues are missing.

In a study conducted by Grammarly, a new business communication ecosystem is taking shape:

Employees are communicating 18% more in writing and prefer to use asynchronous communication channels. However, managers report a 12% drop in written communication effectiveness over the same period and a “decrease in productivity.”

❗️ Business methods of communication can also be broken down into different categories, which are business communication methods. They are:

  • Electronic communication
  • Non-electronic communication
  • Written communication
  • Verbal communication
  • Visual communication

There is some relationship between these terms since written communication can be either electronic or non-electronic, just as the visual method of business communication is based on electronic, non-electronic, written and verbal methods of business communication.

🔺 3. Electronic Communication

Almost all businesses use electronic communication these days. It’s become vital to the everyday management of workforces all over the world, especially in remote work.

There are many different types of electronic communication. They include:

  • Email
  • Text messaging
  • Voice and video calls
  • Employee intranet and HR software.

These methods of communication can be used for a range of different purposes. But not all of them are suitable all the time.

For example, you wouldn’t text an employee about sensitive issues, such as redundancies or grievances. Many employment issues have a specific process you must follow which can include written agreements or face-to-face meetings.

A good rule to follow is to:

  • Use emails and texts to discuss everyday work.
  • Share important documents via email.
  • Set voice or video calls where a face-to-face meeting isn’t possible.
  • Add non-essential company-wide updates to your employee intranet.

You can also use software for people management. BrightHR lets you manage loads of HR essentials, such as, annual leave requests, sick leave and staff rotas.

🔺 4. Non-electronic Communication

Non-electronic business communication includes:

  • Face-to-face meetings
  • Physical copies of documents, such as reports, payslips, and invoices.

It also includes the use of hand signs, tone of voice, and other physical aspects during face-to-face meetings. It expands the content of the communication and shares details that might not be said orally, such as the mood or intentions of the speaking individual.

Many businesses have moved to a paperless system in recent years. Going paperless is better for the environment, space-saving and, with cloud-based systems, means you can access your documents from anywhere.

However, there are some documents that require a physical non-electronic copy. You may need to submit physical paperwork to the government as part of your tax and employment records.

🔺 5. Written Communication

As mentioned above, you can have written forms of communication in both electronic and non-electronic formats. Written communication is any message that uses the written word.

This method of business communication ensures that information is formally documented, leaving a traceable and permanent record. There are also various subsets within this method of written communication:

  • Written emails
  • Written letters
  • Written memos
  • Written contracts
  • Written reports

Using methods of written communication can keep your business safe and compliant with employment law.

Written communication can save time, money and create a record of what was said and done. Keeping these records can help to prevent unfair dismissal claims.

You should have written copies of all your workplace policies, and employment contracts for staff.

🔺 6. Verbal Communication

There are many verbal methods of communication used in business. Including:

  • Meetings and job interviews
  • Presentations and some training
  • Conversations between employees

This comprises instruction transmitted through spoken words, including various subtypes, such as interpersonal, face-to-face, telephone, or video conferencing, for swift and effective information exchange.

Any form if spoken word counts as verbal communication. These business methods of communication are typically used for less formal matters.

This is because you should keep written correspondence for anything that could have a significant impact on the way your business operates.

Despite that, there are times where a face-to-face meeting is required. It’s a legal requirement to hold a consultation meeting with employees when deciding on redundancies.

🔺 7. Visual Communication

Visual communication refers to passing information through:

  • Presentations
  • Graphics
  • Videos

It also helps raise the level of knowledge and memory due to the use of text and images, making it easier to illustrate concepts that might be hard to grasp.

According to Ph.D. Fabricio Pamplona, the human brain processes images around 60,000 times faster than text—it takes only 13 milliseconds for the human brain to process an image, and 90% of information transmitted to the brain is visual.

Presentations

Speaking and presentation are the main categories of business communication, which include the transmission of information through text, images, and other aspects of multimedia. An effective presentation helps illustrate problems and solutions in a concise and logical manner. Using an effective presentation template ensures that your information is organized and presented in the best possible way.

Infographics

Infographics can be defined as a method of communicating information and data through graphics and text to convey information in a systematic manner. Many of them use graphical features such as graphs, charts, and diagrams to present statistics, processes, and trends. Infographics can also be used for promotional purposes, to communicate with employees or other stakeholders, and for educational purposes.

Videos

The use of videos in business communications has become quite popular as they are able to capture the attention of the audience and convey information through dynamic images. Videos are becoming an increasingly popular means of communication for marketing and brand awareness purposes. They can be used on websites, apps, social media platforms, emails, etc.


Key Business Communication Channels

Communication channels are the medium through which information is transferred internally within an organization (employees, managers, owners) or to its external stakeholders (customers, suppliers, investors). These channels are essential for conveying ideas, sharing information, making decisions, managing operations, and achieving organizational goals.

These communication channels are typically classified as external or internal communications, depending on the recipient of your message:

  • External channels are for communicating with customers, partners, prospects, and clients outside your company.
  • Internal channels facilitate communication between employees, management, and other team members.

And these channels can then be subdivided into categories based on their formality, focus, purpose, and technology used.

12 Key Workplace Communication Statistics

The Importance of Effective Workplace Communication – Key Statistics for 2024 from Expert Market provided us with main trends. How is the working world communicating and what are the common trends? Here are the crucial statistics on workplace communication:

  • 86% of employees cite the lack of effective collaboration and communication as the main cause of workplace failures.
  • Improving internal comms can improve organizational productivity by as much as 25%.
  • 97% of employees believe communication impacts their task efficacy every day.
  • 16% of managers feel uncomfortable speaking face-to-face with employees.
  • Poor communication is affecting trust for 45% of workers.
  • When employees are offered better communication technology and skills, productivity can increase by up to 30%.
  • 28% of employees cite poor communication as the reason for not being able to deliver work on time.
  • Poor communication in the workplace reportedly accounts for a loss of 7.47 hours per employee, per week. For the whole market, these losses are estimated to be around $37 billion a year.

❗️ Communication channels in the workplace fall into two main categories: synchronous and asynchronous channels. Here above, in the methods of business communications, synchronous and asynchronous communication are described. Combining these communication methods achieves the best results.

Top Communication Channels

1️⃣ In-person communication

In-person conversations are one of the most effective channels of communication in the workplace. Talking to someone in person allows you to use both verbal and nonverbal communication cues, which can help improve the quality and efficacy of your conversations.

Face-to-face communication is when two or more people interact and communicate while visible to one another. Face-to-face communication is often more effective than written or audio-only conversations. Essential for team-building and key meetings, in-person interactions allow people to communicate in several ways: listening, verbal communication, and nonverbal communication.

Pros:

  • It keeps employees in the loop
  • It keeps employees in the loop
  • It’s quicker and more efficient
  • It boosts engagement
  • It builds trust
  • It can make you more persuasive

Cons:

  • You’re part of a global remote team
  • You want to schedule an event
  • You only need to check something
  • You want to share information with your whole team
  • Your team has Zoom fatigue

2️⃣ Video conferencing

Videoconferencing platforms allow for communication that includes both verbal and nonverbal cues, much like an in-person conversation does which allows for a more personal interaction than an email or phone call.

With the advent of globalization, remote work, and virtual teams, businesses are increasingly turning to video conferencing. They are using it to bridge geographical gaps and streamline operations. However, like any technology, video conferencing comes with its own set of advantages and disadvantages.

Pros:

  • Enhanced communication
  • Cost and time savings
  • Global collaboration
  • Flexibility and remote work
  • Increased productivity
  • Real-time document sharing
  • Environmentally friendly

Cons:

  • Technical issues
  • Lack of personal interaction
  • Security and privacy concerns
  • Dependence on technology
  • Cultural and language barriers
  • Meeting fatigue
  • Distractions and multitasking

3️⃣ Phone calls

Phone calls can clear up confusion or convey new information across long distances and conference calls can allow multiple people to take part in a conversation. Phone calls lack the nonverbal cues of in-person conversations or videoconferencing but may provide a simple communication channel for customers and employees.

Telephone communication is the most popular method of communication, having been around for more than a hundred years in various forms. The land line telephone is still important for business and home, however mobile phones are fast becoming the favoured technology.

Pros:

  • You get immediate feedback to things you say.
  • The conversation is relatively private between you and the caller - although others might be able to hear what you are saying.
  • You can call someone anywhere on the planet.
  • Calls can be made 24 hours a day, 7 days a week.
  • Internet based calls can be free.
  • Internal calls within a business are usually free of charge.
  • Most people have a telephone. No specialist equipment is needed.
  • If there is an answerphone, you can leave a message if the person isn't available to take your call.
  • If you don't know the telephone number you need there are plenty of services which will help you get the number (although they can be quite expensive).

Cons:

  • The person must be available to take your telephone call.
  • The line might be engaged when you call so you can't speak to the person when you want.
  • You generally have to pay for every minute you spend on the call. In the case of mobile or overseas calls, that can be expensive.
  • There might be noise or interference so the quality of the call could be poor.
  • With mobile calls you might move out of the range of a transmitter and so the call gets cut off.
  • You cannot see each other's body language so a lot of the non verbal communication is lost.
  • It is not easy to make a record of what is said during the call. Things might be forgotten or mis-interpreted.
  • With standard telephones, only spoken information can be exchanged - you can't send files. Smartphones however do have this facility.

4️⃣ Instant messaging

Instant messaging platforms and boards allow teams to communicate instantly and directly with one another. This type of platform can help increase overall communication between team members and ensure everyone in the project is kept up to date.

Each person must have an 'Instant Messaging' (IM) client open on their computer.

The difference between email and Instant Messaging is that the IM window shows the message almost as soon as it is typed - no downloads are required.

Business

This kind of service is used by business people to help keep in touch whilst on the move. Imagine a work colleague is at the airport waiting for a plane connection, they can use Instant Messaging to 'talk' to colleagues in the office - it is a good way to keep on working (and avoid the sheer boredom of waiting for a plane!) despite being away from the office.

Customer Support

Many online services have a website that also has a 'chat' facility. This allows you to make contact in real-time with a customer support assistant. For example, you may be having a problem filling out the online order form, so you click on the 'chat' and up pops a window where you can ask a question to staff.

Home

It is also used at home. For example, you are online doing your usual stuff on the Internet, but online game you have an IM window open because friends and family are also online. You chat whilst each of you are online.

Pros:

  • Allows you to chat in 'real time' to other people who also have an IM client.
  • IM allows you to get on with other things and yet be in touch real time with connected friends and colleagues.
  • Useful for customer support contact instead of having to phone a support line.

Cons:

  • As it is immediate, you have no time to reflect on the message you are sending, unlike an email where you can review the draft before sending.
  • In order to provide a free service, the IM providers send adverts and popup windows to each person. If you want to avoid this, you need to pay for a 'premium' service.
  • Unless you set up your IM client carefully, anyone can send you a message - not always a good thing.

5️⃣ Short messaging service

SMS stands for Short Messaging Service. It is available on all mobile phones. SMS on the mobile phone allows you to send short (up to 160 character) text messages to someone else's mobile phone. It is incredibly popular, with over 2 billion people using it around the world.

Pros:

  • Can send them at any time, day or night.
  • Person you are sending it to do not have to have their mobile phone switched on.
  • Can save time sending a message rather than interrupting someone with a phone call.
  • Good for informal messages.
  • Good for helping friends and family keep in touch.

Cons:

  • Only short messages can be sent.
  • Needs nimble fingers to use some tiny mobile phone keypads.
  • Needs basic typing skills.
  • Can take some time to compile a message if you are not familiar with text speak shortcuts.
  • Text speak spills over into written school work and formal communication.
  • Should not be used for serious formal messages such as 'You are sacked'.

Businesses are also increasingly adopting SMS as a key communication channel for their customers, thanks to its exceptionally high open rate of 98% (while email has an average 20% open rate). This high engagement rate makes SMS a no-brainer for many companies, with 90% of them reporting successful SMS marketing campaigns.

6️⃣ Email

E-mail stands for 'Electronic Mail'. Email is one of the most popular written communication channels that sends information via text messages. It is a great channel for sending or receiving attachments and communicating with a large group of people. A short email can quickly convey information and takes only a few minutes to write. Organizations use the email communication channel to share important work documents and provide employees with regular company updates.

Email is the reliable digital workhorse of business communication, with workers receiving an average of 65.5 emails per day and sending 24.6 emails per day. 

Each E-mail user has a 'mailbox' with a unique address into which messages can be sent ready for the recipient to collect and read.

If you have an account with an Internet Service Provider (ISP) such as Yahoo then they will provide you with an email address and let you use their email service for no extra cost. You can also get an email address from one of the many free providers such as Hotmail or Gmail.

Smart phones can download your emails so you can read them anywhere, they also allow you to send emails.

You can also attach files to an email, for example a word document or spreadsheet.

Pros:

  • Sending an email to someone is very easy, people need little training to learn how to do this.
  • Emails are free to send, as long as you have an email account and a connection to the Internet.
  • Emails are usually received fairly quickly, most of the time a couple of seconds after they are sent.
  • People don't have to be present to receive the email.
  • Emails can be sent any time of the day or night, 365 days a year.
  • Files and images can be attached to an email.
  • Multiple copies of a message can be sent to a group of people.
  • A carbon copy of an email can be sent to other people.
  • You can request proof of receipt or proof of the email being opened.
  • Messages can be prepared in advance and saved until you are ready to send them.
  • Messages can be encrypted making it possible to send confidential information.

Cons:

  • Both you and the person receiving the email must have an email address and access to a computer or device that can access the Internet.
  • If you don't know the email address of the other person then you can't send them a message.
  • Some people change their email addresses fairly often as they switch ISPs or jobs.
  • Spam is a big problem, up to two-thirds of mails sent are spam.
  • People can waste company time at work by sending emails to friends instead of working.
  • When you are on holiday, your email box can become full and extra messages might not get stored.
  • You may have to wait a long time to get a reply.
  • Email attachments can contain viruses.
  • Some companies won't allow email attachments to be received.
  • There are a lot of email scams and it is easy to get fooled by them.

The evidence against email can be overwhelming: 81% of global organizations have experienced an increase in email phishing attacks in the last couple years, and 94% of organizations fell victim to these traps in 2022.

7️⃣ Written documents

Written documents are a communication channel we can use to share important information, news, or statistics with other people.

Some documents commonly used for internal communication are:

  • office circulars
  • office orders
  • HR documents
  • company policy documents
  • resumes
  • legal documents
  • applications
  • suggestions

These documents provide a sense of authority and contain essential official information. For instance, during the onboarding process, the HR department provides an employee handbook that contains details about the organisation's history, procedures, missions, policies, values and employee benefits. This helps communicate the organisation's expectations and provides written proof. Also, documents can contain both images and text to deliver the right message to the recipient.

Pros of written documents:

  • They are concise and accurate (most of the time).
  • Bring a concrete value to a reader (statistics or information).
  • Saves the sender from potentially difficult conversations at work (for example, about poor performances),
  • They are easy to save.

Cons of written documents:

  • Lack of instant feedback.
  • Lack of human relations.
  • Red tape — language is more formal and there might be some demanding procedures that you need to follow.

Pros of file sharing:

  • Saves time
  • Eliminates multiple file versions
  • Saves money
  • Prevents lost data
  • File permissions limits access

Cons of file sharing:

  • Potential proprietary data/plagiarism issues
  • Requires sufficient network/bandwidth speeds
  • Higher risk of files being shared publicly
  • Increased risk of files being infected

8️⃣ Live chat

Live chat is a real-time communication channel that allows businesses to connect with website visitors and customers directly through a chat window embedded in their website or mobile app. Think of it like the digital version of a conversation with an employee in a brick-and-mortar store, where customers can ask questions, get clarifications, and receive assistance in real time.

Most live chat features rely on AI to answer frequently asked questions and only give you a real person if requested. Online chat can support sales, customer service, and many other departments.

Pros:

  • Real-time support
  • Easier for your customer service reps
  • Increases conversions
  • Not disruptive
  • Builds relationships
  • Everything is in writing
  • Customer feedback

Cons:

  • Not good for every demographic
  • Bothersome pop-ups
  • Limits to AI
  • Requires someone to monitor
  • Timely set up
  • Can be costly
  • Privacy concerns
  • More channels to monitor

As you have seen above, it is pivotal to have customer service that will not be counterproductive (i.e., rude or disinterested) since 97% of consumers have stated that their loyalty to a brand depends on their interaction with the support service.

9️⃣ Social media

Social Media is a powerful tool that can drive your business’s success. Social media platforms like Twitter, TikTok and Facebook are used by everyone from Elon Musk to POTUS, and can dramatically impact the rise and fall of stars, businesses, politicians, elections and celebrities today.

A LinkedIn study reported that 90% of marketers swear by the usefulness of social media in increasing the exposure and brand awareness for their business. 75% said that social media increased website traffic, which directly translates to an increased number of customer visits. 

Furthermore, an impressive 71% of customers who have a positive experience with a business through social media usually recommend the brand to others in their circle! 

According to LinkedIn, with over 3.5 billion active users on social media, by marketing through platforms like Facebook, YouTube etc, businesses can tap into the reservoir of potential sales and profits.

The use of social media can provide several benefits to businesses, such as generating leads, increasing brand awareness, and providing market data. But it also has several disadvantages, including the risk of ruining a company’s reputation, the demand for constant attention, the potential for privacy breaches, difficulty in keeping up with trends, and the challenge of tracking social media ROI.

Pros:

  • Generates business leads
  • Social media is affordable
  • Social media increases brand awareness
  • Helps provide market data
  • Social media is a platform for interacting with customers

Cons:

  • Social media can ruin your reputation
  • Demands constant attention
  • Social media can risk the company’s or customer’s privacy
  • Trends can be difficult to keep up with
  • Difficulty in tracking social media ROI

🔟 Business Blog

Business blogging is a way to build trust with consumers. It can be an especially valuable resource for businesses that are selling a product or service online, as it connects the company's expertise with the offering on the website. When starting a new business, or when working in marketing, you can use a blog to convince potential customers to make a purchase.

Pros of blogging:

  • Making money online
  • Achieving more freedom in life
  • Growing your reach and increasing your visibility
  • Being flexible with your blogging work
  • Helping others with what you know
  • Working with something you love
  • Having fun and being creative
  • Learning new skills
  • Networking with others
  • Working from anywhere
  • Promoting and selling your own products
  • Being your own boss
  • Finding new career opportunities
  • Challenging yourself
  • Starting a blog is cheap

Cons of blogging:

  • Committing to a regular blogging schedule
  • Following a strategy
  • Staying consistent
  • Needing decent writing skills
  • Worrying about privacy issues
  • Feeling overwhelmed from time to time
  • Needing organization skills
  • Having to invest (a little)
  • Needing patience (to see results)
  • Requiring some tech knowledge
  • Wearing a dozen hats
  • Needing time to gain momentum

Best Practices for Effective Communication

With a growing number of companies maintaining remote work, best practices for clear and productive communication are very important.

Here are several best practices from Nextiva that in-office, hybrid, and remote-first companies can adopt to manage their communication and simultaneously boost their productivity:

  • Distribute your message across multiple channels: Having different types of communication channels increases the impact of your message, meets more of your team’s varied communication needs, and aligns your message and your recipient with the right channel.
  • Use a single business communication platform: Choosing an all-in-one business communication platform takes the stress out of managing the security and privacy demands of multiple platforms. Increase engagement and productivity by having all of your communications in one central hub.
  • Opt for asynchronous communication for efficiency: Asynchronous communication tools (email, recorded video, team chat, chatbot, etc.) allow team members or clients to consume and respond to messages at their own pace, making work more enjoyable.
  • Tailor communication to the audience: Understand the needs, preferences, and cultural backgrounds of your audience to tailor your message accordingly. For instance, older generations may prefer phone calls or emails over social media messages. This ensures that the message is received as intended and can significantly improve engagement and understanding.


Nataliya Kholod

Team Manager, Financial Analyst @ Financial Sector, Banks | Master's in Economics, Banking Strategy, M&A, Cross-Border Transactions, Corporate Banking, Risk Assessment Expert

1w

Dear LinkedIn members in my and your networks, we will definitely continue #BusinessCommunication and talk about assessing and improving high-demand business communication skills. No matter what industry you work in, practical business communication skills are essential to support your career advancement. Business communication skills can encompass hard and soft skills that help professionals succeed in the workplace.

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