Information that is routinely communicated to investors, such as brand vision, purpose, and strategy, should also be communicated with employees. Research shows that this would have a positive impact on employee engagement and performance.

Emperor, a UK brand and communications agency, has released a white paper that advocates effective, connected communications between investors and employees. The paper, titled ‘Using investor communications to raise business performance’, argues that many companies do not integrate investor and employee communications, and states that employees are often required to translate or contextualise reports in order to find relevance.

The report says, “Individual employees want to know what business vision, purpose, strategy and performance means for them. This information influences their feelings of pride and trust and decisions about their futures. Plus, there is strong evidence that effective employee communications concerning vision, purpose, strategy and performance have a positive impact on business performance”.

In contrast the report suggests that many employees do not fully understand their company’s strategies, which has a negative impact upon business performance. A Stepstone study in 2012 found that only 41% of employees are clear about their company’s strategy, while 22% have only a vague understanding.

Mark Van der Kinderen of Stepstone says, “Employees feel they can’t do their jobs properly if they don’t know the strategic path their employer is following. If you don’t communicate it clearly, you run the dual risk of employees thinking their company doesn’t have a corporate strategy and showing a poor level of commitment, which will have a negative effect on productivity.”

The report encourages investor relations practitioners to diversify into employee communications and provides three key guidelines for effective communication on both counts: ‘Incorporate reporting-generated content’, ‘Ensure and maintain relevance and clarity for different employee audiences’, and ‘Coordinate the timing of performance announcements’. Using these guidelines should help encourage more effective communication, engage employees, and thus improve business performance.