The findings of a recent survey conducted in cooperation with the Croatian Employers Association emphasize that despite high investments in internal communications, many companies still fail to optimize this area of their business.
If companies are investing resources in improving internal communication, it would be worthwhile to examine how beneficial this investment is in terms of company profitability.
Written communications, internal newsletters, communication platforms, intranets, visuals, video messages, and Townhall meetings are all activities that have been stylistically perfected and even awarded in their respective fields. However, the extent to which they truly impact value creation and profitability remains largely unexplored. One reason for this is that the concept of internal communication is often equated solely with the transmission and reception of information. Organizations rarely look at communication and interaction in their entirety—specifically, how it flows, the obstacles that hinder it, and what aspects unleash its potential for value creation. Additionally, it is essential to understand how a common context is created within the organization to ensure profitability.
In October 2024, a survey qohubs conducted among 555 employees of Croatian companies in cooperation with the Croatian Employers Association aimed to cover the overall communication landscape — examining the processes of sending and receiving information, meetings, and both formal and informal conversations.
While the results were anticipated, two findings may prompt a reevaluation of current beliefs and practices surrounding organizational design. First, it is concerning that 4.36 billion hours have been spent on work activities that do not contribute to productivity or collaboration. Second, employees displayed a strong ability to identify what is relevant and useful to them, with discussions with colleagues (73%) and team meetings being their top priorities.
The Importance of conversation
One of the key insights from the research highlights the importance of conversation, both within teams and between them.
A significant 87% of respondents from large companies believe that increased communication between teams is essential for organizational success.
This suggests a growing awareness of the drawbacks posed by organizational silos, as well as the limitations of communication that occurs through various platforms, applications, and intranets. Employees need open discussions, and decisions about where and how these discussions will take place should be made by those responsible for strategic and operational organizational design.
Given the dynamics and complexity of today’s business environment, it is essential to provide a variety of suitable formats for exchange and conversation, both within teams and among them. However, it is crucial to recognize the difference between communication and conversation in this context.
Creating your own truth or Transparency
The survey showed that employees spend an average of two hours a day acquiring information via the internal newsletter, intranet, e-mails, and video messages.
At the same time, 71% claim that they need more information to succeed, which raises the question of the relevance of the content they receive.
It is extremely important that key information is available to everyone and there are digital solutions that will enable employees to access information. This solves half the problem. The other half of the problem is hidden in the still-present linear thinking about communication in the category of sender and receiver of the message, ignoring the fact that communication is a circular process and that every message, no matter how unambiguous it may seem, hides room for numerous interpretations. For example, when a person interprets information in a different way than the person who wrote it, the reader's condemnation is an inevitable companion - which is a completely wrong reaction - common, but bad for work and cooperation, because it indicates a lack of appreciation for the fact that information without context is dead letters on paper.
The role of informal communication
Regardless of the communication and decisions made within the formal structure, conversations, resistances, dissatisfactions, and fears often emerge at the informal level. This informal communication can significantly influence value creation (or lack thereof) and also foster solidarity among employees. This understanding is rooted in the insights of Mary Parker Follett, known as the "mother of modern management" and a pioneer in organizational behavior. Follett identified that every employee participates in three types of leadership structures:
Positional leadership (formal hierarchical communication)
Personality leadership (informal communication)
Functional leadership (communication that occurs during value creation)
Her observations suggested that most attention is typically given to the first two types of leadership. However, for today's management to succeed, there should be greater emphasis on the third type. Learning to observe behavioral patterns and interactions among employees can help facilitate meaningful discussions about work and collaboration, ultimately reducing the need to seek answers in informal settings.
Wake up call
In 2023, if we consider the number of employees in legal entities and multiply it by 43%—which reflects the respondents who believe the information they receive is not useful for their work and collaboration—we can calculate an alarming figure. Additionally, if we factor in the 2 hours they invest each day, multiply that by 251 working days in a year, and use the average cost of a working hour in the Republic of Croatia, which is 14.4 euros, we arrive at almost 4.4 billion euros.
This means that in the Republic of Croatia, we invest approximately 4.36 billion euros annually in working hours that are not beneficial for work and cooperation.
The pressing question is: What can we do, and what are we willing to do, to transform this significant amount into a profitable investment?
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This is where qohubs comes in and you can try it out for free with your team. Contact us to schedule an Experience Session now.
*An adapted version of the article appeared in Croatia's premier entrepreneurs magazine "Entrepreneur" in February 2025.
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