Arthur J. Gallagher & Co. AJG

ROLLING MEADOWS, Ill., Feb. 21, 2023 /PRNewswire/ -- While three-quarters of employers (74%) say the purpose of their internal communication strategy is to shape the culture and create a sense of belonging, only half (56%) believe their employees understand the organization's strategy, vision and purpose, according to Gallagher's 2022/2023 State of the Sector report. The gap exists at a time when employers and their people are navigating a host of variables, such as economic uncertainty, global conflict and the transition back to the office.

"Gallagher's State of the Sector report provides clarity on the types of information organizations share with their teams, how they're delivering messages and gaining an understanding about whether internal communication programs are making an impact," said Ben Reynolds, Global Managing Director, Employee Communication Practice, Gallagher.

The Gallagher study, which drew insights from more than 2,000 communication and HR leaders from over 50 countries, was created to learn the ways employers are evolving their internal communication programs to achieve their goals. In 2023, engaging teams around purpose, strategies and value was, for the second year in a row, the top priority for most communication and HR leaders (51%). Developing or refreshing internal communication strategies emerged as the second priority (35%), replacing 'adapting channel strategies to hybrid working' (39% in 2022 to 19% in 2023), which dropped significantly as more organizations welcomed employees back to the workplace.

Shaping Culture Through Internal Communication
At its core, internal communication is designed to convey strategy, followed by creating alignment around the organization's vision and purpose. This remained the most commonly communicated topic in 2022 (45%), but in recent years, communication and HR leaders have placed more of an emphasis on shaping workplace culture and creating a sense of belonging. As a result, diversity, equity and inclusion (DEI) became the second most frequently communicated topic in 2022. However, just 4 in 10 organizations admit to having a clearly defined DEI strategy, with another 38% still working on it.

"Even though many organizations are struggling to develop and execute on a DEI strategy, employers are deploying a range of tactics in an attempt to make positive strides," Reynolds said. "This includes awareness days or events (54%), employee resource groups or champions (48%), DEI training (45%), and a host of others. Leaders are looking to embed DEI throughout their communications, rather than through tactical siloed approaches. However, there's still room for improvement."

After another year of alarming climate change developments, the State of the Sector report explored how organizations embed their Environmental, Social and Governance (ESG) commitments into their employee experience. More than one-third of organizations (36%) don't communicate ESG goals at all. Of those employers that do communicate ESG goals, the primary objectives are to inform employees of the organization's ESG commitments and activities (26%) and encourage employees to support their local communities and charities (13%).

Rebalancing the Employer-Employee Relationship
Over the last three years, organizations have reflected, recalibrated, and redefined the employee experience, largely a result of Great Resignation when employee recruitment and retention consumed leadership teams. As the labor market began to turn in 2022, 56% of employers said they were revisiting their employee value propositions (EVP). Whereas EVPs have historically focused on talent attraction, the 2022/2023 State of the Sector report identified a shift toward talent retention through an emphasis on career wellbeing. To this point, many employers appear underwhelmed with their organizations' efforts. In fact, only half of those surveyed (53%) rate their employees' understanding of compensation, rewards and benefits packages messaging as either 'excellent' or 'good.'

Questions also remain about how employee feedback shapes organizations' EVPs. The majority of respondents (84%) believe their organizations value employee feedback, and nearly two-thirds (65%) said their organizations do a good job learning from this input. A deeper dive into how organizations gather feedback found nine channels, such as surveys, email, and one-on-one interviews, were utilized by at least one-third of respondents. But the mere presence of channels does not necessarily mean they are fully utilized.

Navigating Uncertainty
Communication and HR leaders have faced countless obstacles since the onset of COVID-19. In 2023, respondents indicated lack of time and capacity (34%), disengaged employees (30%) and budget constraints (24%) were the biggest challenges to building stronger and deeper employer-employee connections.

"While budgets will remain tight for most organizations, it's important to understand today's employees expect much more than a paycheck from their employer," Reynolds said. "They choose to stay at an organization because of its culture and values and the emphasis placed on employee wellbeing. Accomplishing this, while authentically weaving purpose and meaning into internal communication, will allow organizations to overcome challenges and reach their goals."

ABOUT STATE OF THE SECTOR
Gallagher's 2022/2023 State of the Sector report is based on data collected from more than 2,000 organizations across the world from October to November 2022. Organizations of all sizes and more than 30 industries participated. The report highlights Gallagher's consulting approach, which centers on the full spectrum of organizational wellbeing by strategically investing in an organization's employee health, talent, financial security and career growth potential. We develop benefit and HR programs at the right cost structures to deliver a better employee experience and support a multigenerational workforce.  Gallagher Better Works^SM, a comprehensive approach to benefits, reward, retirement, employee communication and workplace culture, aligns an organization's people strategy with its overall business goals. The report can be found here.

ABOUT GALLAGHER
Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

Contact:         
Mary Schwartz, Gallagher
847.378.5893
mary_schwartz@ajg.com

 

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SOURCE Gallagher