Top-performing employers apply performance metrics to their employee communication campaigns to monitor workers' engagement and the programs' impact on the bottom line, reports Watson Wyatt.

Nearly half of companies now routinely measure employee behavioral changes to gauge the effectiveness of internal communication strategies. The practice has increased almost 25% since the 2003/2004 study, Watson notes. More employers are starting to view employee communication as a key business driver.

Moreover, the report suggests that employers that invest in employee communication typically earn higher financial returns.

Methods implemented by employers with effective employee communication programs include focus groups to obtain employee and manager feedback and candid sessions about the company's business goals and objectives.

Watson Wyatt also finds that more employers are taking action to increase employee enrollment in benefits programs, but there has been a pull back on providing personalized educational materials on income needs in retirement.

The study identified these six communication practices of high-performing companies:

• Focusing managers and other employees on customer needs;
• Engaging employees in running the business;
• Helping managers communicate effectively;
• Leveraging the talents of internal communicators to manage change effectively;
• Measuring the impact of employee communication and
• Branding the employee experience.

"Effective communication programs address the whole gamut of employers' relationships with employees, and help engage and motivate workers," says Kathryn Yates, global director of communication consulting at Watson Wyatt. "Companies that communicate effectively with employees have an engaged workforce and superior financial results," she adds.