Wasted communication efforts costing UK SMEs £74 billion annually

Wasted communication efforts costing UK SMEs £74 billion annually

The cost of ineffective communication in the workplace within the UK’s 5.5 million small and medium sized businesses is skyrocketing, experts have warned.


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Communication experts from TelephoneSystems.Cloud have calculated that the time lost due to these inefficiencies amounts to an eye-watering £74 billion a year.

​​They say the stakes are high for businesses needing to scale their operations in line with communication advances as competitors reap the benefits.

Experts are urging SMEs to take advantage of cloud based technologies to provide their employees with unified communications to reduce inefficiencies.

Combining voice calling, video conferencing, instant messaging and content sharing into one transparent interface has helped accelerate the growth of thousands of businesses by increasing workplace productivity.

On average, in the UK, it has been reported that 13.56% of an employee’s day is wasted because of communications inefficiencies, which equates to more than an hour a day in an average 40-hour working week.

In the UK alone, poor communication solutions in the workplace have been found to cost SMEs over £74 billion in wasted time, which equates to £4,513 annually per employee.

Juliet Moran, from TelephoneSystems.Cloud said: “Our findings shed light on the significant impact of ineffective communication in modern-day businesses, especially with the rise of dispersed workspaces.

“SMEs still relying on more traditional communication methods based on legacy technology must rethink how this affects productivity and engagement in their business.

“An effective communication system is the backbone of a successful business as it improves productivity, leading to growth and boosting morale.

“On the other hand, the consequences of ineffective communication in the workplace is lost business, employee attrition and missed opportunities, which has enormous implications.

“SME leaders must upscale their communication systems and invest in building better practices to evolve in the current market and enhance the efficiency and quality of their business.”

Reportedly, UK employees waste more time daily due to ineffective communications efforts than the global average, translating to more money and time wasted than overseas competitors.

There is a huge desire and need for internal changes in businesses, with 82% of employees saying that their work productivity would be improved with better communication tools.

Technological advances make communicating in a post-covid climate, where working from home is the new normality, seamless and provides a path for businesses to stay better connected.

However, many SMEs have failed to adapt to the changing technological landscape and still rely on more traditional communication methods like face-to-face meetings, where one-fifth of time is wasted.

With advancements in technology transforming workplaces, updating communication initiatives should be considered a strategic investment for business leaders to stand a chance in the modern market.

Written on 2023-04-15 by Juliet Moran

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