Internal communication challenges facing software and high-growth tech companies

Remote and hybrid work has made effective internal communication even more critical to team morale and company success.

• Why it matters: When internal communication breaks down, so does productivity, engagement, and innovation. In software and high-growth tech companies, these breakdowns can derail product launches, delay projects, and divide teams. 

More than 40% of leaders say that better employee engagement is a direct result of effective communication — followed closely by better team collaboration and productivity. To remain agile and innovative, tech companies must address key internal communication challenges head-on.

Challenge #1: Measuring impact and ROI

Nearly 70% of internal communications professionals admit that measuring the ROI of their efforts is a challenge. There are a few of reasons for this:

• Lack of tangible metrics: You can measure how many people opened an email or attended a meeting. However, understanding whether those actions directly led to higher employee engagement or better productivity is much harder.
• Long-term effects: The real impact of internal communication is often seen over time. This makes it hard to connect your communication efforts and short-term outcomes directly.
• Multiple channels: Modern tech companies use numerous communication tools (email, chat apps, intranet platforms, project management tools, etc.), which makes it challenging to track the effectiveness of each one.

The solution:

• Set clear objectives: Define clear, specific, and measurable goals like “to increase participation in feedback surveys by 20%”. Such an objective makes it easier to track whether your internal communication efforts are having a positive impact.
• Leverage analytics tools: Many communication platforms offer built-in analytics. Use these tools to measure open rates, message reach, and employee engagement.
• Identify trends and correlations: Analyze the trends before and after implementing specific internal communication strategies to see if there’s a correlation between them and any positive business outcomes.

Challenge #2: Ensuring engagement across different generations within the workforce

The current workforce consists of multiple generations—mostly Millennials and Gen Z, who comprise over 50% of the workforce. Each generation has its own communication preferences, making creating an internal communication strategy that works for everyone a significant challenge.

The solution:

• Provide training and support: Offer training sessions to help employees of all ages become comfortable with new tools and technologies. Make sure tech support is available to promptly assist with any tech-related issues.
• Get employee feedback: Regularly ask employees for feedback on your communication methods and adjust strategies based on their preferences. This ensures your approach remains effective and inclusive to all generations.
• Offer multiple communication channels: Provide a variety of tools and methods (e.g., emails, instant messaging, in-person meetings, and virtual meetings) to accommodate different preferences.

Challenge #3: Maintaining engagement in hybrid teams and frontline workers

Maintaining a cohesive company culture and ensuring consistent communication when teams are often dispersed or on the move can be a struggle. 59% of C-level leaders admit that one of their biggest challenges has been to evolve their internal communication strategy for hybrid teams. 

The solution:

• Leverage digital tools: Use digital team management platforms like Slack or Microsoft Teams to ensure hybrid and frontline workers are always in the loop, despite their location or schedule. 
• Create a great onboarding process: The onboarding process is critical to integrating new employees into the company’s culture. Virtual orientation sessions or “buddy systems” will help new hybrid hires feel supported from the beginning.
• Host digital social events: Organize virtual team-building activities and events to foster a sense of community and belonging, regardless of where employees are located. 

Challenge #4: Insufficient financial resources

25% of internal comms experts shared that the lack of financial resources is one of their barriers to success. These limited budgets restrict organizations’ ability to invest in advanced communication tools or well-trained staff. 

The solution:

• Leverage cost-effective solutions: Take advantage of open-source software and free or low-cost alternatives to manage internal communication without straining your budget. 
• Prioritize clear communication: While advanced platforms are helpful, creating clear communication policies can go a long way in improving internal communications. For instance, clearly outline how frequently teams should meet or how different forms of information should be shared.
• Outsource your communication needs: Invest in part-time and freelance communication professionals to get the expertise without the long-term financial commitment of full-time hires. 

Challenge #5: Emerging silos

When teams are small, communication flows freely. However, as the organization grows and the teams expand, communication silos emerge. For instance, you may find that your sales team is unaware of upcoming product developments.

The solution:

• Cross-departmental meetings: Hold regular meetings between key teams to discuss each other’s progress, challenges, and upcoming projects. This helps break down barriers, leading to a more cohesive company culture.
• Centralize information: Develop a centralized hub for important company information, like an intranet or knowledge base, where employees can easily access and share information.

Challenge #6: Implementation fears

Adopting new tech is intimidating for most organizations and their teams. These fears often stem from concerns about the cost and effort required to train employees, the complexity of integrating new systems, and potential downtime.

The solution:

• Prioritize seamless integration: Choose tools or platforms that integrate seamlessly with the other software you use internally. For instance, our integration feature allows communication experts to integrate their CRM systems, team collaboration tools, and email distribution lists directly with Axios HQ. 
• Provide training: Offer comprehensive training programs and ongoing support to ensure employees have a smooth transition, reducing downtime.  
• Choose user-friendly solutions: Intuitive and user-friendly communication tools have a shorter learning curve, which means minimal employee resistance.

Challenge #7: Ownership of comms in the company

Small or growing tech companies focus heavily on product development, sales, or customer service, leaving internal communication as more of an afterthought. Without a designated person or team, it becomes unclear who should lead internal communication efforts. This leads to fragmented communication within different departments.

The solution:

• Create a task force: Establish a cross-departmental communication committee to manage internal communication until you have an official expert.
• Define roles: Even without a dedicated comms head, you can reduce confusion by establishing clear responsibilities for various tasks. For example, HR can manage employee updates while the leadership team oversees key company announcements.

Challenge #8: Tool fatigue

As your company grows, you will invest in more tools for different functions. Unfortunately, this can lead to tool fatigue, where employees feel overwhelmed by the number of platforms they have to use. 

More than 70% of employees feel they are missing out on company news and information because they don't have time to keep up with all the information.

The solution:

• Merge tools where necessary: Assess all the tools used and identify overlaps. For example, choose one if you are using both Slack and Teams. Also, look for all-in-one solutions that cover multiple aspects of communication. 

For instance, Axios HQ provides tools to plan, write, design, and send effective internal communications.

• Provide clear guidelines: Set clear guidelines on when to use each tool and for what purpose, ensuring employees know where to go for specific types of communication.
• Review your tools: Regularly review the company's tools to ensure they're still serving their purpose. Discard outdated platforms that no longer provide value.

The bottom line

Effective internal communication is crucial for the long-term success of software and high-growth tech companies. From bridging generational gaps to addressing tool fatigue, tackling these fundamental challenges proactively will lead to better engagement, collaboration, and overall productivity. 

Go deeper: Discover the best channels for effective internal communication