Opinion: 4 communication mistakes that cost time, money

Poor communication is a silent drain on productivity and profits. A 2023 report by Grammarly and The Harris Poll revealed it costs U.S. businesses an estimated $1.2 trillion annually. That averages out to $12,506 per employee, much of it from time wasted seeking clarification and redoing work.

Conversely, effective communication yields huge dividends. I once worked with a large manufacturing client whose top-performing team was led by a manager with a simple method: provide clear, timely and open communication. By focusing on cutting out misinterpretation, keeping people informed and fostering dialogue, she built a team with incredible productivity and morale – results the company wasn’t seeing anywhere else.

While technology can speed things up, it doesn’t solve the core need for accurate and meaningful exchange. Effective communication requires human intelligence, nuanced messaging and appropriate levels of interaction.

Here are four of the costliest communication errors and the solutions you can implement today.

1. Being vague. When supervisors give vague instructions without sufficient detail or context, they leave colleagues guessing. The result? Mistakes, rework and delays. A 2021 Society for Human Resource Management study found that 57% of employees cite unclear directions as the leading cause of ineffective work.

Consider this simple example: A supervisor says, “Get that report done quickly.” But which report? By when exactly? In what format? The instruction is a recipe for wasted time and unnecessary stress. Instead of causing confusion, provide clarity by answering the Five Ws: who, what, when, where and why. If the leader had used this framework, the instruction would have been crystal clear, leading to efficiency instead of guesswork.

2. Lacking clarity. A lack of clarity often stems from ambiguity or false assumptions, which can increase mistakes and project failures. A 2022 Forbes report noted that the negative effects can be substantial, from frustrating customers to harming an organization’s innovation, because poorly communicated instructions or ambiguous ideas typically get dismissed.

One manager’s unclear team instructions started negatively impacting his scores on his performance review. To correct it, I recommended he use the repeat-it-back technique: After giving instructions, ask the receiver to repeat back what they’ve understood in their own words. This simple step helped the manager see immediate improvement in his team’s results and fostered better communication in his employee one-on-ones. To ensure clarity, set progress checkpoints and monitor work before completion, intervening on issues as early as needed.

3. Assuming the message was received. One of the most common mistakes is assuming your message landed as intended. Studies consistently show that leaders significantly overrate their communication effectiveness, while their teams rate those same communications poorly.

I learned this lesson the hard way after buying a business. Despite knowing how important it is to be a great communicator – and giving communication workshops coast to coast – I still made too many assumptions. Early employee meetings revealed I had left people feeling uninformed and even frustrated.

It’s far better to over-communicate and verify understanding than to assume. Check in with your team regularly to ensure everyone is on the same page. Ask direct questions like, “What are your key takeaways from this?” or “What questions do you have for me?” and “Do you feel like you are adequately informed in a timely manner?”

4. Poor listening. Costly communication mistakes aren’t just about what the speaker says – they’re also about how well the receiver listens. In my audience polls, I’ve found that less than 10% of attendees have ever received formal listening skills training.

Even the most skilled communicator can’t overcome the problems created by poor listening. If a receiver is unsure of what’s being communicated, it’s their responsibility to seek clarification.

When communication suffers, so do employee relations, morale and productivity. But you don’t have to let unclear messages drain your time or resources. By fixing these common mistakes, you can build a more efficient, engaged and successful team. Your bottom line and your team will thank you.

Mark Holmes is a consultant, professional speaker and author of “Selling to ELON! Understand, Communicate and Sell to Unique Personality Types,” and he’s president of Springfield-based Consultant Board Inc. and SalesRevenueCoach.com. He can be reached at mark@salesrevenuecoach.com.