US companies spend $41 billion on internal communication annually. That’s ₹3.44 lakh crore rupee. They call this spend employee experience. Sounds crazy? Here’s why it isn’t!
What is Internal Communication?
Does it mean all the chatter that happens inside the four walls of our offices could be formal or informal? Yes, to an extent, it is, but it has a bigger purpose.
Different online sources define Internal Communications, or Comms. Firstup defines it as a continuous process that keeps employees informed through distinct channels, verbal, written and digital.
Wikipedia calls it a department responsible for communication within a company. Most importantly, it emphasises that internal communication is a two-way process between staff and leadership. Something that rarely takes place in Indian companies.
While Salesforce says it is ‘Communicating with your team isn’t just protocol—it’s an essential organisational element that employees expect.’
Internal Communication is crucial, as it can make or break a company
As someone who has led communications and editorial teams across startups and a Fortune 500 company, I’ve seen firsthand how vital internal communications are. They can make or mar the fortunes of a business because clear communication provides both clarity and purpose.
Let me explain, with examples.
Startup: chaos, no direction, no survival
I oversaw a communications function at an Indian startup. Within a week of joining, I realised there was no internal communication mechanism. No wonder clients were clueless about the deliverables. The CEO thought she knew everything, and staff insights never mattered. No one knew the big picture; everyone was disconnected, and the organisation had no purpose. Today, the firm is defunct.
Fortune 500: clarity, connection, and longevity
On the contrary, when I was at a Fortune 500, internal communication was an integral part. Leadership Town halls, monthly team meetings, employee one-on-ones, and informal conversations were the norm. Employees understood the big picture and were more connected to the organisational purpose. The company is still the most admired brand in its domain.
Internal Communication and Workplace Culture
The way staff receive information about change, policies, and procedures speaks volumes about company culture. Firms that cultivate and promote a healthy work culture are also interested in informing their biggest stakeholders, the staff. On the other hand, clueless organisations ignore internal communication and information is hardly shared, leading to rumours.
When I began my career in the industry, I joined one of India’s largest conglomerates. I had no idea what company culture was, as the only communication I had, formal or informal, was with my boss and colleagues.
It took me 14 years to realise what company culture truly is when I joined a Fortune 500 company. Leadership communicated through town halls, and I connected with my reports via monthly meetings, 1-on-1s, and informal conversations.
The organisation had an intranet (internal Facebook). Employees found all the company information on it. Policies and procedures were readily available. Staff could post, like, share and follow the leaders. It was an online community of 40,000 plus individuals spread across the world. But a single platform gave a sense of belonging, fostering an exceptional company culture.
So, good communication = strong culture, while weak communication = poor culture.
Internal Communication during change
Change is something that we resist as humans. Now, if this change is in an organisation, it makes staff more jittery. It is natural to feel anxious about what’s happening.
During my time at an MNC, I faced similar jolts. After a big acquisition by the company, I suddenly realised that my peers and I were out of the communication loop. We were part of the APAC and Global leadership, and this change was unusual.
But such incidents can be controlled. When internal communication is strong, staff feel at ease even during transitions. Sharing details on who will be impacted and what’s next pacifies sentiments. Moreover, pointing towards support and creating a caring atmosphere helps adapt to change. Internal communications play a key role here by fostering openness and transparency.
Internal Communication in 2025
The latest trends suggest that Internal Communication in 2025 is customised and data-driven. Practitioners in this space must leverage data-driven insights to deliver personalised communications and ensure employees have relevant, timely information tailored to their roles or choices.
This shows that the internal communication space is evolving to meet the needs of the staff. This is especially true in a diverse organisation that has offices across the world, with hybrid and remote roles. Data plays a critical role in understanding employee behaviour and preferences. Thus, it’s no longer a top-down approach but rather a bottom-up approach backed by data.
The Bottom Line
To sum it up, Internal communication (IC) isn’t jargon; it’s the lifeline of company culture. Strong IC builds trust and purpose. Weak IC breeds confusion and disengagement. In 2025, with data-driven and bottom-up approaches, IC isn’t a cost; it’s an investment in people, culture, and long-term success for companies. No wonder U.S. companies are leading the charge, investing billions of dollars into it.
Final CTA (Call to Action): How strong is internal communication in your company? Do you think Indian firms will start investing more in it?

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