#United States #Redwood City #Simpplr #Intranet #Internal Comms

The Intranet Paradox: Organizations Struggle with Internal Communication

In the digital age, it seems counterintuitive that organizations are still grappling with effective internal communications. According to Simpplr's 2025 State of Internal Communications and Intranet Technology Report, the vast majority of organizations claim to have an intranet—91% to be exact—but many are not leveraging these platforms effectively to foster better connectivity and productivity among their employees.

The report, a comprehensive survey involving nearly 800 professionals across internal communications, human resources, and IT, reveals profound challenges that organizations face even with the implementation of an internal communication platform. While systems are theoretically in place, they often fail to meet the actual needs of employees. Workers often report frustrations with finding the information they require, leading to unnecessary clutter and noise that hinders rather than helps effective communication strategies.

Dhiraj Sharma, CEO and Founder of Simpplr, emphasizes that internal communications have historically been perceived as a “soft skill” rather than a vital business driver. However, the findings in this report challenge that perception. The data clearly indicates that organizations that invest in clear and effective internal communications ultimately see increased engagement and connection among employees, which translates to significant business outcomes:

• - 21% higher employee engagement: Organizations with modern intranet solutions report an engagement rate of 83%, compared to just 69% in those without.
• - 15% stronger productivity impact: The impact on productivity is markedly higher in organizations with well-designed systems—78% versus 63% in others.
• - 13% greater revenue impact: Revenue also sees a boost, with 67% of organizations that utilize advanced intranet technology experiencing positive financial outcomes, compared to just 54% of others.

However, as the report uncovers, the real issue lies in a prevalent false sense of progress. Many companies mistakenly believe their internal communication problems have been addressed merely by adopting a platform. In reality, numerous organizations are reliant on outdated technology and fragmented tools that lead to inefficiency and user frustration. Carolyn Clark, VP of Comms and EX Strategy at Simpplr, explains this phenomenon, stating that the chaos many workers experience isn't due to their choices but rather the inheritance of disjointed systems that have become cumbersome to navigate over time.

The study further outlines critical areas where organizations have fallen short—and where modern intranets can drive significant change. Key findings include:

• - Strategic value of internal communications: A startling 89% of leaders recognize the influence of internal communication on engagement, 87% on productivity, 85% on culture, 84% on talent retention, and 81% on revenue generation.
• - Real connections from modern platforms: Firms using well-designed internal communication tools reported enhanced outcomes not just in productivity (84% to 67%), but also in their employees’ belief in the company's mission (78% to 60%) and connection with coworkers (75% to 58%). This marks a clear distinction between operational and emotional engagement levels among employees.
• - Strong demand for technology upgrades: While nearly all organizations possess some form of intranet, over half are relying on outdated systems. Twenty-three percent of surveyed professionals expressed a desire to transition to an all-encompassing platform if possible, indicating a widespread acknowledgment of the need for improvements in their current setups.

The costs of inaction are substantial, leading to loss of talent, heightened inefficiency, and stunted business performance overall. Purposeful platforms, like those offered by Simpplr, are increasingly becoming recognized as the new standard for unifying engagement and services into a cohesive, AI-powered solution.

In conclusion, the hallmark question organizations must confront isn't a matter of whether they have an intranet, but whether it genuinely serves their employees' needs. By taking a proactive approach to modernizing internal communication infrastructure, companies can unlock the true potential of their workforce, leading to heightened engagement and improved business results.

For those interested in gaining deeper insights, the full 2025 State of Internal Communications and Intranet Technology Report is available for download. This document showcases not only the survey methodology but also the extensive data that can help organizations evaluate and enhance their internal communication strategies.

For more details about Simpplr and how it can facilitate a better employee experience, visit simpplr.com.