The Investment Gap: Why Internal Communications Deserve More Strategic Budget and Leadership Focus
Introduction: The Under‑Investment Problem
When the Chartered Institute of Public Relations (CIPR) published new research in October 2025, one finding stood out: British organisations remain systematically under-funding their internal communications investment. According to the CIPR, “widespread under-investment in internal communications across UK organisations” remains a pressing reality (CIPR, 2025). This underlines a growing disconnect between how vital internal communication is to employee engagement, productivity and change success — and how little resource it often receives. In an era of hybrid working, regulatory pressure and digital evolution, internal communication has shifted from nice-to-have to indispensable. This article will examine: first, the data revealing the investment gap; second, why it really matters; third, the root causes of under‑investment; fourth, how communicators can reframe internal comms as strategic enablers; and finally, practical guidance to build a compelling investment case for leadership.
What the Data Tells Us: A National Communications Deficit
The CIPR’s 2025 research paints a sobering picture. While exact figures of organisational spend per employee were not published in full, the study emphasises that “a large majority of organisations still allocate little or no dedicated internal‑communications budget” (CIPR, 2025). Complementary data underscores this trend. The Institute of Internal Communication (IoIC) in partnership with Ipsos Karian & Box found that 74 % of UK employees say they receive “the right amount” of communication from their employer, yet more than a third (36 %) say they don’t hear enough about pay and benefits; and 31 % want more coverage of career development. For large organisations (10,000+ employees) the share who feel communication volume is “right” falls to 67 % (IoIC, 2025). Taken together, the data reveal two inter‑linked realities: internal communications is chronically under‑resourced; and employees’ expectations around topics and channels are evolving faster than investment is catching up.
Why It Matters: The Link Between Communication, Engagement and Performance
The strategic importance of internal communications is well established in academic and professional literature. As Dewhurst & FitzPatrick (2022) show in Successful Employee Communications, employees who feel well‑informed and connected are significantly more likely to participate in discretionary behaviours that drive organisational performance. In their 2023 work Internal Communication and Employee Engagement: A Case Study Approach, McCown et al. describe how communications aligned with organisational purpose, led by visible executives, strengthen culture and resilience during change. From a business perspective, the cost of poor internal communication is tangible: higher turnover, reduced productivity, slowed change programmes and greater risk exposure. Hence, internal communications should not be viewed solely as a “nice to have” or support function — rather, it is a leading indicator of cultural health, trust and organisational agility.
The Causes: Mis perceptions, Metrics and Misplaced Priorities
Why, then, does under-investment persist? Several inter-related reasons emerge:
- Historic mindset of communication as information only. Many senior leaders still view internal comms as simply a channel for announcements, rather than a strategic dialogue function. As Holtz (2004) noted in Corporate Conversations, internal communications often suffer from being seen as part of the “post-room” rather than the boardroom.
- Weak measurement and value articulation. Without robust analytics, it becomes difficult for communicators to demonstrate ROI or link comms investment to business outcomes. As the CIPR-Inside study noted, a large proportion of internal comms professionals still don’t have access to data that would inform their approach (CIPR, 2022)³.
- Budget competition and orphan function. Internal comms often sits between HR, marketing and IT — lacking a clear owner at board level and thereby missing out on investment priority.
- Channel clutter and digital fatigue. Organisations equipped with multiple platforms (intranet, chat, collaboration tools) may mistakenly believe volume equals value. However, when channel mix is fragmented, employee signal drops and leadership begin to question investment returns.
This creates a vicious cycle: low investment → low measurement → low perceived value → continued under-investment.
The Strategic Case for Investment: Communicators as Business Enablers
To shift perception, internal communication teams must recast themselves as business enablers. One practical model is the ARROW framework: Awareness → Relevance → Reaction → Outcomes → Wins.
- Awareness: Employees must know what matters and why.
- Relevance: Messages must connect to individual roles and contexts.
- Reaction: Organisations need mechanisms to assess understanding, sentiment and action.
- Outcomes: Communication must tie into measurable business metrics (retention, safety incidents, productivity).
- Wins: It is vital to feed back success so leadership recognise value and investment increases.
Communication professionals seeking practical templates for applying ARROW can explore NewZapp’s internal communications guides, which provide best-practice models and measurement tools for aligning communication to organisational outcomes.
When internal comms aligns with strategic outcomes it ceases to be a cost-centre — and becomes infrastructure for performance. Furthermore, sustainability and compliance agendas increasingly depend on behaviour change, which in turn relies on effective internal communication. In the world of ESG reporting, communications are no longer optional.
Practical Solutions: Building a Compelling Business Case
To close the investment gap, internal communication leaders must learn to “speak finance” — articulating value in terms that resonate with executives. Dewhurst and FitzPatrick (2022) recommend presenting evidence in three dimensions: outcomes, efficiency, and risk.
1. Audit the current state.
Before requesting additional budget, establish a data baseline. Use surveys, focus groups, and analytics to quantify reach and impact. Tools such as employee Net Promoter Scores (eNPS), readership heatmaps, or sentiment tracking via NewZapp can highlight gaps between leadership intent and employee experience.
2. Align to strategic objectives.
Frame your communication goals as enablers of organisational KPIs — for instance, “Reduce staff turnover by improving understanding of career pathways” or “Increase safety compliance through targeted communication.” This linkage turns communication from output (emails sent) to outcome (behaviour changed).
3. Demonstrate ROI and cost avoidance.
Estimate the cost of disengagement: Gallup data indicates disengaged employees cost UK organisations 18 % of annual salary per employee in lost productivity (Gallup, 2023)⁴. Conversely, engaged teams deliver 23 % higher profitability. Translating communication improvements into monetary equivalents makes a powerful case.
4. Present risk mitigation.
Show how under-communication heightens risk — for example, missed compliance updates, misinterpreted policy changes, or reputational exposure through misinformation. Aligning with ISO 27001 and WCAG 2.1 AA accessibility standards – as demonstrated through NewZapp’s secure, accessible internal communications solutions – reassures boards that communication systems are both secure and inclusive (Tunley Environmental, 2024)⁵
5. Leverage partnerships across Finance, HR and IT.
When communication is positioned as infrastructure — akin to CRM or ERP systems — rather than discretionary spend, investment conversations shift from optional to essential.
This structured approach not only builds credibility but demonstrates that internal communication is integral to organisational performance, not a peripheral service.
For further insight into ROI modelling and board-ready evidence packs, download one of NewZapp’s reports and guides focused on building the business case for internal communications investment.
Most breaches now start outside your walls
In 2025, a striking pattern has emerged in cybersecurity: many of the most damaging security breaches are not the result of direct attacks on organisations themselves but rather through their third-party vendors. Recent incidents affecting Marks & Spencer, Workday and Harrods, have underscored the dangers of supply chain vulnerabilities. For communications leaders, these breaches provide a sobering reminder that the integrity of employee and customer communications is only as strong as the weakest link in the vendor ecosystem (FortifyData, 2025).
Leadership and Culture: Securing Senior Buy-In
Sustained investment depends on leadership advocacy. Smythe (2013) argued that “employee engagement is not a programme but a philosophy of shared power and transparency” (p. 197). The communicator’s role is therefore to coach leaders in visible, authentic communication — helping them connect strategic intent to human impact.
Practical actions include:
- Running short “leadership comms labs” where executives practise storytelling and listening.
- Providing managers with curated “toolkits” for team briefings that link business performance to people outcomes.
- Reporting upwards with evidence-based dashboards showing the correlation between leader visibility and engagement metrics.
As leaders witness the data-driven link between communication quality and performance, they become advocates for continued funding.
Towards a Sustainable Internal Communications Strategy
Investment in internal communication is no longer only a human-capital issue — it is also a sustainability imperative.
Independent analysis by Tunley Environmental (2024) found that digital employee communications can cut lifecycle emissions by up to 92 % compared to printed newsletters, assuming UK energy-mix factors⁵. For organisations reporting under the Streamlined Energy and Carbon Reporting (SECR) framework, such reductions support tangible ESG evidence.
Sustainability also extends to inclusion. As the IABC Handbook of Organisational Communication (Gillis, 2006) emphasises, accessible, transparent communication strengthens trust and diversity by ensuring that “all employees, regardless of location or ability, can engage in organisational dialogue” (p. 205).
Adopting accessible platforms (WCAG 2.1 AA), using plain-language design, and segmenting messaging to reach remote or frontline staff are now basic professional standards. Investment in these areas supports not only compliance but equity and engagement.
Ultimately, a sustainable internal comms strategy is both environmentally and socially responsible — demonstrating to stakeholders that the organisation values people and planet alongside profit. Read how this translates into measurable carbon savings in NewZapp’s Environmental Report
Conclusion: The Cost of Silence
The evidence is overwhelming: chronic under-investment in internal communications erodes engagement, culture and performance.
As the CIPR (2025) report warns, “The under-investment problem is now systemic; without intervention, organisations risk long-term cultural and reputational decline.”¹
Internal communication is infrastructure — as critical as cyber-security, logistics or finance systems. It delivers measurable returns in productivity, retention and resilience.
For leaders, the call to action is clear:
- Audit your current communication effectiveness.
- Align it with strategic outcomes.
- Advocate for investment using evidence and risk metrics.
To begin building your own evidence-based strategy, access free internal communications resources and templates from NewZapp – including audit checklists, benchmarking tools and messaging frameworks. For communicators, the challenge is to translate empathy into evidence — proving that good communication is not a cost but a multiplier of organisational value.
In 2025, clarity is currency — and communication is the investment that pays it forward.
For procurement and IT leaders evaluating software or compliance, see NewZapp’s frequently asked questions covering data security, hosting and accessibility standards.
Speak with us and find out more
FAQ: Internal Communications Investment
Q1. What is the typical internal communications budget in UK organisations?
According to CIPR (2025)¹, most UK employers allocate less than 1 % of total payroll to internal communications, and fewer than 20 % maintain a dedicated IC budget.
Q2. What ROI can be demonstrated?
Gallup (2023)⁴ reports that engaged employees deliver 23 % higher profitability and 18 % higher productivity than disengaged peers.
Q3. Should investment prioritise technology or content?
Both are interdependent. Technology enables segmentation, accessibility and analytics; content builds trust, meaning and relevance.
Q4. How often should internal communications strategies be reviewed?
Best practice (Dewhurst & FitzPatrick, 2022) recommends annual review with quarterly measurement dashboards tied to business KPIs.
Q5. Where should a communicator begin?
Start with an internal communication audit, benchmark performance, and build a phased investment roadmap focused on outcomes such as engagement, retention and safety.
Reference
Albrecht, S. L. (2010) Handbook of Employee Engagement: Perspectives, Issues, Research and Practice. Cheltenham: Edward Elgar Publishing.
Chartered Institute of Public Relations (CIPR). (2022, September 19). Line managers “set up to fail” through lack of communications preparedness. Available at: https://newsroom.cipr.co.uk/line-managers-set-up-to-fail-through-lack-of-communications-preparedness/ (Accessed 24 October 2025).
Chartered Institute of Public Relations (CIPR). (2025, October 21). New CIPR research exposes widespread under-investment in internal communications across UK organisations. Available at: https://newsroom.cipr.co.uk/new-cipr-research-exposes-widespread-under-investment-in-internal-communications-across-uk-organisations/ (Accessed 24 October 2025).
Dewhurst, S. and FitzPatrick, L. (2022) Successful Employee Communications: A Practitioner’s Guide to Tools, Models and Best Practice for Internal Communication. 2nd edn. London: Kogan Page.
Gillis, T. (ed.) (2006) The IABC Handbook of Organisational Communication: A Guide to Internal Communication, Public Relations, Marketing and Leadership. San Francisco: Jossey-Bass.
Gallup Inc. (2023) State of the Global Workplace: 2023 Report. Available at: https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx (Accessed 24 October 2025).
Holtz, S. (2004) Corporate Conversations: A Guide to Crafting Effective and Appropriate Internal Communications. New York: AMACOM.
Institute of Internal Communication (IoIC). (2025, September 9). New IC Index 2025 report explores workplace communication channels and topic preferences. Available at: https://www.ioic.org.uk/resource/new-ic-index-2025-report-explores-workplace-communication-channels-and-topic-preferences.html (Accessed 24 October 2025).
McCown, N., Men, L. R., Jiang, H. and Shen, H. (eds.) (2023) Internal Communication and Employee Engagement: A Case Study Approach. Abingdon: Routledge.
Smythe, J. (2013) The Velvet Revolution at Work: The Rise of Employee Engagement, the Fall of Command and Control. Abingdon: Routledge.
Tunley Environmental. (2024) Carbon Footprint Assessment of NewZapp Communications Platform (Revision B). Tunley Environmental Ltd. Available at: https://newzapp.co.uk/environmental-report (Accessed 24 October 2025).