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SKILLS GAPS & BUSINESS PERFORMANCE

Workforce skills and business performance

Communication skills gaps affect productivity, collaboration and business performance, and how organizations can support workforce development.

Two mens
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Why communication capability matters

Communication supports the day-to-day activities that keep organizations moving forward. Employees use communication skills to participate in meetings, interpret instructions, solve problems and interact with customers and stakeholders.

When communication is effective, information moves efficiently across teams and employees can focus on completing work. When communication challenges arise, the effects often appear as operational issues rather than communication issues.

Organizations may experience:

  • Delayed projects and slower execution
  • Misunderstandings that create rework
  • Inefficient knowledge sharing
  • Inconsistent communication across teams
  • Additional time spent clarifying information

Communication is often viewed as a soft skill, yet many organizations increasingly recognize it as a business-critical competency. Communication capability supports productivity, collaboration and business performance while helping employees work effectively across workplace environments.

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How communication capability supports business performance

 

Communication influences more than individual interactions. It affects how effectively employees work together to achieve business objectives.

When communication capabilities do not align with workplace demands, organizations may experience communication skills gaps that affect how work gets done. These gaps can influence productivity, collaboration and execution across teams and functions.

Productivity

Employees spend a significant portion of their workday reading information, participating in discussions and collaborating with colleagues. When communication is clear, work can progress more efficiently. When communication gaps exist, additional time may be spent clarifying expectations, correcting misunderstandings or revisiting completed work.

Collaboration

Effective collaboration depends on a shared understanding of goals, responsibilities and next steps. Communication helps teams align priorities, share knowledge and coordinate activities. When information is not clearly understood or communicated, collaboration becomes more difficult and may slow decision-making.

Execution

Organizations rely on employees to translate plans and priorities into action. Communication capability helps employees understand requirements, interpret information and carry out responsibilities consistently. Strong execution depends not only on technical expertise, but also on the ability to communicate effectively within workplace environments.

 

What the research tells us

Employers increasingly recognize communication as a business capability
 

Findings from the TOEIC® Global English Skills Report suggest that employers are placing greater importance on workplace communication skills and English proficiency.

  • 90% of employers say English proficiency is critical to organizational success.
  • 92% say English proficiency is more important today than it was five years ago.
  • 81% say AI is increasing the need for workplace English proficiency.

Organizations increasingly view communication capability as more than an individual skill, recognizing its role in supporting collaboration, productivity and organizational effectiveness.

Explore key findings from the Global English Skills Report
GESR

Understanding where communication gaps impact business results

 

Organizations often recognize the symptoms of communication challenges but may have difficulty identifying the underlying cause.

A communication skills gap exists when workforce communication capabilities do not align with workplace requirements. Communication requirements differ across roles, teams and business functions. Understanding those differences helps organizations identify which communication capabilities are most critical to effective job performance and where development efforts may have the greatest impact.

Identifying these gaps helps organizations better understand where communication challenges may be affecting performance and where development efforts may have the greatest impact.

A structured approach begins by examining workplace communication requirements and comparing them with current employee capabilities. Consistent measurement helps create visibility into workforce communication capabilities, providing a foundation for development planning and performance improvement.

This helps organizations:

  • Identify workforce strengths and development opportunities
  • Understand where communication challenges may be affecting performance
  • Prioritize development investments
  • Reduce the business cost of miscommunication
  • Measure progress over time

By connecting communication requirements to workforce capabilities, organizations can make more targeted workforce development decisions rather than relying on broad, one-size-fits-all training approaches.

 

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Strengthen communication capability across your workforce

Communication skills influence how employees collaborate, share information and execute work. Understanding current workforce capabilities helps organizations identify development priorities, align learning investments with business needs and support stronger performance over time.

By identifying communication skills gaps and aligning development efforts with workplace requirements, organizations can strengthen workforce capability, support employee growth and improve business performance over time.

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Skill report