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An organization’s success hugely relies on the leadership’s ability to rally the team behind a common vision. 72% of employees admit that how well they understand organizational goals impacts how engaged they are. But 79% of employees say that how well they understand leaders’ goals depends on the quality of their communication.
- Why it matters: How well you communicate as a leader determines how well employees understand business goals and priorities, and how engaged they become. Sadly, too many leaders fall short when it comes to communicating clearly.
While 80% of leaders think their communications are clear and engaging, only 50% of employees agree, according to the 2025 State of Internal Communications. Moreover, 80% of leaders believe their communications are helpful and relevant, but only 53% of employees agree.
Importance of effective leadership communication
Clear and inspiring communication from leadership boosts employee engagement and productivity, and it also directly impacts business performance because it's how employees understand big company goals.
Business leaders admit a lack of clear communication has led to misalignment, and this has:
- Lost them customers.
- Cost them revenue.
- Affected team morale.
- Resulted in high employee turnover.
Effective communication from leaders unlocks better alignment, increased employee engagement, and higher productivity levels. In fact, 67% of employees say they would go above and beyond in their duties if they felt engaged and valued.
7 top leadership communication skills
“Communication can be the most efficient, muscular use of your time as a leader,” Axios Co-founder Mike Allen says. “If people aren’t on the same page, they’re not going to do the right work.”
Here is what you need to communicate in a clear, engaging manner.
1. Brevity
70% of employees prefer shorter communications, according to a study by Axios and Gallup.
- Yes, and: Almost 50% of leaders admit that learning how to write concise, engaging communications is one of their toughest challenges.
State of play: Employees are drowning in information. The average professional receives around 121 emails per day, according to the Harvard Business Review. Add up notifications from instant messaging apps like Slack and phone calls, and it's crystal clear why employees are overwhelmed.
Cut through the noise and create memorable communications. Do that with concise communications that respect employees’ time with brief messages that still share all the context your teams need to do their job. How it works...
- Analyze your topic: What are you trying to communicate, and is it essential to your audience? Is it timely?
- Determine the goal: Are you trying to educate your audience, inform them, or spark an action?
- Identify the one big thing: What’s the one thing you’d want your audience to do or remember after receiving your communication? This is the most important thing in your comms and should always come first.
- Filter out details a smart reader already knows: Don't include information they already have — it will only slow them down and distract from the most critical information.
The Smart Brevity communication formula was built to meet the growing need for brevity. Our research showed that most folks are overwhelmed, underinformed, tight on time, and frustrated with long, impenetrable communications. So, Axios scientists used brain science and data to build the Smart Brevity communication methodology, which formats communications to make them clear, engaging, and memorable.
2. Active listening
Effective leaders know when it's time to sit still and listen.
"We have no idea what's truly going on in people's lives. When they open up and share, if you really listen, I assure you it will help you be a better leader because it'll build trust with your team," says Bob Jimenez, former SVP of Corporate Affairs for Cox Enterprises.
The irony is that the majority of leaders still do 80% of the talking, even when they’re called into meetings where employees want to share their input. It’s time to flip the script.
- Eliminate distractions and pay undivided attention to employees when they speak.
- Don't interrupt your employees when they’re talking, even when you want to agree. Let them finish their idea, and pause to reflect on what they’ve just said.
- Paraphrase and reflect what you’ve just heard. “Here is what I’m hearing….right?”
- Ask open-ended questions to collect more context
- Close the loop by acting on the insights shared and doing follow-ups.
3. Transparency
Transparency builds trust and keeps employees aligned with company goals. It’s easy for leaders to be transparent when the company is scaling fast and investors are all-in. But, staying transparent when things are not going well is even more important.
- Effective leadership means communicating clearly and with empathy when there is difficult news to share or when you need to discuss sticky subjects like politics.
Communicating in a timely manner is also critical. When you only communicate to clear up rumors or put out fires, you send a signal that transparency is an afterthought, and this erodes trust.
Be proactive and share both positive and negative news in time. Give employees clarity and context around key business decisions by explaining the “why” and not just the “what” — this builds a healthy culture of trust and accountability across the entire organization.
4. Authenticity
An authentic leader understands and embraces their core values and ethical stance. They are open and transparent and make sure that their words and deeds are in alignment at all times.
Authenticity from leadership encourages the rest of the team to be authentic too. Employees feel safe and open to approach and communicate with management. This boosts engagement and cultivates employee loyalty.
5. Clarity
Leaders greatly overestimate the clarity of their communications.
- 80% of leaders think their updates are clear and engaging, only 50% of employees agree.
Organizations pay a steep price for vague and ineffective communications.
- 30+ work days are lost per employee per year as they chase down additional information and clarifying the context they need to do their job.
- $3,640 is lost per employee per year at a minimum.
Leaders have to choose their words carefully and communicate with power and clarity to inspire confidence and boost team performance.
The Axios HQ communication platform empowers execs and communication leaders to communicate with clarity through Smart Brevity guidance and eye-catching anchors we call Axioms.
Smart Brevity cuts the fluff, and Axioms like “Why it matters,” “The big picture,” and “What’s next” boost clarity by making sure key points stand out immediately.
6. Empathy
27% of employees see their organizations as unempathetic, and these employees are 1.5 times more likely to look for other job opportunities in the next six months, according to a Business Solver report.
Empathetic leaders are not afraid of feeling and communicating their emotions. Not only that, but they can also pick up on the emotions and moods of others within their teams.
- Communicating with empathy, taking the time to understand other people’s emotions, and acknowledging those emotions creates a strong connection between leaders and their teams. It builds a psychologically safe workplace where employees have the freedom to feel. This strengthens team cohesion, boosts morale, and promotes inclusivity.
According to a 2023 report by Ernst & Young, empathetic leadership boosts:
- Efficiency by 88%.
- Job satisfaction by 87%.
- Creativity by 87%.
- Idea sharing by 86%.
- Company revenue by 83%.
Yes, but; 52% of employees reported that their company's efforts to be empathetic were dishonest. The lack of follow-through on the promises made by leadership is one of the reasons behind this.
The only way to show genuine empathy is by following through and acting on the insights and feedback you get from your team.
7. Storytelling
Storytelling transforms data and updates into memorable narratives that inspire action. According to a recent Forbes report, people only remember 5-10% of information when it’s communicated through statistics. Retention jumps to 65% to 70% when the same information is communicated through a story.
Leaders have to learn to:
- Identify and use relatable analogies to simplify complex ideas.
- Identify heroes and use them in your stories. Pro tip: Make the heroes your employees or customers.
- Build narrative arcs with a beginning, middle, and end.
- Share personal experiences to engage your team and build trust and relatability.
Communicate your company goals as journeys with challenges, heroes, and victories.
Storytelling becomes a superpower when you need to inspire your team and align them with your big vision, simplify complex ideas, and influence internal and external stakeholders.
- Just keep in mind that regular updates and operational instructions don't always require a story — simple and direct communication is best here.
The bottom line
Leaders are responsible for inspiring their team and rallying them behind the company’s strategic goals. But it’s impossible to do that unless you have the relevant leadership communication skills to help you communicate clearly, engage employees, and spark action.
Executives have to learn to communicate and invest in their managers to build a thriving workplace culture with effective communication practices.
Go deeper: Why senior leaders are losing time, talent, and customers in 2025.
