Clear Communication in a Fintech world: The Linchpin of Successful Employee Engagement
As many would agree, clear communication is
the linchpin of successful employee engagement, acting as a catalyst for a harmonious
and productive workplace. In a FinTech
company, clear communication is the bedrock of successful employee engagement. Companies
in today’s world have adopted to contemporary methods with their employees and
most use a ‘Partnership Approach’ as
their Employee Relations Policy.
A partnership approach makes way for precise articulation of goals, updates on industry changes, and transparent channels for feedback ensure that employees are well-informed and aligned. This clarity fosters a sense of purpose, boosting morale and commitment. Additionally, in the rapidly evolving fintech landscape, clear communication is essential for navigating complexities, enabling employees to adapt and contribute effectively to the company's growth.
In the dynamic
realm of fintech, consistency in communication is paramount. Fluctuating market
conditions, regulatory updates, and technological shifts demand a steady flow
of information. Consistent communication ensures that employees stay abreast of
industry changes, fostering adaptability and informed decision-making. It
cultivates a shared understanding of company objectives, promoting unity and a
collaborative culture. Moreover, in a sector where precision is key, regular
and consistent communication reduces the risk of misunderstandings, contributing
to a resilient and agile fintech ecosystem.
Good employee
communication enables employees to stay connected to their workplace,
understand their organisation’s purpose and strategy, identify with its values,
and develop a sense of belonging by understanding how they contribute to its
wider purpose. Beyond this, effective internal communication can influence a
variety of employee and organisational outcomes such as; work engagement
(Vercic & Men, 2023), trust (Men, et al., 2020), organisational reputation
(Men, 2014b), employee advocacy (Thelen, 2019) employee retention (Kang &
Sung, 2017), culture (Men & Yue, 2019) and performance (Jiménez-Castillo,
2016).
Communication is the lifeblood that sustains a healthy and productive environment. When it comes to employee engagement, the quality of communication between employers and employees plays a pivotal role. This article will therefore explore the pros and cons of communication in a fintech company.
Pros of Clear Communication in a Fintech Company:
In summary, while clear communication is generally advantageous in a FinTech company, it requires a delicate balance to avoid potential drawbacks. The pros emphasize precision, adaptability, collaboration, and trust-building, while the cons highlight challenges such as information overload, security concerns, legal complexities, resistance to change, and competitive risks that need careful consideration in the communication strategy.
I firmly believe that within the fast-paced and dynamic environment of the fintech world effective communication stands as a non-negotiable cornerstone of successful employee engagement. Emerging research on employee communication responsibility suggests that having an open communication climate, immediate supervisor communication, highlighting importance of the communication and management-employee communication all have a significant influence on employee behavior around communicating responsibly and effectively (Andersson, 2019).
Well, this is my take on this subject. I would love to hear your thoughts as well.
- Precision in Operations: Clear communication ensures that intricate financial and technological concepts are conveyed accurately, reducing the risk of misunderstandings and errors in operations.
- Adaptability to Market Changes: In the volatile fintech landscape, clear communication keeps employees informed about market shifts and regulatory updates, enabling the company to adapt swiftly to changing conditions.
- Alignment with Technological Innovations: Effective communication ensures that all team members are on the same page regarding technological advancements, fostering a culture of innovation and continuous learning.
- Enhanced Collaboration: Clear communication facilitates collaboration among cross-functional teams, encouraging the exchange of ideas and expertise critical for developing cutting-edge fintech solutions. Carefully planned, strategic communications are critical for employee sense-making and to reduce the ambiguity and uncertainty throughout the organisation and between management and workers (Frandsen & Johasen, 2011). Evidence suggests that effective crisis management communication contributes to positive employee outcomes (Kim, 2018).
- Information Overload: In a fast-paced industry, there is a risk of overwhelming employees with too much information, leading to information overload and potential disengagement.
- Security Concerns: Clear communication about technological advancements may inadvertently reveal sensitive information, posing security risks if not managed carefully.
- Legal and Compliance Challenges: Fintech companies must navigate complex regulatory landscapes. Clear communication may inadvertently lead to non-compliance if not handled with precision, resulting in legal challenges.
- Resistance to Change: Transparent communication about changes in technology or processes may face resistance from employees who are comfortable with existing systems, requiring careful change management strategies.
- Competitive Risks: Excessive transparency can expose strategic plans to competitors, posing a risk in the highly competitive fintech market where staying ahead is critical.
In summary, while clear communication is generally advantageous in a FinTech company, it requires a delicate balance to avoid potential drawbacks. The pros emphasize precision, adaptability, collaboration, and trust-building, while the cons highlight challenges such as information overload, security concerns, legal complexities, resistance to change, and competitive risks that need careful consideration in the communication strategy.
I firmly believe that within the fast-paced and dynamic environment of the fintech world effective communication stands as a non-negotiable cornerstone of successful employee engagement. Emerging research on employee communication responsibility suggests that having an open communication climate, immediate supervisor communication, highlighting importance of the communication and management-employee communication all have a significant influence on employee behavior around communicating responsibly and effectively (Andersson, 2019).
Well, this is my take on this subject. I would love to hear your thoughts as well.
References:
- Andersson. R. (2019). Employee Communication Responsibility: Its Antecedents and Implications for Strategic Communication Management, International Journal of Strategic Communication, 13:1, pp. 60-75, DOI: 10.1080/1553118X.2018.1547731
- Frandsen, F., & Johansen, W. (2011). The study of internal crisis communication: Towards an integrative framework. Corporate Communications: An International Journal, 16, pp. 347–361.
- Jiménez-Castillo, D. (2016). Beyond mere information transfer: The importance of a relational approach to market-related internal communication. Journal of Public Relations Research, 28(5-6), pp. 268-281.
- Kang, M., & Sung, M. (2017). How symmetrical employee communication leads to employee engagement and positive employee communication behaviors: The mediation of employee-organization relationships. Journal of Communication Management, 21, pp. 82-102.
- Kim, Y. (2018). Communication behaviors for sensemaking and sensegiving in crisis situations: Strategic management approach for effective internal crisis communication. Journal of Communication Management, 22, pp. 451-475.
- Men, L. R. (2014b). Internal reputation management: Effects of authentic leadership and transparent communication. Corporate Reputation Review, 17, 254-272.
- Men, L. R., Yue, C. A., & Liu, Y. (2020). “Vision, passion, and care:” The impact of charismatic executive leadership communication on employee trust and support for organizational change. Public Relations Review, 46 (3)
- Men, L. R., & Yue, A. C. (2019). Creating a positive emotional culture: Effects of strategic internal communication and its impact on employee supportive behaviors. Public Relations Review, 45(3), 101764
- Thelen, P. D. (2019). Supervisor humor styles and employee advocacy: A serial mediation model. Public Relations Review, 45(2), pp. 307–318.
- Verčič, A. T., & Men, L. R. (2023). Redefining the link between internal communication and employee engagement. Public Relations Review, 49(1), 102279.
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ReplyDeleteAn actively involved workforce constitutes the impetus for pioneering innovations. Within the fintech sector, the ecosystem of employee engagement flourishes through collaborative efforts, empowerment initiatives, avenues for professional development, and an unwavering commitment to fostering diversity and inclusion. Through the cultivation of these fundamental elements, fintech enterprises have the potential to cultivate a vibrant and dynamic workforce. This, in turn, serves as a catalyst propelling the entire industry forward, leading to a redefinition of financial services tailored for the exigencies of the digital age.
ReplyDeleteFintech company is one that employs emerging technology to provide financial services. It is a fast-growing and diverse field that combines technology and finance to create innovative solutions for various sectors and customers. Good communication skills are highly valued in any workplace around the world. communications is important in building awareness, credibility, trust, and reputation for organizations.
ReplyDeleteDo you think a partnership approach would be practical in terms of the SL work force? Are most Managing directors onboard to participate in such an approach. They usually prefer to have a more autocratic approach.
ReplyDeleteYour opinion on the significance of communication in the fintech industry is, in general, very interesting. Taking into consideration the complexity of information overload could further refine the communication plan in order to achieve optimal staff involvement.
ReplyDeleteRehana communication is very important. It is important both in Fintech and other industries. It should be clear and transparent. Due to the abundance of information availability it should be specific and relevant to the context.
ReplyDeleteAlso I would like to add something, the communication should always be a two way communication not one way. Then only it will be succeeded. This is applicable to all of the organizations no matter what industry they belong to.
ReplyDeleteA nuanced approach is needed even though clear communication is an unavoidable cornerstone of successful employee engagement in the fintech industry. The advantages stress accuracy, flexibility, teamwork, and establishing trust, while the disadvantages draw attention to difficulties that call for careful thought in the communication plan. An effective communication plan that balances these advantages and disadvantages is necessary to create a happy and stimulating work atmosphere in the fast-paced fintech sector. In this ever-changing industry, effective communication is still a critical factor in shaping employee behavior and engagement. I'm grateful for your insights and would be interested in hearing what you think about this viewpoint.
ReplyDeletewell written Rehana! This emphasizes how important it is to have open lines of communication when trying to build successful employee engagement in the fintech industry. It proposes investigating the ways in which successful communication is essential to the success of organizations in this quickly changing sector.
ReplyDeleteIn your context, the fact I emphasize for having clear communication in the organization is due to handling sensitive data. The organization is legally bound to protect clients data with high level of confidentiality. It has a high risk.
ReplyDelete