4 Types of Business Communication

1. Internal upward communication
Internal upward business communication is communication that comes from a subordinate to a manager or an individual up the organizational hierarchy. Every leader should enable information to flow upwards in order to have a true understanding of the company’s operations.

Internal upward communications usually include surveys, feedback, forms and reports that employees deliver to their managers or team leaders.

For example, a marketing report may include statistics such as total website visitors, social media engagement or total leads generated.

2. Internal downward communication
Internal downward communication flows from a superior to one or more subordinates. This type of communication might be in the form of a letter, a memo or a verbal directive.

When communicating with employees, leaders should keep communication professional and clear. An example of this type of communication may include a memo regarding a new company operations procedure such as safety requirements and new regulations.

3. Internal lateral communication
Internal lateral business communication happens among employees in the workplace. Today, there are many different ways employees can communicate: chats, messaging, email, employees communication software solutions.

This type of communication can be within or among departments and it happens more regularly than other types of business communication. Moreover, frequent communication among employees plays a crucial role in employee engagement and productivity.

4. External communication
External business communication is any communication that happens with external parties such as customers, prospects, vendors or partners.

Unlike all the internal business communications types, external communications happen on a less regular basis.

Whether you like it or not, we live in a highly competitive world, and we don't all begin from the same starting line. Our skills, personality, education, efforts, and experience partly determine our place in the peloton. Those of us who haven't had a head start have to learn how to challenge themselves and bring out their best every day, just to be able to go the distance. In this constant pursuit of performance, managers can learn a lot from sports coaches. That’s why I'm not going to base my thoughts on the best selling leadership and management books, but rather on my readings from the literature and interviews of some of the greatest athletes and coaches in sports. Whoever said that “L’Equipe” (a French sports newspaper) couldn't be a source of inspiration?

As you think about the different types of employee recognition and how to manage recognition at your organization, consider the following questions:
Is there opportunity for any and every employee to share and receive appreciation?Is there opportunity for any and every employee to be recognized and rewarded for going above and beyond? Is there opportunity for any and every employee to be recognized and rewarded for contributing to company culture? Is there opportunity for managers to reward and recognize their direct reports, strengthening the manager-employee relationship? Is there opportunity for public shout-outs and recognition to remind all employees we have a culture of recognition? Are there structures, processes, and tools that support all of the above to ensure recognition is constant?

It’s only when you treat employee recognition as a foundational People strategy that you’ll unlock its true potential, creating a better work environment for your people and achieving greater business results.