A majority of companies worldwide say they are becoming more knowledgeable about the use of social media tools to connect with and keep their workforces informed. In fact, more than two-thirds of companies surveyed by global professional services company Towers Watson plan to increase their use of social media tools over the next 12 months though many question their cost effectiveness.

The biannual study also found that companies with the best communication programs enhance the communication skills of their leaders and managers, and continuously evaluate performance.

“The way companies handle employee communication is fundamentally changing, largely due to increased expectations, diversity and globalization, as well as the growth of social media and networking,” said Richard Yeo, talent management and change management consulting leader, South East Asia, at Towers Watson.

"Change and communication professionals can no longer do things the way they’ve always been done. There is a greater need than ever to deliver information to employees in a manner that creates a sense of community and motivates change."

The 2011 Towers Watson Change and Communication ROI Study found that roughly two-thirds (64%) of respondents are more knowledgeable about using social media tools than they were a year ago, and 69% plan to increase their use over the next 12 months.

However, only 28% report these tools are cost effective at their organization, and just 15% have measurement tools in place. The respondents that find social media tools cost effective are investing in social networks (63%) and leadership journals or blogs (58%).

“Companies are staring at a clear opportunity to use new media to increase engagement with employees,” said Yeo. “Social media and networking clearly open an opportunity for dialogue, rapidly integrate employees into the company culture and create a sense of community. Companies that are reluctant to try social media may end up limiting their ability to attract, retain and motivate certain key groups of employees.”

The 2011 Towers Watson Change and Communication ROI Study includes responses from 604 organizations from around the world. The research identified the best communication and change management practices at top-performing companies. These findings include the following: